US Federal Reserve proposes new stablecoin rules
XLF•The Federal Reserve proposed rules requiring supervised payment stablecoin issuers to fully back tokens with certain reserve assets and meet capital requirements. The proposal also covers bank custody of reserves and bank stablecoin activities, with a 60-day comment period after publication in the Federal Register.
1. Proposed requirements
The Federal Reserve proposed new rules for issuers of dollar-backed stablecoins under the GENIUS Act. The proposal would require supervised payment stablecoin issuers to fully back tokens with certain reserve assets, such as short-term Treasury bills, and impose capital requirements addressing credit and operational risks.
2. Rules for banks
The proposal would set guidelines for Fed-supervised banks that hold reserves for stablecoin issuers, outline stablecoin-related activities those banks can undertake, and create a tailored application process for banks seeking to issue their own stablecoins. The Fed will accept comments for 60 days after the rules are published in the Federal Register.
