The Federal Reserve has proposed two rulemakings to implement its responsibilities under the GENIUS Act, setting out reserve, capital, risk-management and approval requirements for payment stablecoin issuers under its supervision. The Fed’s September 24 proposals would establish separate frameworks for supervised issuers and banks seeking permission to enter the stablecoin market.
Under the first proposal, Board-supervised payment stablecoin issuers would have to fully back their tokens with permitted reserve assets, including short-term U.S. Treasury bills and other high-quality, liquid assets. The framework would also introduce standardized capital requirements aimed at credit and operational risks, risk-management standards and rules for firms safeguarding assets held as stablecoin reserves. It would also clarify which stablecoin-related activities are permissible for Board-supervised banks.
A separate proposal would create an application process for insured state member banks seeking Federal Reserve approval for a subsidiary to issue payment stablecoins. Applicants would need to provide a business plan, financial information and other supporting material, while the proposed framework would also establish procedures for appeals, hearings and final determinations. The proposed bank application framework remains subject to public consultation.
Fed Governor Michael Barr backed the rulemaking while stressing the importance of redemption. “Stablecoins will only be stable if they can be reliably and promptly redeemed at par in a range of conditions,” he said. In his statement accompanying the proposals, Barr also called for clear universal redemption rights and said public feedback would be important on reserve limitations, capital requirements, interest-rate risk and foreign-currency risk.
The proposals arrive as U.S. regulators continue implementing the GENIUS Act, which became law on July 18, 2025 and gave regulators one year to promulgate implementing regulations. The legislation set that deadline at July 18, 2026. The NCUA and OCC issued stablecoin proposals in February, while the FDIC followed with a prudential framework in April and the Treasury Department opened a broader stablecoin rulemaking in August.
The Fed’s proposals are not final rules. The Board said the public comment periods will remain open for 60 days after publication in the Federal Register, giving banks, stablecoin issuers and other stakeholders an opportunity to respond before the Federal Reserve moves toward a final framework.
