The Federal Reserve Board has proposed a regulatory framework for Board-supervised payment stablecoin issuers under the GENIUS Act. One proposal would require stablecoins to be fully backed by permissible reserve assets, including short-term Treasury bills and certain other high-quality, liquid assets. It would also impose standardized capital requirements for credit and operational risks and establish risk management standards. The proposal would separately set rules for Board-supervised firms that safekeep stablecoin reserve assets and clarify which stablecoin and related activities are permissible for Board-supervised banks. A second proposal would create a tailored application process for supervised banks seeking to issue payment stablecoins, requiring business plans, financial information and other documentation, alongside procedures for appeals, hearings and final determinations.
2026-09-24Federal Reserve Board
Federal Reserve Board launches two consultations on GENIUS Act framework for payment stablecoin issuers
The Federal Reserve Board has proposed a GENIUS Act framework requiring Board-supervised payment stablecoin issuers to maintain full backing with permissible reserve assets and meet capital and risk management standards. A separate proposal would establish a tailored application and review process for supervised banks seeking to issue payment stablecoins.