Key facts
- The Federal Reserve has requested public comment on two proposals for regulating payment stablecoin issuers under the GENIUS Act.
- One proposal mandates full backing of stablecoins with assets like short-term Treasury bills and sets capital requirements.
- The second proposal establishes an application process for banks wishing to issue payment stablecoins.
- The comment period will close 60 days after publication in the Federal Register.
- US regulatory agencies missed a rule-making deadline for the GENIUS Act in July 2025.
The US Federal Reserve Board has requested public comment on two proposals aimed at establishing a regulatory framework for supervised payment stablecoin issuers under the GENIUS Act. The first proposal requires issuers to fully back their stablecoins with reserve assets, including short-term Treasury bills and other high-quality, liquid assets. It also standardizes capital requirements to address credit and operational risks and sets risk-management standards. The second proposal details an application process for banks seeking to issue payment stablecoins, requiring them to submit business plans and financial information, and establishes a process for appeals, hearings, and final determinations for applications. The comment period will close 60 days after publication in the Federal Register. This action follows a missed rule-making deadline in July 2025, a year after the GENIUS Act was signed into law by President Donald Trump, which established the first comprehensive federal regulatory framework for stablecoins in the US.