Fed proposes new stablecoin rules under GENIUS Act

Reading Time: < 1 minute

The Federal Reserve has proposed new rules for stablecoin issuers under the GENIUS Act, including reserve-asset limits and standardised capital requirements.

The proposal would require payment stablecoins to be fully backed by short-term US Treasurys or other highly liquid assets. It would also introduce risk-management standards and a dedicated application process for board-supervised banks seeking to issue stablecoins.

The Fed and other federal regulators are working to implement the GENIUS Act, which establishes a federal framework for stablecoins and requires full backing with dollars or similarly liquid assets.