On September 24, the U.S. Federal Reserve (Fed) unveiled two draft rules for issuers of payment stablecoins as part of the implementation of the previously enacted GENIUS Act.
Under the regulator’s proposal, issuers supervised by the Fed would be required to fully back issued stablecoins with eligible reserve assets. These include, in particular, short-term U.S. Treasury bonds and other high-quality, highly liquid assets.
At the same time, the proposal calls for establishing standardized capital requirements for issuers to cover credit and operational risks, risk management requirements, as well as specific rules for companies responsible for safeguarding stablecoin reserve assets.
The second document establishes a special procedure for banks under the Fed’s supervision that wish to issue their own payment stablecoins. Banks will be required to submit a business plan, financial information, and other documents.
Thus, following the legislative framework for the stablecoin market, U.S. regulators are moving toward creating a practical system for supervising issuers.
Federal Reserve Board Member Michael Barr separately emphasized the need to ensure that stablecoins can be reliably redeemed at par value even under conditions of market stress.
The public comment period for the proposals will last 60 days following their publication in the Federal Register.
