The Fed unveils stablecoin proposals, including requiring some issuers to fully back tokens with permissible reserve assets, such as short-term Treasury bills (Megan Howard/Bloomberg)

The Federal Reserve Board is seeking public feedback on proposals aimed at establishing a regulatory framework for payment stablecoin issuers under the GENIUS Act, according to a press release issued on September 24. Two notices of proposed rulemaking have been released, with public comment open for 60 days following their publication in the Federal Register.

These proposals cover various aspects of the stablecoin landscape, including the requirement that issuers back their stablecoins with permissible reserve assets, standardized capital requirements to mitigate credit and operational risks, risk management standards, rules for firms entrusted with safeguarding the backing assets, and a tailored application process for banks seeking to issue payment stablecoins.

Additionally, the proposal outlines a process for handling appeals, hearings, and final determinations regarding these applications. Federal Reserve Board Governor Michael S. Barr emphasized the importance of gathering public input on the proposed reserve asset limitations, capital requirements, and the overall adequacy of the rule in addressing interest rate and foreign currency risks, noting that further work will likely be necessary to ensure stablecoins function as reliable payment instruments.

President Donald Trump signed the GENIUS Act into law in July 2025, marking the United States' first-ever legislation specific to cryptocurrency. The Office of the Comptroller of the Currency is set to finalize a rule implementing the GENIUS Act by November, and the Treasury Department is also soliciting comments on its proposed framework for determining when a payment stablecoin issuer must obtain a GENIUS Act license and the conditions under which payment stablecoins can be offered and sold in U.S. markets.