Key Highlights The Federal Reserve Board proposed two rules on September 24 to implement the GENIUS Act, requiring payment stablecoin issuers to fully back tokens with permissible reserve assets and meet new capital and risk-management standards. The first proposal mandates full reserve backing using short-term Treasury bills and other high-quality liquid assets, while the second ...
Key Highlights The Federal Reserve proposed two rules on Thursday to establish oversight for payment stablecoin issuers under the GENIUS Act, opening a 60-day public comment period. The first proposal mandates full backing of stablecoins with approved reserve assets such as short-term U.S. Treasury bills and sets capital requirements for credit and operational risks. The ...
Key Highlights The Federal Reserve has proposed a banking-like regulatory framework for payment stablecoin issuers it supervises, requiring full reserve backing, fixed capital requirements, safe custody, and a tailored approval process under the GENIUS Act. Governor Michael S. Barr warned that the proposed anti-money-laundering (AML) standard focusing on “significant or systemic” failures may constrain the ...