Summary
- The Federal Reserve said it had released two proposals and begun gathering feedback to build a regulatory framework for stablecoin issuers of payment tokens under the GENIUS Act.
- The first proposal would require stablecoin issuers under Fed supervision to fully back issuance with permitted high-liquidity assets such as short-term U.S. Treasuries and comply with standardized capital requirements and risk-management standards.
- The second proposal sets out a separate application process for banks to issue stablecoins, including the submission of business plans and financial information, as well as appeal and hearing procedures.
Forecast Trend Report by Period
The Federal Reserve has moved to draw up follow-on rules to implement the GENIUS Act, the U.S. stablecoin law.
On September 26, the Fed said it had released two proposed rules to build a regulatory framework for payment stablecoin issuers under the GENIUS Act and had begun soliciting public comment.
The first proposal would require stablecoin issuers supervised by the Fed to fully back their outstanding issuance with permitted high-liquidity assets such as short-term U.S. Treasuries. It also would establish standardized capital requirements and risk-management standards to address credit and operational risks. The proposal includes rules for Fed-supervised institutions that hold reserve assets.
The second proposal would create a separate application process for banks seeking to issue stablecoins. Banks that want to issue the tokens would be required to submit business plans and financial information to the Fed. The framework also includes procedures for appeals and hearings on application decisions.
The Fed will accept comments from market participants and others for 60 days after the two proposals are published. The GENIUS Act was enacted in July last year and established a federal regulatory framework for U.S. payment stablecoins.
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.