Fed Seeks Comment on Two GENIUS Act Stablecoin Proposals

Fed Seeks Comment on Two GENIUS Act Stablecoin Proposals

Key Takeaways

• The Federal Reserve has requested public comment on two proposed frameworks for payment stablecoin issuers it supervises under the GENIUS Act.
• One proposal addresses reserve backing, capital, risk management, safekeeping and banks’ related activities; the other sets an application process for supervised banks seeking to issue stablecoins through subsidiaries.
• The proposals are not final rules. The comment period will close 60 days after publication in the Federal Register.

Details

On September 24, the Federal Reserve Board opened comment on two proposals to implement parts of the GENIUS Act for Board-supervised payment stablecoin issuers. The first would require full backing with permitted reserve assets, including short-term Treasury bills and certain other high-quality liquid assets. It would also set standardized capital requirements for credit and operational risks, establish risk-management standards, cover firms that safeguard backing assets, and clarify which stablecoin-related activities supervised banks may conduct.

The second proposal concerns how a Board-supervised bank could apply to issue payment stablecoins through a subsidiary. Applicants would provide a business plan and financial information, among other materials. The proposal also outlines appeals, hearings and final application decisions.

Market Analysis

The proposals separate two regulatory questions: the ongoing standards for supervised stablecoin activity and the path a supervised bank would follow to seek approval for issuance through a subsidiary. That distinction matters for firms assessing the scope of the proposal: neither framework should be treated as a final operating requirement while the comment process is open.

Governor Michael Barr supports the rulemaking but said public input should test whether the proposed framework adequately addresses interest-rate and foreign-currency risks, and whether redemption rights are clear. Those are his views on the proposal, not final Board determinations.

The next steps are publication of the notices in the Federal Register, the comment period and the Board’s consideration of feedback. The Federal Reserve says comments close 60 days after Federal Register publication; an exact calendar deadline should be taken from that publication.

Sources

• Federal Reserve Board proposal announcement, September 24, 2026.
• Governor Michael S. Barr’s statement on the proposed framework, September 24, 2026.
• Reuters report, syndicated by MarketScreener, September 24, 2026.

Prepared with AI assistance from published regulatory materials. This article is for news reporting purposes only and does not constitute investment advice.