The US Federal Reserve Board has initiated a public comment period regarding two new regulatory proposals for payment stablecoin issuers. These measures fall under the requirements of the GENIUS Act, which was signed into law by President Donald Trump on July 18, 2025, to establish a federal framework for the sector.
The first proposal mandates that issuers maintain full backing for their stablecoins using high-quality, liquid assets, such as short-term Treasury bills. Additionally, it aims to standardize capital requirements to mitigate operational and credit risks, while also setting specific standards for risk management.
The second proposal outlines a formal application process for banking institutions that intend to issue payment stablecoins. Banks will be required to provide detailed financial information and business plans. The framework also introduces procedures for hearings, appeals, and final regulatory determinations.
The public comment period for these proposals will remain open for 60 days following their publication in the Federal Register. This move follows reports from July 2026 indicating that US regulatory agencies had previously missed the initial rule-making deadlines established by the GENIUS Act.
