The Federal Reserve has proposed two rules to establish oversight for stablecoin issuers under the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. The proposals were announced Thursday and opened for public comment.
Reserve Requirements and Capital Standards
The first proposal requires payment stablecoin issuers supervised by the Fed to fully back their tokens with approved reserve assets, including short-term US Treasury bills and other high-quality liquid assets. The proposal also establishes capital requirements for credit and operational risks and adds risk management standards for stablecoin activities.
The second proposal covers rules for firms holding assets that back stablecoins and clarifies which stablecoin activities are permitted for Fed-supervised banks. It also establishes application procedures for supervised banks seeking to issue payment stablecoins, requiring submission of business plans, financial information, and other documentation. The proposal includes provisions for appeals and hearings on applications.
Regulatory Framework Development
The GENIUS Act passed through Congress in 2025 as lawmakers moved to establish federal stablecoin rules. President Donald Trump signed the legislation into law on July 18, 2025. The Treasury Department subsequently proposed major federal definitions covering stablecoin issuers and entities subject to the law.
Multiple agencies have been developing stablecoin regulations in parallel. The Federal Deposit Insurance Corp began its regulatory process in December, and several agencies proposed in June requiring stablecoin issuers to verify and identify users consistent with existing financial regulations.
Public Comment Period
Public comments on the Fed's two proposals will remain open for 60 days following publication in the Federal Register.
