Federal Reserve Seeks Public Input on Stablecoin Issuer Regulations Following GENIUS Act Requirements
Despite the GENIUS Act being enacted a year ago, federal regulatory bodies failed to meet the statutory deadline for implementing necessary regulations.
On Thursday, the United States Federal Reserve Board opened a public consultation period for two separate proposals aimed at creating a regulatory structure for oversight of supervised payment stablecoin issuers in accordance with the GENIUS Act.
According to a statement released by the Federal Reserve on Thursday, the initial proposal would mandate that stablecoin issuers maintain complete backing for their digital assets through reserve holdings, which would include short-duration Treasury bills along with additional high-quality, highly liquid assets. The proposal would further establish uniform capital standards designed to mitigate credit and operational risks while implementing comprehensive risk-management protocols.
The secondary proposal seeks to create a formal application procedure for banking institutions that wish to issue payment stablecoins, obligating them to provide detailed business plans and comprehensive financial documentation. Additionally, this proposal would institute procedures for appeals, formal hearings and ultimate decisions regarding submitted applications.
Public stakeholders will have 60 days following the publication in the Federal Register to submit their comments on the proposals.
As Cointelegraph previously documented in July, federal regulatory authorities in the United States failed to meet the mandated rule-making timeline established under the GENIUS Act, one year following the legislation's enactment.
Although multiple regulatory bodies had published proposed regulations and solicited input from the public throughout the previous year, none of the agencies managed to release finalized regulations prior to the statutory deadline.
The GENIUS Act represents the inaugural comprehensive federal regulatory structure for stablecoins within the United States. President Donald Trump signed the legislation into law on July 18, 2025.