The Federal Reserve published on September 24 two proposed rules related to the GENIUS Act, the stablecoin law. The first proposal mandates full backing of tokens with authorized reserve assets, such as short-term Treasury bills, along with standardized capital requirements. The second creates a dedicated licensing pathway for banks seeking to issue payment stablecoins through a subsidiary. These rules apply to bank subsidiaries under federal supervision, while issuers with less than 10 billion dollars in outstanding tokens may opt for state supervision. The public has 60 days to comment on these proposals, which are meant to complement those from the U.S. Treasury before the GENIUS Act takes effect in early 2027.
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