Fed Proposes Full Reserve And Capital Rules For US Stablecoin Issuers
The Federal Reserve has proposed rules to define how payment stablecoins could be issued under the new GENIUS Act framework. Under one proposal, Board-supervised stablecoin issuers would need to fully back outstanding tokens with permitted reserve assets, such as short-term Treasury bills and other high-quality liquid assets. The plan also adds standardized capital requirements for credit and operational risks, plus broader risk-management and custody standards. For banks already under Fed supervision, the rules would clarify which stablecoin activities are allowed. A second proposal creates a formal application process for banks that want to issue stablecoins, requiring a business plan, financial information, and procedures for decisions, hearings, and appeals. The Fed is seeking public comment, and Governor Michael Barr supported the approach while stressing clear redemption rights and strong safeguards.
