Fed proposes stablecoin rules on reserves and capital

The Federal Reserve proposed two stablecoin rules on Thursday under the GENIUS Act. The first proposal would require Board-supervised payment stablecoin issuers to hold reserves entirely in permissible assets. Those assets could include short-term Treasury bills and other high-quality, liquid holdings. The proposal would set standardized capital requirements for credit and operational risks. It would also set risk-management standards. It would establish rules for firms that safekeep assets backing the tokens. The second proposal would create a tailored application process for Board-supervised banks seeking to issue payment stablecoins. Applicants would submit a business plan. Applicants would also submit financial information. The proposal would establish procedures for appeals, hearings, and final decisions. The comment period would close 60 days after publication in the Federal Register. The rules form part of a multi-agency rollout of the GENIUS Act. President Donald Trump signed the stablecoin law in July 2025. The Office of the Comptroller of the Currency has been racing to finalize its own stablecoin rules by November. The rollout faces a January statutory deadline. The Treasury Department has separately proposed rules that would bar platforms from selling noncompliant stablecoins to U.S. customers. The Trump administration frames dollar-pegged tokens as a tool to extend the dollar's global dominance. The proposals aim to help tokens hold their peg and remain redeemable at face value.