Federal Reserve opens comment on two GENIUS Act stablecoin oversight proposals

The Federal Reserve Board has issued two consultation proposals aimed at building a regulatory framework for payment stablecoin issuers it supervises, following the passage of the GENIUS Act. The first proposal sets out reserve-backing requirements, mandating that supervised issuers hold permissible assets such as short-term Treasury bills and other high-quality, liquid instruments. It also introduces standardised capital requirements to address credit and operational risks, risk management standards, and separate rules for supervised firms that safekeep stablecoin reserve assets. Additionally, it would clarify which stablecoin-related activities Board-supervised banks may lawfully conduct.

The second proposal establishes a tailored application process for Board-supervised banks seeking approval to issue payment stablecoins. Applicants would need to submit a business plan and financial information alongside other specified documents, and the framework would include a formal process for appeals, hearings, and final determinations. Both proposals enter a public comment period that closes 60 days after publication in the Federal Register.

For operators already building or planning stablecoin infrastructure under Federal Reserve supervision, these proposals define the compliance perimeter they will need to price into product architecture and capital planning. Reserve composition, safekeeping arrangements, and the application pathway are all in scope for comment, making this a material opportunity to shape the final ruleset before it binds. The 60-day window is a working deadline, not a formality.