Federal Reserve Proposes New Regulatory Framework for Payment Stablecoin Issuers
The Federal Reserve has released two proposals to regulate payment stablecoin issuers and define application procedures for supervised banking institutions under the GENIUS Act.
By Orion Desk
The Federal Reserve Board is soliciting public feedback on a proposed regulatory framework that mandates stablecoin issuers maintain full backing through high-quality, liquid assets like short-term Treasury bills. These rules further introduce standardized capital requirements and risk management standards, while clarifying the operational scope for Board-supervised banks engaging in stablecoin activities.
A second proposal outlines a formal application process for banks seeking approval to issue stablecoins, necessitating the submission of detailed business plans and financial documentation. The regulatory structure also incorporates formal procedures for appeals and hearings, with a public comment window remaining open for 60 days following the publication of the proposals.
Originally published by Federal Reserve
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