Federal Reserve (FED) · Coinbase · CoinDesk
The second proposal sets out the procedures under which a regulated bank can begin pumping out its own stablecoins
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"Stablecoins will only be stable if they can be reliably and promptly redeemed at par in a range of conditions," said Fed Governor Michael Barr, who ran the Fed's supervision program before the administration of President Donald Trump, in a statement.
Key facts
- The U.S. Federal Reserve proposed two rules on Thursday that would accomplish its part of the multi-agency work needed to establish stablecoin issuer oversight under the Guiding and Establishing
- Stablecoins will only be stable if they can be reliably and promptly redeemed at par in a range of conditions," said Fed Governor Michael Barr, who ran the Fed's supervision program
- Last month, the Treasury Department proposed its own part of the process to implement GENIUS, outlining federal definitions on what it means to issue U.S. stablecoins and who needs to follow
- As stablecoins move into regulated finance, APAC is becoming a key proving ground
Summary
The U.S. Federal Reserve has made two wide-ranging proposals to implement the bulk of its requirements under the GENIUS Act, joining other federal agencies that are still in the middle of the process to finish stablecoin regulations. One piece of the Fed proposals governs controversial stablecoin rewards, and the central bank said it sought to closely match the policies already suggested by the Office of the Comptroller of the Currency. Federal Reserve proposed two rules on Thursday that would accomplish its part of the multi-agency work needed to establish stablecoin issuer oversight under the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. The Fed's regulatory approach also echoes the Office of the Comptroller of the Currency's own proposal where it addressed the law's ban on issuers paying interest or yield for holding stablecoins.