Federal Reserve Proposes Stablecoin Reserve and Capital Rules Under GENIUS Act

Reserve and Capital Requirements

The Fed's first proposal would require Board-supervised payment stablecoin issuers to hold reserves entirely in permissible assets such as short-term Treasury bills and other high-quality, liquid holdings. It would also establish standardized capital requirements to address credit and operational risks, set risk-management standards, and lay out rules for firms that safekeep the assets backing the tokens.

The framework targets issuers already under Fed supervision. By mandating full backing in safe assets, regulators aim to anchor stablecoin value and mitigate systemic risk. This moves beyond earlier guidance and codifies expectations into formal rulemaking.

Application Process for Bank Issuers

The second proposal would create a tailored application process for Board-supervised banks seeking to issue payment stablecoins, requiring them to submit a business plan and financial information. The process establishes a gatekeeping mechanism, giving regulators visibility into who enters the market and how they plan to operate.

The comment period closes 60 days after the proposals are published in the Federal Register. That window allows industry stakeholders, legal experts, and the public to weigh in before the Fed finalizes rules.

Broader Regulatory Alignment

The Fed's moves align with parallel efforts across the regulatory landscape. The Office of the Comptroller of the Currency has been racing to finalize its own stablecoin rules by November ahead of a January statutory deadline. The Treasury Department has separately proposed rules that would bar platforms from selling noncompliant stablecoins to U.S. customers.

The Trump administration is increasingly framing dollar-pegged tokens as a tool to extend the dollar's global dominance. This regulatory push reflects that strategic posture — creating a stable, supervised pathway for stablecoin issuance under U.S. oversight.