Federal Reserve Board requests public comment on two proposals related to establishing a regulatory framework for Board-supervised payment stablecoin issuers un
The Federal Reserve seeks public input on two proposals to regulate payment stablecoin issuers under the GENIUS Act, including reserve backing and capital requirements.
The Federal Reserve Board has opened a 60-day public comment period on two proposals aimed at creating a regulatory framework for payment stablecoin issuers under its supervision. The first proposal requires issuers to fully back stablecoins with permissible reserve assets such as short-term Treasury bills and other high-quality liquid assets. It also sets standardized capital requirements to address credit and operational risks, along with risk management standards.
The first proposal further outlines rules for firms that safeguard the assets backing payment stablecoins, clarifying the permissibility of stablecoin-related activities for Board-supervised banks. These measures align with the requirements of the GENIUS Act and aim to enhance stability in the payment stablecoin market.
The second proposal establishes a tailored application process for Board-supervised banks seeking to issue payment stablecoins. Applicants would need to submit a detailed business plan and financial information, among other required documents. This process includes provisions for appeals, hearings, and final determinations.
The comment period for both proposals will remain open for 60 days following their publication in the Federal Register. The Federal Reserve invites feedback from stakeholders to inform the final regulatory framework.