The Federal Reserve Board is seeking public comment on two regulatory proposals for payment stablecoins under the GENIUS Act. The first would require that banks and other payment stablecoin issuers fully back their digital assets with high-quality reserve assets such as short-term Treasury bills, and establish standardized capital requirements to address credit and operational risks.
The proposal would also establish rules for firms that safekeep the assets backing the stablecoins and clarify which stablecoin activities are permissible for banks.
The second proposal would create a tailored application process for banks seeking approval to issue payment stablecoins. Applicants would be required to submit business plans and financial information, with a process for appeals, hearings, and final determinations.
The public comment period closes 60 days after publication in the Federal Register.