Fed seeks public comment on rules for payment stablecoin issuers under GENIUS Act
The proposals would set reserve, capital and application requirements for stablecoin issuers that the Federal Reserve Board supervises.
What we know
- The Federal Reserve Board on Thursday requested public comment on two proposals to set up a regulatory framework for Board-supervised payment stablecoin issuers under the GENIUS Act. [1] [2]
- The first proposal would require full backing of stablecoins with permissible reserve assets, such as short-term Treasury bills and certain other high-quality, liquid assets, and would set standardized capital requirements and risk management standards. [2]
- The second proposal would create a tailored application process for Board-supervised banks seeking to issue payment stablecoins, including a business plan and financial information. [2]
- The comment period will close 60 days after publication in the Federal Register. [2]
- Not yet confirmed: The Fed did not say when the proposals will be published in the Federal Register, so the exact comment deadline is not yet known. The sources do not include the text of the proposals, a Board vote tally or a timeline for final rules.
The Federal Reserve Board on Thursday asked for public comment on two proposals that would create a regulatory framework for payment stablecoin issuers under its supervision, the Fed said in a post on X and a press release.[1][2]
The first proposal would require Board-supervised issuers to fully back their stablecoins with certain permissible reserve assets. The Fed listed short-term Treasury bills and certain other high-quality, liquid assets as examples.[2]
The same proposal would set standardized capital requirements to address certain credit and operational risks of payment stablecoin activities, along with risk management standards, the Fed said.[2]
It would also introduce rules for Board-supervised firms that safekeep the assets backing payment stablecoins, and it would clarify which stablecoin and related activities Board-supervised banks may conduct, according to the Fed.[2]
The second proposal would set up a tailored application process for Board-supervised banks that want to issue payment stablecoins. Applicants would have to submit a business plan and financial information, among other documents, the Fed said. The proposal would also create a process for appeals, hearings and final determinations on applications.[2]
The comment period will close 60 days after the proposals are published in the Federal Register, the Fed said.[2] The release lists two Federal Register notices and links a statement from Governor Barr, but the sources do not detail that statement.[2]
RECEIPTS · 2 SOURCES
- 1POST ON X · @federalreserve (Federal Reserve)@federalreserve requests public comment on two proposals related to establishing a regulatory framework for Board-supervised payment stablecOpen source ↗ Archived copy
- 2OFFICIAL STATEMENT · www.federalreserve.govwww.federalreserve.govOpen source ↗ Archived copy