The Federal Reserve has proposed capital requirements, a two-day redemption window and new reserve disclosure rules for stablecoin issuers under its supervision as it moves to implement the GENIUS Act. Capital requirements vary by outstanding amounts: 2% for the first $20 billion, 1.5% for the next $30 billion and 1% above $50 billion. Issuers must publish monthly reports on their outstanding stablecoins and reserves, examined by a registered accounting firm and certified by their CEO and CFO. The proposals, open for public comment for 60 days, will take effect on January 18, 2027, or 120 days after final rules are published, whichever is earlier. Fed Governor Michael Barr supported the proposal while emphasizing the need for universal redemption rights and expressing concerns about interest-rate and foreign-currency risks.
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