Fed: proposals on GENIUS Act rules for stablecoin issuers

What changed

The Federal Reserve Board requested public comment on two proposals under the GENIUS Act. The first would require full backing with permissible reserve assets such as short-term Treasury bills, set capital and risk management standards, and add rules for firms that safekeep reserve assets. The second would set an application process for Board-supervised banks seeking to issue payment stablecoins, including appeals and hearings. The Board says the comment period closes 60 days after publication in the Federal Register.

Key details

• One proposal addresses reserve backing, capital, risk management and safekeeping by Board-supervised firms.
• The other proposes an application process for Board-supervised banks seeking to issue payment stablecoins.
• The comment period is tied to Federal Register publication, not the press-release date.

What it means

Product perspective: separate issuer requirements from the bank application process when mapping dependencies. These proposals do not establish that a particular token or provider has already been approved.

Matters for

Board-supervised banks that issue or want to issue payment stablecoins, and Board-supervised firms that safekeep the assets backing them.