Federal Reserve Proposes Capital and Redemption Rules for Stablecoin Issuers

The U.S. Federal Reserve has released draft rules for stablecoin issuers to implement the GENIUS Act, requiring tiered operational risk capital buffers and a two-business-day redemption window. Issuers must maintain 1:1 reserves in cash, bank deposits, or short-term Treasurys, with monthly public disclosures certified by CEOs and CFOs. The proposal, which includes mandatory liquidation procedures for under-collateralized reserves, is open for a 60-day public comment period ahead of the act's implementation.