On September 24, 2026, the Federal Reserve requested public comment on two proposals implementing its responsibilities under the GENIUS Act for Board-supervised payment stablecoin activity. The first would require issuers to fully back stablecoins with permissible reserve assets, including short-term Treasury bills and other specified high-quality liquid assets, and would establish capital requirements addressing certain credit and operational risks, together with risk-management standards.
The proposal would also address safekeeping of reserve assets and clarify the permissibility of stablecoin-related activities for Board-supervised banks. The second proposal establishes application procedures for Board-supervised insured depository institutions seeking approval for a subsidiary to issue payment stablecoins. Applications would include business plans, financial information, and other documentation, with procedures for appeals, hearings, and final determinations.
Both measures remain proposals, and comments are due 60 days after publication in the Federal Register. The announcement does not identify a calendar deadline, detailed capital ratios, or approval of any particular issuer. For banks, fintech sponsors, and cross-border payment businesses, the proposals provide a framework to assess prospective reserve, custody, capital, and authorization requirements, without treating those requirements as final.
Source: Federal Reserve Board