Fed Proposes Full Reserve And Capital Rules For US Stablecoin Issuers
The Federal Reserve has proposed two new rulemaking packages for payment stablecoin issuers under the GENIUS Act. Board-supervised issuers would have to fully back tokens with permitted reserve assets and meet standardized capital and risk-management requirements. The proposals are not final rules yet, with a 60-day public comment period ahead. **ID:** N25-01 **Site:** NewsBTC **Status:** READY **Author:** NewsBTC Editorial Team **Focus Keyword:** Stablecoin **Image Keyword:** Regulation **Category:** Regulation **Tags:** Federal Reserve, Stablecoins, GENIUS Act, Banking, Regulation **Primary Source:** https://www.federalreserve.gov/newsevents/pressreleases.htm Stablecoins Would Need Full Reserve Backing Under the first proposal, Board-supervised payment stablecoin issuers would have to back their outstanding tokens fully with permitted reserve assets. The Fed specifically points to short-term Treasury bills and other high-quality liquid assets as the sort of reserves that could qualify. It also wants standardized capital requirements aimed at covering credit and operational risks, alongside broader risk-management standards and rules for firms safeguarding stablecoin reserve assets. For banks already under Federal Reserve supervision, the proposal would also clarify which stablecoin-related activities are permissible. That is important because the legal framework created by Congress still needs to become something institutions can actually operate under. A law can establish the broad permission to issue regulated stablecoins. Banks still need detailed answers about reserve composition, capital, custody and supervision before launching products at scale. Banks Would Get A Dedicated Application Process The Fed’s second proposal deals with that entry point. Board-supervised banks seeking to issue payment stablecoins would have to submit an application including a business plan and financial information. The framework would also create formal processes for decisions, hearings and appeals. None of this is final yet. The Federal Reserve is seeking public comment, with the comment period closing 60 days after publication in the Federal Register.
Key Takeaways
- The Federal Reserve has proposed two new rulemaking packages for payment stablecoin issuers under the GENIUS Act.
- Board-supervised issuers would have to fully back tokens with permitted reserve assets and meet standardized capital and risk-management requirements.
- The proposals are not final rules yet, with a 60-day public comment period ahead.
Summary generated by IndiCrypto from NewsBTC. IndiCrypto is a news aggregator and does not provide investment advice. Read the original article for full context.
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