Federal Reserve proposes two stablecoin rules under GENIUS Act

The U.S. Federal Reserve proposed two rules Thursday to implement its part of the GENIUS Act's stablecoin issuer oversight framework. The proposals are open for 60-day public comment periods. The rules would establish the legal framework for stablecoins issued under the system. The rules would set procedures for Fed-regulated banks to issue stablecoins. The GENIUS Act required U.S. banking regulators and the Treasury Department to establish regulations by July of 2026. The agencies are past that legal deadline. One proposal addresses the law's ban on issuers paying interest or yield to people who hold stablecoins. The Federal Reserve said it sought to closely match the Office of the Comptroller of the Currency's proposed policies on stablecoin rewards.