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Fed Proposes Stablecoin Rules Under GENIUS Act
Federal Reserve seeks public input on stablecoin reserve and capital rules via GENIUS Act.
In brief
Federal Reserve seeks public input on stablecoin reserve and capital rules via GENIUS Act. The Federal Reserve proposed reserve and capital rules for payment stablecoin issuers under the GENIUS Act to ensure reliability. Originally reported by Pymnts.
Fed Proposes Stablecoin Rules
The Federal Reserve Board requested public comment on two proposals for payment stablecoin issuers under the GENIUS Act.
60-Day Comment Period
The agency will accept public comments on the proposals for 60 days after publication in the Federal Register.
First Proposal Details
One proposal requires board-supervised payment stablecoin issuers to fully back stablecoins with permissible reserve assets and establishes capital requirements for credit and operational risks.
Second Proposal Details
The other proposal creates a tailored application process for banks issuing payment stablecoins and a process for appeals and hearings.
Governor Barr Statement
Federal Reserve Governor Michael S. Barr said public input is needed on reserve asset limitations and capital requirements for stablecoins.
GENIUS Act Implementation
The proposals were approved in unanimous board votes and aim to ensure stablecoins are reliable payment instruments under the GENIUS Act.
The takeaway
The Federal Reserve proposed reserve and capital rules for payment stablecoin issuers under the GENIUS Act to ensure reliability.
