The US Federal Reserve has proposed new rules for issuers of dollar-backed stablecoins, as mandated by the GENIUS Act. The proposed regulations would require stablecoin issuers to hold reserves in assets like Treasury bills and impose capital requirements to mitigate credit and operational risks. The rules also outline guidelines for banks involved in stablecoin custody and activities.
The proposed rules aim to enhance the stability and safety of the stablecoin market by requiring issuers to hold sufficient reserves and meet capital requirements, potentially reducing risks for users and the broader financial system.
The US Federal Reserve on Thursday proposed new regulations for issuers of dollar-backed cryptocurrency tokens, known as stablecoins, in accordance with the GENIUS Act passed last year. The proposed rules aim to establish a federal regulatory framework for these digital assets.
Under the proposal, stablecoin issuers supervised by the Fed would be required to maintain full backing of their tokens with specific reserve assets, such as short-term Treasury bills. Additionally, the rules would introduce capital requirements for issuers to manage credit and operational risks. The Federal Reserve will accept public comments on the proposed regulations for 60 days following their publication in the Federal Register.
The Office of the Comptroller of the Currency (OCC) is also issuing a notice of proposed rulemaking to implement the GENIUS Act, which establishes a regulatory framework for payment stablecoin activities. The OCC's proposed rule, expected to be codified in 12 CFR 15, will cover standards for reserve assets, redemption, risk management, audits, custody, and application processes for permitted payment stablecoin issuers. The GENIUS Act generally prohibits the issuance of payment stablecoins by entities other than permitted payment stablecoin issuers.
Pick the topics you care about. Get only what matters, on your cadence.