The Federal Reserve has proposed two rules to oversee stablecoin issuers under the GENIUS Act. The first proposal requires payment stablecoin issuers supervised by the Fed to fully back their tokens with approved reserve assets, including short-term US Treasury bills, along with capital requirements and risk management standards. The second proposal establishes the application process for supervised banks seeking to issue payment stablecoins, requiring business plans and financial documents. The public comment period will remain open for 60 days after publication in the Federal Register. Fed Governor Michael Barr emphasized that stablecoins can only remain stable if users can quickly redeem them at full value, even during financial stress.
Source: Read the original article
