**Fed Moves to Tighten Stablecoin Rules With Two New GENIUS Act Proposals** • The Federal Reserve has proposed two rules under the GENIUS Act to enhance oversight of stablecoin issuers, requiring full backing of tokens with approved reserve assets and setting capital requirements. • The first pro
Regulation & Gov ·
The Federal Reserve announced two proposed rules under the GENIUS Act requiring stablecoin issuers to fully back tokens with approved reserve assets and maintain capital requirements for credit and operational risks. The first proposal targets risk management standards for payment stablecoin issuers supervised by the Fed, while the second addresses application procedures for banks seeking to issue payment stablecoins. Fed Governor Michael Barr stated that stablecoins must enable users to redeem tokens at full value even during market stress, with public comment on both proposals open for 60 days after Federal Register publication.