The Federal Reserve is seeking public feedback on two proposals that would create a regulatory framework for payment stablecoin issuers supervised by the central bank under the GENIUS Act.
The first proposal would require stablecoin issuers to fully back their tokens with approved reserve assets, including short-term U.S. Treasury bills and other high-quality, liquid assets.
It would also introduce capital requirements covering credit and operational risks, along with new risk management standards. The proposal includes rules for companies that hold or safeguard stablecoin reserves and would clarify which stablecoin activities are permitted for banks supervised by the Federal Reserve.
The second proposal would create a new application process for banks seeking to issue payment stablecoins. Applicants would need to provide information such as business plans and financial details.
The Fed also proposed procedures for handling appeals, hearings and final decisions on stablecoin issuance applications.
Together, the proposals would establish the Fed’s framework for supervising payment stablecoin issuers and banks operating in the sector under the GENIUS Act.
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