Federal Reserve Board seeks public comment on stablecoin proposals
by@bwenews
Summary
On September 24, 2026, the Federal Reserve Board announced it is seeking public comments on two proposals aimed at creating a regulatory framework for payment stablecoin issuers under the GENIUS Act. The proposals stipulate that these issuers must fully back their stablecoins with high-quality reserve assets, such as short-term Treasury bills, and establish capital requirements to mitigate credit and operational risks. Additionally, they introduce a tailored application process for banks under Board supervision looking to issue stablecoins, requiring them to submit detailed business plans and financial information. The comment period will remain open for 60 days following publication in the Federal Register.
Analysis
GENIUS Act: The GENIUS Act is U.S. legislation that authorizes the Federal Reserve Board to supervise and establish rules for payment stablecoin issuers. It provides the statutory basis for requirements around reserves, risk management, and bank participation in stablecoin activities. The proposals announced today implement key provisions of this law through public consultation. Federal Reserve Board: The Federal Reserve Board is the primary governing body of the U.S. Federal Reserve System, responsible for monetary policy, bank supervision, and maintaining financial stability. It oversees Board-supervised institutions and develops regulatory standards for emerging financial activities. In this development, the Board has issued two proposals to create a regulatory framework for payment stablecoin issuers as authorized by the GENIUS Act. Stablecoin Regulation: The proposals introduce requirements for full backing of stablecoins with permissible high-quality assets along with capital and risk management standards for supervised issuers. Bank Application Process: A tailored application and review process is outlined for Board-supervised banks seeking to issue payment stablecoins, including submission of business plans and financial details.
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