Washington: The US Federal Reserve has proposed two new regulatory frameworks for payment stablecoin issuers under the GENIUS Act, seeking public comment on rules covering reserve backing, capital requirements, risk management and the process for banks seeking approval to issue stablecoins. The proposals were released on September 24, 2026, as the Federal Reserve moves to implement its responsibilities under the federal stablecoin law.
The proposals are not final rules. The Federal Reserve has opened a public comment process, with comments due 60 days after the proposals are published in the Federal Register.
Fed proposes full reserve backing for stablecoins
Under the first proposal, payment stablecoin issuers supervised by the Federal Reserve would be required to fully back their outstanding stablecoins with permitted reserve assets.
The proposed reserve assets would include short-term US Treasury bills and certain other high-quality, liquid assets. The requirement is designed to establish a framework under which the value of reserve assets covers the value of payment stablecoins issued by supervised firms.
The proposal would also introduce standardised capital requirements for certain credit and operational risks associated with payment stablecoin activities. In addition, supervised issuers would be subject to risk-management standards under the GENIUS Act.
The Federal Reserve is also proposing rules for firms under its supervision that safeguard the assets backing payment stablecoins. The framework would further clarify which stablecoin-related activities would be permissible for banks supervised by the central bank.
New application process for banks
The second proposal focuses on banks supervised by the Federal Reserve that want to issue payment stablecoins.
Under the proposed framework, eligible banks would have to follow a dedicated application process. Applicants would be required to provide information including a business plan and financial details as part of their submissions.
The proposal would also establish procedures covering appeals, hearings and final decisions on applications. This would provide a defined regulatory route for supervised banks seeking approval to establish subsidiaries involved in payment stablecoin issuance.
The Federal Reserve said the proposals are intended to implement its responsibilities under the GENIUS Act and establish the regulatory framework applicable to institutions under its supervision.
GENIUS Act provides the broader legal framework
The proposals are part of the wider implementation of the Guiding and Establishing National Innovation for US Stablecoins Act, commonly known as the GENIUS Act.
The legislation became US federal law on July 18, 2025. The law establishes a federal framework for payment stablecoins and sets requirements concerning permitted issuers and reserve backing.
The Federal Reserve’s latest proposals address the central bank’s responsibilities within that framework. Other US banking regulators have also been working on rules related to implementation of the legislation.
The Federal Reserve’s rulemaking therefore concerns a specific section of the broader stablecoin regulatory system rather than creating a completely separate legal framework.
Public comments will shape the next stage
The Federal Reserve’s proposals will remain subject to public comment before final rules are issued. The comment period will close 60 days after publication of the proposals in the Federal Register.
This means the rules announced on September 24 should be viewed as proposed requirements rather than final regulations. Changes could be made after regulators review comments received from banks, stablecoin issuers, industry participants and other stakeholders.
The distinction is important because the final requirements could differ from the proposals currently released by the Federal Reserve.
What the proposals could mean for banks and issuers
If adopted in substantially their proposed form, the rules would give Federal Reserve-supervised stablecoin issuers a more defined set of requirements covering reserves, capital and risk management.
Banks considering stablecoin issuance would also have a specific regulatory application route, while institutions safeguarding reserve assets would face additional requirements.
For stablecoin issuers, the proposed full-reserve framework would place continued emphasis on the quality and liquidity of assets backing tokens. Short-term Treasury bills and other qualifying liquid assets are specifically identified within the proposal.
The proposals also form part of a broader shift towards formal regulation of digital assets in the US. The GENIUS Act provides the statutory foundation, while agencies such as the Federal Reserve are developing detailed rules for the institutions under their jurisdiction.
Federal Reserve’s next steps
The immediate next step is the public comment process. Once the proposals are published in the Federal Register, stakeholders will have 60 days to submit their views.
The Federal Reserve will then consider the feedback as it works towards final regulations. Until that process is completed, stablecoin issuers and banks should treat the September 24 documents as proposed rules rather than final requirements.
The development marks another stage in the implementation of the GENIUS Act and provides greater detail on how the Federal Reserve intends to oversee payment stablecoin activities under its jurisdiction.