Donald Trump · Federal Reserve (FED) · U.S. Treasury · The Block
Fed proposes reserve limits, capital standards for stablecoin issuers under GENIUS Act
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The Federal Reserve proposed new measures for stablecoin issuers, including reserve-asset limits and standardized capital requirements, as the central bank takes another step toward implementing federal stablecoin law signed by President Donald Trump last year.
Key facts
- The Federal Reserve and federal regulators have been working to implement the Guiding and Establishing National Innovation for U.S. Stablecoins, or GENIUS into law since Trump signed it into law last
- The Federal Reserve proposed new measures for stablecoin issuers, including reserve-asset limits and standardized capital requirements, as the central bank takes another step toward implementing
- On Thursday, the central bank proposed requiring that payment stablecoin issuers fully back their stablecoins with short-term Treasury bills or other highly liquid assets
- The Fed also proposed creating standardized capital requirements and standards to manage risks
Summary
On Thursday, the central bank proposed requiring that payment stablecoin issuers fully back their stablecoins with short-term Treasury bills or other highly liquid assets. The Federal Reserve and federal regulators have been working to implement the Guiding and Establishing National Innovation for U.S. Stablecoins, or GENIUS into law since Trump signed it into law last year. An initial deadline was set for July, but agencies often take longer to implement new rules. Federal Reserve Governor Michael Barr, who has voiced previous concerns about the GENIUS Act, said he supported the latest proposal, but said he wanted to see more done around bank anti-money laundering.