Fed's Stablecoin Proposal Sets Capital Charges and Presumes Some Yield Deals Are Prohibited
- On Thursday, the Federal Reserve proposed new regulatory requirements for stablecoin issuers under the GENIUS Act, mandating full asset backing with Treasury bills and specific capital standards to manage credit and operational risks.
- Federal agencies missed the law's July 18, 2026, deadline for finalizing rules, leaving several proposals at different stages of review while Treasury targets January 18, 2027, for the statute's main issuer restrictions.
- Under the proposal, issuers must fully back tokens with assets like short-term Treasury bills, and the Fed established a tailored application process for insured state member banks seeking to issue stablecoins.
- The Fed will accept public comments for 60 days following Federal Register publication; once an application is complete, the GENIUS Act grants the agency 120 days to decide.
- Bank of America, Citi, Goldman Sachs, and 18 other financial institutions plan to establish a stablecoin company by early 2027, though it remains unclear if the venture will utilize this Fed application route.
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50 Articles
Fed's Stablecoin Proposal Sets Capital Charges and Presumes Some Yield Deals Are Prohibited
The Federal Reserve Board on Thursday proposed reserve, capital and risk management rules for the stablecoin issuers it supervises under the GENIUS Act, along with an application process for state member banks that want to issue stablecoins through a subsidiary. Comments on both proposals are due 60 days after they are published in the Federal Register. The rules would cover subsidiaries of insured state member banks approved to issue stablecoin…
US Market: Fed proposes new rules for stablecoin issuers under GENIUS Act
The US Federal Reserve proposed rules for dollar-backed stablecoin issuers, advancing implementation of the GENIUS Act. The framework would require full reserve backing, capital and risk-management standards, and oversight for banks safeguarding reserves. It also outlines a process for supervised banks seeking approval to issue stablecoins, with 60 days for public comments.
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