The Federal Reserve Board published a request for comment on two proposals related to establishing a regulatory framework for Board-supervised payment stablecoin issuers under the GENIUS Act. The first proposal would require that Board-supervised payment stablecoin issuers fully back their stablecoins with certain permissible reserve assets and establish standardized capital requirements and risk management standards. It would also introduce rules for Board-supervised firms that safekeep the assets backing payment stablecoins and clarify the permissibility of stablecoin and related activities for Board-supervised banks. Read the proposal Implementing the Federal Reserve Board’s Responsibilities under the GENIUS Act. Read the associated Board Memo
The second proposal would establish a tailored application process for Board-supervised banks applying to issue payment stablecoins. These applicants would be required to submit a business plan and financial information, among other documents. The proposal would also create a process governing appeals, hearings, and final determinations for applications. Read the proposal Application Procedures for Board-Supervised Insured Depository Institutions Seeking Approval for a Subsidiary to Issue Payment Stablecoins. Read the associated Board Memo
The proposals are out for a public review period that closes on November 30, 2026.
