Fed opens comment window on stablecoin issuer rules under GENIUS Act
DeFi & Yields ·
The central bank is seeking input on a pair of draft rules that would govern how banks it supervises can issue and manage payment stablecoins.
The Federal Reserve Board on Thursday put out two proposals aimed at building a supervisory structure for payment stablecoin issuers that fall under its jurisdiction, part of the implementation of the GENIUS Act, according to a press release. The first proposal centers on reserve backing, requiring issuers to hold permissible assets — among them short-term Treasury bills and other high-quality, liquid instruments — sufficient to fully cover outstanding stablecoins. It also lays out standardized capital thresholds meant to address credit and operational risk tied to stablecoin activity, alongside broader risk-management expectations mandated by the statute.
That same proposal extends beyond issuers themselves. It would set rules for Board-supervised entities that safekeep the assets backing stablecoins, and it would spell out which stablecoin-related activities Board-supervised banks are permitted to conduct.
The second proposal deals with market entry. It would create a tailored application pathway specifically for Board-supervised banks seeking to issue payment stablecoins, requiring applicants to submit a business plan and supporting financial documentation. The proposal also lays out procedures for appeals, hearings, and final determinations tied to those applications — giving banks and the Board a defined process for resolving disputes over approval decisions.
The move has been noted elsewhere as the Fed advancing its regulatory groundwork for stablecoin oversight in line with the GENIUS Act, a framing echoed in commentary tracked on X. Coverage of the announcement has appeared across at least three distinct sources, pointing to broad attention on how the Fed intends to translate the statute into supervisory practice.
What remains open is the timeline for finalization: the public comment window will run for 60 days after the proposals are published in the Federal Register, meaning the substance of the rules — including exact capital thresholds and the scope of permitted activities — could still shift based on feedback from banks, custodians, and other stakeholders before any final framework takes effect.