Fed Opens Comment Period on GENIUS Act Framework for Payment Stablecoin Issuers

The Federal Reserve Board said on Sept. 24 it is inviting public feedback on two proposals that would set out how payment stablecoin issuers under Fed supervision are regulated under the GENIUS Act, ME News reported. Under the first proposal, issuers would be required to maintain 100% reserves made up of approved high-quality liquid assets, including short-term U.S. Treasury securities. It would also introduce standardized capital requirements and risk-management expectations aimed at addressing credit and operational risks tied to stablecoin activities. The framework would further outline requirements for Fed-supervised institutions that hold stablecoin reserves and clarify what activities regulated banks may conduct in connection with stablecoin operations. The second proposal would establish a dedicated application pathway for Fed-supervised banks seeking to issue payment stablecoins. Applicants would need to provide business plans, financial documentation, and other materials, and the process would set procedures covering appeals, hearings, and final determinations. The comment period will run through 60 days after the proposals are published in the Federal Register. (Source: BlockBeats)