Fed opens comment on two GENIUS Act rules for Board-supervised stablecoin issuers

The Federal Reserve has put out two proposals building the framework for payment stablecoin issuers it supervises under the GENIUS Act. One covers reserve backing, capital, risk management and custody of backing assets; the other sets a tailored application, appeals and hearing process for banks seeking to issue. Comment runs 60 days from Federal Register publication. This segment covers what each proposal binds and where the pressure points sit.

• First proposal requires full reserve backing with permissible assets, standardized capital for credit and operational risk, and custody rules for backing assets.
• Second proposal sets a tailored application process for Board-supervised banks to issue stablecoins, with appeals, hearings and final determinations.
• Comment period closes 60 days after publication in the Federal Register; Governor Barr issued a separate statement.