Federal Reserve Proposes Rules for U.S. Stablecoin Issuers

The U.S. Federal Reserve has introduced proposed rules to implement the 2025 GENIUS Act, establishing a federal framework for payment stablecoins. The requirements include full backing by permitted reserve assets, such as short-term U.S. Treasury securities, and standardized capital and risk-management protocols. The proposal also outlines an application process for Fed-supervised banks to issue stablecoins through subsidiaries, addressing a mandate that regulators establish this framework following the enactment of the law.