The US Federal Reserve Board is seeking public comment on two proposed rules for regulating supervised payment stablecoin issuers under the GENIUS Act. These proposals, released on Thursday, aim to establish a federal regulatory framework for stablecoins, a year after the GENIUS Act was signed into law.
The first proposed rule requires stablecoin issuers to fully back their stablecoins with high-quality liquid assets, such as short-term Treasury bills. It also standardizes capital requirements to address credit and operational risks and sets risk-management standards.
The second proposal outlines an application process for banks seeking to issue payment stablecoins, requiring them to submit business plans and financial information. This proposal also includes provisions for appeals, hearings, and final determinations.
Following publication in the Federal Register, the public will have 60 days to submit comments. The GENIUS Act, signed into law by President Donald Trump on July 18, 2025, established the first comprehensive federal regulatory framework for stablecoins in the US.
While regulatory agencies have been developing rules related to the GENIUS Act, the Federal Reserve’s proposals represent a significant step toward concrete regulations. The timeline for finalizing these rules depends on the public comment period and subsequent review, with uncertainties remaining regarding the specific details of the final framework and the issuance of final regulations.
Why This Matters
The materials describe a narrow update: The Federal Reserve has proposed two frameworks for stablecoin issuers under the GENIUS Act. Whether final regulations will be issued before the next deadline.
Broader Context
Source materials place the factual news in this context: US regulatory agencies missed a rule-making deadline under the GENIUS Act, a year after the law was signed.
