On September 24, 2026, the Federal Reserve Board requested public comment on two proposals related to establishing a regulatory framework for Board-supervised payment stablecoin issuers under the GENIUS Act.
Under the first proposal, payment stablecoin issuers supervised by the Board must maintain 100 percent backing of their tokens using permissible reserve assets, including short-term U.S. Treasury bills and comparable low-risk liquid holdings. To comply with statutory requirements, the regulatory framework sets forth uniform capital standards targeting operational and credit exposures, alongside comprehensive risk management protocols. Additionally, the measure outlines operational guidelines for Board-regulated entities providing custodial safekeeping of backing reserves and confirms permissible stablecoin-related operations for supervised banking organizations.
The second proposal details a specialized licensing procedure for Board-supervised institutions seeking authorization to issue payment stablecoins. Submissions must incorporate comprehensive financial projections, a formal business model, and supplementary organizational documentation. Furthermore, this proposal defines structured procedures for administrative hearings, decision appeals, and final agency rulings.
Read the Federal Reserve’s press release here.