US Federal Reserve Proposes Rules for Stablecoin Issuers Under GENIUS Act

The US Federal Reserve has released two draft rules to regulate payment stablecoin issuers, implementing the GENIUS Act enacted in July 2025. The proposals mandate that issuers maintain full reserves in high-quality liquid assets, such as short-term US Treasury bills, to ensure 1:1 redemption. Additionally, the rules introduce standardized capital requirements to cover operational risks, including fraud, IT incidents, and custody failures. The draft regulations are subject to a 60-day public consultation period following their publication in the Federal Register.