Economy
Fed Sets Stablecoin Reserve, Capital Rules For Bank Issuers
The Federal Reserve opened public comment on proposed rules governing stablecoin issuers and applicants supervised by the central bank.
What happened
The Federal Reserve Board on Thursday sought public comment on two proposals implementing a regulatory framework for Board-supervised payment stablecoin issuers under the GENIUS Act. One proposal would require full backing with permissible reserve assets, including short-term Treasury bills and other high-quality, liquid assets. It would also set capital and risk-management standards, regulate firms safeguarding reserve assets, and clarify stablecoin activities for supervised banks. The second would create a tailored application process requiring business plans and financial information, plus procedures for appeals, hearings, and final decisions. Comments close 60 days after Federal Register publication.
Why it matters
Banks and other Board-supervised firms would face defined reserve, capital, risk-management, custody, and application requirements for payment stablecoin activities. The proposals establish the framework but are not final rules.
Source: U.S. Federal Reserve