The Federal Reserve Board is requesting public comment on two proposals related to establishing a regulatory framework for the payment stablecoin issuers it supervises under the GENIUS Act, it said in a Thursday (Sept. 24) press release.
The agency released two notices of proposed rulemaking and will accept comment on them for 60 days after their publication in the Federal Register, according to the release.
One proposal would require that board-supervised payment stablecoin issuers fully back their stablecoins with certain permissible reserve assets, would establish standardized capital requirements to address certain credit and operational risks of payment stablecoin activities, would establish risk management standards, would introduce rules for board-supervised firms that safekeep the assets backing payment stablecoins and would clarify the permissibility of stablecoin and related activities for board-supervised banks, the release said.
The other proposal would establish a tailored application process for board-supervised banks applying to issue payment stablecoins and would create a process governing appeals, hearings and final determinations for applications, per the release.
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The publication of the proposals was approved in unanimous board votes.
Federal Reserve Board Governor Michael S. Barr said in a statement released Thursday that it will be useful to have public input on the proposal’s provisions for reserve asset limitations and capital requirements, and whether the rule adequately addresses interest rate and foreign currency risks.
“While the board’s proposal is an important step in GENIUS Act implementation, further work will undoubtedly be required if stablecoins are to be reliable payment instruments,” Barr said.
When President Donald Trump signed the GENIUS Act into law in July 2025, PYMNTS reported that the event marked the country’s first-ever piece of crypto legislation.
Other federal agencies have been working to implement the GENIUS Act as well.
Comptroller of the Currency Jonathan V. Gould said in August that the Office of the Comptroller of the Currency will have a final rule implementing the GENIUS Act out by November.
The Treasury Department said in August that it was seeking comment on its proposed framework for how to decide when a payment stablecoin issuer needs to obtain a GENIUS Act license as well as when and how payment stablecoins can be offered and sold in U.S. markets.