Federal Reserve seeks comment on stablecoin issuer rules under GENIUS Act

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Fed comment on stablecoin rules

Highlights

Federal Reserve Board proposed that supervised payment stablecoin issuers must fully back tokens with high-quality, liquid reserve assets such as short-term Treasury bills.
The second proposal establishes a formal application process for banks issuing payment stablecoins, requiring business plans, financial disclosures, and setting procedures for appeals and hearings.
GENIUS Act, signed July 18, 2025, advances a comprehensive U.S. regulatory framework for stablecoins, with public comment on new rules due within 60 days of Federal Register publication.

Proposed framework for issuers

As reported by Cointelegraph, citing the Federal Reserve Board, the first proposal requires supervised payment stablecoin issuers to fully back their tokens with reserve assets including short-term Treasury bills and other high-quality, liquid assets.

It also standardizes capital requirements to address credit and operational risks and sets risk-management standards for issuers operating under the new federal regime.

The second proposal creates an application process for banks seeking to issue payment stablecoins. Banks would need to submit business plans and financial information, while the framework also establishes procedures for appeals, hearings and final determinations on applications.

The public comment period closes 60 days after publication in the Federal Register.

Stablecoin oversight moves toward implementation

The proposals mark another step in putting into effect the first comprehensive federal regulatory framework for stablecoins in the U.S. The GENIUS Act was signed into law by President Donald Trump on July 18, 2025.

Cointelegraph reported in July that U.S. regulatory agencies had missed a rule-making deadline under the law, despite publishing proposed rules and collecting public feedback during the preceding year. No final regulations were issued before that deadline, leaving the latest Federal Reserve action as a key move toward a more defined compliance framework for crypto-linked payment issuers.

Circle’s leadership transition at the USDC stablecoin issuer highlighted how closely governance and executive continuity are watched in the stablecoin market. Our publication previously noted that Circle’s CFO Jeremy Fox-Geen plans to step down, while staying in the role through end-2026 (or until a successor is appointed), alongside board changes framed as an orderly refreshment as the company builds on its recent IPO and scale.

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