The Federal Reserve Board has proposed a regulatory framework for Board-supervised payment stablecoin issuers under the GENIUS Act. One proposal would require stablecoins to be fully backed by permissible reserve assets, including short-term Treasury bills and certain other high-quality, liquid assets. It would also impose standardized capital requirements for credit and operational risks and establish risk management standards. The proposal would separately set rules for Board-supervised firms that safekeep stablecoin reserve assets and clarify which stablecoin and related activities are permissible for Board-supervised banks. A second proposal would create a tailored application process for supervised banks seeking to issue payment stablecoins, requiring business plans, financial information and other documentation, alongside procedures for appeals, hearings and final determinations.
Federal Reserve Board launches two consultations on GENIUS Act framework for payment stablecoin issuers
The Federal Reserve Board has proposed a GENIUS Act framework requiring Board-supervised payment stablecoin issuers to maintain full backing with permissible reserve assets and meet capital and risk management standards. A separate proposal would establish a tailored application and review process for supervised banks seeking to issue payment stablecoins.