Fed Proposes GENIUS Act Rules for Stablecoin Reserves and Bank Issuers
- On Thursday, the Federal Reserve proposed new regulatory requirements for stablecoin issuers under the GENIUS Act, mandating full asset backing with Treasury bills and specific capital standards to manage credit and operational risks.
- Federal agencies missed the law's July 18, 2026, deadline for finalizing rules, leaving several proposals at different stages of review while Treasury targets January 18, 2027, for the statute's main issuer restrictions.
- Under the proposal, issuers must fully back tokens with assets like short-term Treasury bills, and the Fed established a tailored application process for insured state member banks seeking to issue stablecoins.
- The Fed will accept public comments for 60 days following Federal Register publication; once an application is complete, the GENIUS Act grants the agency 120 days to decide.
- Bank of America, Citi, Goldman Sachs, and 18 other financial institutions plan to establish a stablecoin company by early 2027, though it remains unclear if the venture will utilize this Fed application route.
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Fed proposes GENIUS Act rules for stablecoin reserves and bank issuers
The Federal Reserve has released two proposed GENIUS Act rules covering the assets that must back payment stablecoins and the approval process for banks seeking to issue them through subsidiaries. The Federal Reserve Board said in a Sep. 24 release…
The Federal Reserve presented on Thursday (24) proposals aimed at stablecoins issuers, in another step by the American regulators to advance in the creation of rules for the cryptoactive market. If approved, one of the proposals would require certain issuers to maintain their stablecoins fully lashed by permitted reserve assets, such as short-term US Treasury bonds and other liquid and high-quality assets. The measure would also establish capita…
The Federal Reserve has released new draft rules for issuers of dollar-backed stablecoins, which are required by the Genius Act passed last year. The proposal includes full reserve requirements, capital requirements and guidelines for banks, Reuters reports.
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