Federal Reserve Seeks Public Comment on GENIUS Regulatory Framework for Stablecoin Issuance Under the Act
BIBIBI
AT A GLANCE
The Federal Reserve Board announced a public solicitation of comments on two proposals for a regulatory framework governing payment stablecoin issuance.
Article
Federal Reserve Seeks Comments on GENIUS the regulatory framework for stablecoin issuance under the Act
BlockBeats news,September 25, the Federal Reserve Board September 24 announced that it is seeking public comment on two proposals to establish a regulatory framework for payment stablecoin issuers it supervises pursuant to the GENIUS Act.
The first proposal would require issuers to fully reserve stablecoins with approved high-quality liquid assets, such as short-term U.S. Treasury securities, and establish standardized capital requirements and risk-management standards for the credit and operational risks of stablecoin activities. The proposal would also establish rules for Federal Reserve-supervised institutions that custody stablecoin reserve assets and clarify the permitted scope of stablecoin and related activities conducted by supervised banks.
The second proposal would establish a dedicated application process for Federal Reserve-supervised banks seeking to issue payment stablecoins. Applicants would be required to submit documents including business plans and financial information, while procedures for application appeals, hearings, and final determinations would also be established. The public comment period will end 60 days after the proposals are published in the Federal Register.
Original link https://m.theblockbeats.info/flash/368918
Key points
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According to BlockBeats, the Federal Reserve Board September 24 announced that it is seeking public comment.
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The proposals are based on the GENIUS Act and apply to payment stablecoin issuers supervised by the Federal Reserve.
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The first proposal requires issuers to maintain full reserves in approved high-quality liquid assets, such as short-term U.S. Treasury securities.
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The first proposal also addresses standardized capital requirements, risk-management standards, rules for the custody of reserve assets, and the permitted scope of related activities by regulated banks.
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The second proposal would establish a dedicated application process for Federal Reserve-supervised banks seeking to issue payment stablecoins.
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Applicants must submit documents such as business plans and financial information, and procedures are provided for appeals, hearings, and final determinations.
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The public comment period will end 60 days after the proposal is published in the Federal Register.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
Stablecoin issuers will need to maintain fully backed, highly liquid reserve assets and may face uniform capital and risk-management requirements. Banks supervised by the Federal Reserve that wish to issue payment stablecoins will also need to submit application materials through a dedicated process. The current content describes a proposal for public comment, not final rules already in effect.
Why it matters to readers
These proposals address which assets back stablecoins, the capital and risk-management requirements issuers must meet, and how banks may apply to issue stablecoins, potentially affecting the compliance and operational arrangements of relevant institutions.
Beginners should distinguish between “public consultation” and “formal entry into force of rules”: the proposal may still change, and it cannot be used to conclude that all stablecoins are already subject to these requirements.
Risks and unknowns
The evidence does not specify September 24 and September 25 the corresponding year.
The evidence provides a BlockBeats paraphrase and a Telegram link, but no original Federal Reserve announcement link.
The proposal remains in the public-comment stage; the final rules and effective-date arrangements cannot be confirmed.
The publication date in the Federal Register and the specific deadline for submitting comments have not been provided.
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Related concepts
Payment stablecoins
This term is not in the glossary yet. Browse related concepts in the glossary.
