Federal Reserve Opens Comment Period on Stablecoin Reserve Requirements

The Federal Reserve Board opened a 60-day public comment period Thursday for two rulemaking proposals designed to regulate payment stablecoin issuers under the GENIUS Act.

Both notices will appear in the Federal Register and received unanimous approval from board members.

The first proposal addresses core operational requirements for Fed-supervised stablecoin issuers. Under the plan, issuers must fully back their stablecoins with approved reserve assets while meeting standardised capital thresholds to cover credit and operational risks.

Additional provisions include:

• Risk management standards for stablecoin activities
• Rules governing asset custody by supervised firms
• Clarification on which stablecoin activities are permissible for supervised banks

The second proposal creates a tailored application pathway for Fed-supervised banks seeking to issue payment stablecoins. The framework also establishes procedures for appeals, hearings, and final determinations on applications.

Governor Michael S. Barr emphasised in a statement that public feedback will be particularly valuable regarding reserve asset limitations and capital requirements. He noted the need to assess whether the proposal adequately addresses interest rate and foreign currency exposures.

While the board's proposal is an important step in GENIUS Act implementation, further work will undoubtedly be required if stablecoins are to be reliable payment instruments.

President Donald Trump signed the GENIUS Act into law in July 2025, marking the country's first federal cryptocurrency legislation.

Other agencies are progressing with their own GENIUS Act implementation. Comptroller of the Currency Jonathan V. Gould pledged in August to finalise OCC rules by November. The Treasury Department separately opened comment on its framework for determining when stablecoin issuers need a GENIUS Act licence and under what conditions stablecoins can be offered in U.S. markets.