Catenaa, Thursday, September 24, 2026- The Federal Reserve today proposed new reserve, capital and risk-management requirement rule for payment stablecoin issuers as US regulators move closer to implementing the GENIUS Act.
The proposals released early today (Thursday) would require Federal Reserve-supervised stablecoin issuers to fully back their tokens with permitted reserve assets.
Those assets would include short-term US Treasury bills and certain other high-quality, liquid investments. The structure is intended to ensure issuers can meet redemption demands even during periods of market stress.
The Fed also wants standardized capital requirements covering credit and operational risks linked to payment stablecoin businesses. Separate risk-management standards would apply to issuers and firms safeguarding the assets backing the tokens.
The central bank said the rules would also clarify which stablecoin-related activities are permitted for banks under Federal Reserve supervision.
A second proposal would create a formal application process for Fed-supervised banks seeking approval to issue payment stablecoins.
Applicants would have to submit business plans, financial information and other supporting documents. The proposed system also sets procedures for appeals, hearings and final decisions on applications.
The Fed is seeking public comments on both proposals for 60 days after their publication in the Federal Register. The Board approved the proposals without opposition.
The proposals form part of the implementation of the GENIUS Act, the US law establishing a federal framework for payment stablecoins.
The legislation requires permitted issuers to maintain reserves backing outstanding stablecoins and brings issuers under federal or qualifying state supervision.
Stablecoins are digital tokens designed to maintain a fixed value, usually against the US dollar. They are widely used in crypto trading, payments and blockchain-based transfers.
The latest Fed proposal could tighten the type of assets issuers may use to support those tokens while adding another layer of protection through capital requirements.
Federal Reserve Governor Michael Barr supported the proposal but called for further work on anti-money laundering supervision.
Barr said he was concerned about a proposed standard that could limit supervisory or enforcement action over anti-money laundering deficiencies unless regulators determine that the problem is significant or systemic.
He said such a threshold could affect the Fed’s ability to establish whether an institution maintains compliant anti-money laundering programs.
Barr also backed limits on reserve assets and standardized capital requirements, saying reliable redemption at face value remains central to stablecoin stability.
The Federal Reserve and other agencies have been developing rules during 2026 to turn the GENIUS Act into an operational regulatory system.
Earlier rulemaking has also addressed customer identification requirements for permitted stablecoin issuers under the Bank Secrecy Act.
The latest proposals move the sector closer to a system in which stablecoin issuers must meet clearer bank-style standards covering liquidity, capital, risk controls and regulatory approval before operating under Federal Reserve supervision.
