WASHINGTON — Payment stablecoin issuers supervised by the Federal Reserve would have to fully back their tokens with approved assets under one of two proposals the central bank issued Thursday to implement the GENIUS Act.
The first proposal would permit reserves such as short-term Treasury bills and other high-quality, liquid assets. It also would set capital requirements to address certain credit and operational risks, establish risk management standards and introduce rules for Fed-supervised firms that safeguard stablecoin reserves. The Fed said it would clarify which stablecoin-related activities are permissible for banks it supervises. federalreserve.gov
The second proposal would create what the Fed called a “tailored application process” for Fed-supervised banks seeking approval to issue payment stablecoins. Applicants would have to provide a business plan, financial information and other documents. The proposal also outlines procedures for appeals, hearings and final decisions. federalreserve.gov
Both proposals are open for public comment. The comment period will close 60 days after their publication in the Federal Register, the Fed said
