Federal Reserve Analyzes Stablecoin Blind Spots: Transaction Fees Can Exceed Transfer Amounts

The Federal Reserve has analyzed the limitations of public blockchains used for stablecoin transactions, noting that transaction fees can sometimes exceed the actual transfer amount. While the proposed GENIUS Act aims to regulate U.S. stablecoin issuers by ensuring asset quality and redemption certainty, the underlying public blockchain infrastructure continues to face challenges regarding fee markets and processing capacity.