September 24, 2026

Federal Reserve Board requests public comment on two proposals related to establishing a regulatory framework for Board-supervised payment stablecoin issuers under the GENIUS Act

WASHINGTON — In a move that marks a significant step forward for the integration of digital assets into the mainstream financial system, the Federal Reserve Board on Thursday formally requested public comment on a pair of comprehensive regulatory proposals. The initiative is designed to establish a robust oversight framework for Board-supervised payment stablecoin issuers, operating under the statutory authority granted by the GENIUS Act.

Released to the public at 2:30 p.m. EDT, the dual announcements outline sweeping requirements aimed at ensuring financial stability, protecting consumers, and mitigating potential risks stemming from the rapidly growing digital currency sector. As payment stablecoins—digital assets typically pegged to the value of fiat currency, most commonly the U.S. dollar—gain wider traction across commerce and financial markets, federal regulators are moving swiftly to establish clear rules of the road for their issuance, backing, and operational management.

The first of the two proposals focuses heavily on the structural integrity of payment stablecoins themselves. Under the terms of the draft rule, Board-supervised payment stablecoin issuers would be legally mandated to fully back their circulating digital tokens with a dedicated portfolio of permissible reserve assets. These assets would be strictly limited to high-quality, highly liquid instruments designed to withstand sudden liquidity crunches, with short-term U.S. Treasury bills and comparable low-risk financial instruments forming the backbone of the required reserves.

Beyond full asset backing, this inaugural proposal seeks to introduce standardized capital requirements tailored specifically to address the unique credit and operational risks associated with payment stablecoin activities. In strict accordance with the mandates laid out in the GENIUS Act, the proposal also outlines rigorous risk management standards that issuers must adopt and maintain. These standards are intended to ensure that institutions handling stablecoins possess the technological infrastructure, internal controls, and liquidity planning necessary to operate safely during periods of severe market stress.

Significantly, the first proposal extends its regulatory reach beyond the issuers themselves, introducing a novel set of rules explicitly governing Board-supervised firms that act as custodians for the assets backing payment stablecoins. By regulating the safekeeping of these underlying reserves, the Federal Reserve aims to eliminate potential vulnerabilities in the custody chain. Furthermore, the proposal seeks to bring much-needed regulatory clarity by explicitly outlining the permissibility of stablecoins and related digital asset activities for traditional banking institutions under the direct supervision of the Board. This clarification is expected to provide financial institutions with the legal certainty they need to safely engage with emerging blockchain-based payment technologies.

While the first proposal addresses the ongoing operational and backing requirements of stablecoin issuance, the second proposal targets the preliminary gateway: the application process itself. Under this second regulatory framework, the Federal Reserve would establish a tailored, rigorous application process specifically designed for Board-supervised banks seeking authorization to issue payment stablecoins.

Institutions wishing to enter the stablecoin market would not be subjected to a generic chartering procedure; instead, they would be required to navigate a specialized pathway. Applicants under this proposed rule would be mandated to submit a comprehensive business plan, detailed financial information, and a host of supporting documentation designed to demonstrate their operational readiness, financial resilience, and compliance capabilities. Additionally, the proposal establishes a transparent, formal process governing appeals, administrative hearings, and final determinations for all submitted applications, ensuring that institutions receive a structured review and due process regarding their digital asset ambitions.

With the release of these detailed blueprints, the Federal Reserve is opening the floor to broad industry participation, inviting feedback from traditional financial institutions, fintech companies, consumer advocates, cryptocurrency firms, and the general public. Stakeholders and interested parties will have a limited window to review the complex text of both proposals. The public comment period is officially scheduled to close exactly 60 days following the official publication of the documents in the Federal Register.

Federal regulators anticipate a high volume of commentary from various sectors given the high stakes and the transformative nature of the digital asset landscape. The feedback gathered during this 60-day window will be meticulously reviewed and considered by the Board as it works toward finalizing the regulatory framework mandated by the GENIUS Act.

For members of the media seeking further information, clarification, or official statements regarding the newly announced proposals, the Federal Reserve Board has directed inquiries to be sent via email to designated press contacts or through telephone communications at (202) 452-2955.

Last Update: September 29, 2026