The Federal Reserve has requested public comment on two proposals for payment stablecoin issuers under its supervision. The proposals implement parts of the GENIUS Act and are not final rules. The comment period closes 60 days after publication in the Federal Register. Federal Reserve announcement.
The first proposal would require covered issuers to back outstanding stablecoins fully with permitted reserve assets, including short-term Treasury bills and other qualifying liquid assets. It also introduces standardized capital requirements for credit and operational risks, risk-management standards and rules for supervised firms that safeguard reserve assets.
The second proposal sets an application process for supervised banks seeking permission to issue payment stablecoins through a subsidiary. Applicants would submit a business plan and financial information, with procedures for appeals, hearings and final decisions.
The scope matters. These proposals apply to issuers and banks supervised by the Federal Reserve. They do not by themselves create one universal rule for every stablecoin company, and they do not mean an applicant has already received approval. Other federal and state regulators have responsibilities under the wider statutory framework.
For users, the practical questions are whether reserves remain identifiable and liquid, whether redemption at par works during stress and how losses or operational failures are absorbed. Governor Michael Barr supported the proposal while calling for clear universal redemption rights and further work on interest-rate, foreign-exchange and anti-money-laundering risks. Governor Barr's statement.