Federal Reserve Proposes New Rules for Stablecoin Issuers Under GENIUS Act

The Federal Reserve has introduced two proposed rules to establish oversight for stablecoin issuers under the GENIUS Act. The first proposal mandates that supervised issuers fully back tokens with high-quality liquid assets, such as short-term US Treasury bills, while setting capital requirements for credit and operational risks. The second proposal outlines the application process for banks seeking to issue payment stablecoins, requiring detailed business plans and financial documentation. Fed Governor Michael Barr emphasized that these measures aim to ensure stablecoin redeemability during market stress. The public comment period will remain open for 60 days following publication in the Federal Register.