The Federal Reserve released two stablecoin proposals September 24 under the GENIUS Act. One would require payment-stablecoin issuers supervised by the Board to fully back their coins with eligible reserve assets, including certain short-term Treasury bills and other liquid assets. It would also set standardized capital and risk-management standards. Those are proposals, not a declaration that a buyer's particular stablecoin already satisfies them.
A separate proposal would set an application process for Board-supervised banks seeking approval to issue payment stablecoins. Applicants would submit a business plan and financial information, with procedures for appeals and decisions. The Fed also proposes rules for supervised firms safeguarding reserve assets and clarification of bank stablecoin activities.
The Fed says comments close 60 days after publication in the Federal Register, rather than giving a fixed date in its September 24 release. A stablecoin holder should check who issues the token, what claims the holder has against that issuer and the current reserve disclosures. Do not treat a proposed federal framework as deposit insurance, an investment return or a guarantee that one token can always be redeemed at par.