Federal Reserve Advances GENIUS Act Guidelines for Stablecoin Reserves

The U.S. Federal Reserve has released a new proposal regarding the GENIUS Act, establishing guidelines for how member banks can provide financial services to stablecoin issuers. Under the proposal, member banks are permitted to hold reserve deposits and provide asset custody services for eligible stablecoin issuers, provided they meet specific regulatory requirements. This move represents a significant step in integrating crypto-asset operations into the existing regulated banking framework.