The US Federal Reserve Board has requested input from the public on two proposed frameworks designed to regulate payment stablecoin issuers that fall under the supervision of the GENIUS Act.
Proposals for Stablecoin Regulation
The first proposal would make it mandatory for issuers to fully collateralize their stablecoins with reserve assets such as short-term US Treasury bills and other high-quality, liquid instruments. According to the Federal Reserve, issuers would also need to meet standardized capital requirements intended to address credit and operational risks, and follow set risk-management standards.
The second proposal introduces an application procedure for banks interested in issuing payment stablecoins. This process would oblige applicants to provide detailed business plans and financial data. In addition, it outlines procedures for appeals, hearings, and formal decisions related to such applications.
The Federal Reserve stated that the public comment period for these proposals will remain open for 60 days following their publication in the Federal Register.
GENIUS Act: Background and Implementation
The GENIUS Act, signed into law by US President Donald Trump on July 18, 2025, set up the first comprehensive federal regulatory framework for stablecoins across the United States.
Despite this legislative milestone, key US regulatory bodies were unable to meet the rulemaking deadline stipulated by the act. Over the previous year, several agencies published draft regulations and sought public feedback, but final rules were not finalized in time for the mandated deadline.
The proposals would require issuers to fully back stablecoins with reserve assets such as US Treasury bills, set standards for operational and credit risk management, and create standardized pathways for banks applying to issue payment stablecoins.
Meme Token Market and Investor Trends
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