U.S. Federal Reserve moves on proposals to implement GENIUS Act for stablecoins
The Federal Reserve proposed two rules to implement the GENIUS Act’s stablecoin oversight framework, opening each to 60 days of public comment. One proposal sets capital and reserve standards, defines permitted activities for supervised banks and addresses rewards, presuming some third-party arrangements that pay interest or yield are prohibited. The other establishes the process for regulated banks to seek approval to issue stablecoins, including submission of business plans and financial information. The proposals follow related steps by the OCC, Treasury and FDIC. The rules are part of a wider, delayed effort to put the law’s requirements in place; final regulations will follow public input. The GENIUS Act remains the primary law governing stablecoin rewards after related provisions were not adopted in the failed Digital Asset Market Clarity Act.
