The U.S. Federal Reserve has issued a regulatory proposal requiring stablecoin issuers to hold reserve assets in full. It also set out capital requirements and risk management standards needed to issue stablecoins, and separately presented application procedures for stablecoin issuance by banks under Fed supervision.

The Federal Reserve said on Sept. 24 that it released 2 regulatory proposals and began seeking public comment to establish a regulatory framework for payment stablecoins under the GENIUS Act.

The first proposal would require payment stablecoin issuers supervised by the Fed to fully back the tokens they issue with permitted reserve assets. Permitted reserve assets include short-term U.S. Treasury securities and other high-quality liquid assets.

The Fed also presented standardized capital requirements to address credit and operational risks that could arise in stablecoin businesses. It also set out risk management standards and proposed rules to apply to custodians that hold stablecoin reserve assets. The proposal also covers the scope of stablecoin-related businesses that Fed-supervised banks can conduct.

The second proposal lays out separate procedures to apply when Fed-supervised banks seek approval for subsidiaries to issue payment stablecoins. Applicant banks must submit related materials including business plans and financial information. The procedures also provide for objections to the application outcome, hearings and a final decision. The comment period for the two proposals is 60 days after publication in the Federal Register.

The proposals are follow-up measures under the GENIUS Act signed by U.S. President Donald Trump in July 2025. The GENIUS Act establishes a U.S. federal-level regulatory framework for payment stablecoins and includes provisions requiring issuers to back tokens with permitted reserve assets.

A stablecoin is generally a blockchain-based digital asset designed to link its value to a specific reference asset such as the U.S. dollar. Issuers hold reserve assets and are structured so users can redeem issued tokens at face value. Stablecoins are used not only for virtual asset trading but also for transfers between exchanges, payments and cross-border remittances.

U.S. financial authorities are also continuing regulatory work to implement the GENIUS Act. The Office of the Comptroller of the Currency proposed rules in March on payment stablecoin issuance and related activities under the GENIUS Act, and separately released a proposal in June on anti-money laundering and sanctions compliance. Acting Comptroller Jonathan V. Gould (조나단 굴드) said last month he plans to finalize GENIUS Act rules by November.

The U.S. Treasury is also preparing rules under the GENIUS Act. In August, it released a proposal covering the issuance and sale of payment stablecoins in the United States. The proposal includes details on GENIUS Act requirements for businesses seeking to issue stablecoins in the United States to obtain appropriate federal or state licenses. The Treasury set a 60-day comment period after publication in the Federal Register.

The GENIUS Act is scheduled to take effect on Jan. 18, 2027. If 120 days after major federal stablecoin regulators publish final rules to implement the law comes earlier than that date, that earlier point becomes the effective date under the law.