Key points

• The Fed published two proposals covering supervised payment stablecoin issuers under the GENIUS Act.
• The first would require full backing with reserve assets such as short-term Treasury bills and other high-quality liquid assets.
• It would also standardise capital requirements for credit and operational risks and set risk-management standards.
• The second would create an application process for banks wanting to issue payment stablecoins, including business plans and financial information.
• Comments close 60 days after publication in the Federal Register; the GENIUS Act was signed on 18 July 2025.

The US Federal Reserve Board has asked the public to comment on two proposals that would set up a regulatory framework for supervised payment stablecoin issuers under the GENIUS Act, Cointelegraph reports. The move follows criticism that US agencies missed a rule-making deadline under the law, a year after it was signed.

The first proposal would require issuers to fully back their stablecoins with reserve assets. These would include short-term Treasury bills and other high-quality, liquid assets, according to a Fed release issued on Thursday. The same proposal would standardise capital requirements to address credit and operational risks, and would set risk-management standards for issuers.

The second proposal would establish an application process for banks that want to issue payment stablecoins. Under it, applicants would have to submit business plans and financial information. The proposal would also create a process for appeals, hearings and final determinations on those applications.

Fed opens stablecoin consultation

The comment period will close 60 days after the proposals are published in the Federal Register. That gives industry participants, banks and other interested parties a window to respond before the Fed moves towards final rules.

Cointelegraph reported in July that US regulatory agencies had missed a rule-making deadline under the GENIUS Act, a year after the law was signed. Several agencies had published proposed rules and collected public feedback during the preceding year, but no final regulations were issued before the deadline passed.

The GENIUS Act created the first comprehensive federal regulatory framework for stablecoins in the United States. President Donald Trump signed it into law on 18 July 2025. The Fed's two proposals are part of the work of turning that framework into binding rules for issuers.

Reserve and capital rules

For stablecoin issuers and banks considering entering the market, the proposals set out the reserve, capital and approval conditions they would face. The consultation also signals how far the US remains from final stablecoin rules, despite the law having been in place for about a year.

Read the full article on CoinTelegraph →