Fed proposes new capital, redemption rules for stablecoin issuers
The Fed’s proposal would set capital requirements, a two-day redemption window and new reserve disclosures as regulators implement the GENIUS Act.
The Fed’s proposal would set capital requirements, a two-day redemption window and new reserve disclosures as regulators implement the GENIUS Act.
The Federal Reserve has proposed capital, redemption and other regulatory requirements for stablecoin issuers under its supervision as it moves to implement the GENIUS Act.
The GENIUS Act already requires stablecoin issuers to maintain reserves backing their tokens on a one-to-one basis and limits the types of assets they can hold, including cash, bank deposits and short-term US Treasurys. The law left federal regulators to establish more detailed capital, reserve-diversification and risk-management requirements.
A separate proposal would establish an application process for Fed-supervised banks seeking approval to issue payment stablecoins through subsidiaries, including requirements to submit a business plan and financial information.