The US Federal Reserve Board has requested public comment on two distinct proposals aimed at establishing a regulatory framework for supervised payment stablecoin issuers under the GENIUS Act.
According to a release issued by the Fed on Thursday, the first proposal mandates that issuers fully back their stablecoins with reserve assets. These assets include short-term Treasury bills and other high-quality, liquid assets. Furthermore, the proposal would standardize capital requirements to address credit and operational risks while setting baseline risk-management standards.
The second proposal outlines an application process specifically for banks seeking to issue payment stablecoins. Under this framework, institutions would be required to submit comprehensive business plans and financial information. Additionally, the proposal establishes a formalized process for appeals, hearings, and final determinations regarding these applications.
The public comment period will remain open for 60 days following publication in the Federal Register.
The GENIUS Act, signed into law by President Donald Trump on July 18, 2025, established the first comprehensive federal regulatory framework for stablecoins in the United States. In July, reporting indicated that US regulatory agencies had missed a rulemaking deadline under the legislation, a year after the law was enacted, though various agencies had previously published proposed rules and gathered public feedback.
