Fed proposes stablecoin rules under GENIUS Act
Fed opens draft stablecoin oversight rules to public comment
The U.S. Federal Reserve proposed two rules on Thursday to help put the GENIUS Act into practice. The proposals would set requirements for stablecoins issued by Fed-regulated banks and create procedures for those banks to start issuing them. They are not final and are open for 60-day public comment periods.
What the two proposals would cover
The first proposal covers capital and reserve requirements. Those rules are meant to make sure stablecoins are backed by the most liquid assets and that issuers have a solid foundation during periods of stress. It also outlines stablecoin activities that supervised banks may conduct and includes rules on stablecoin rewards.
The second proposal sets out how a regulated bank can begin issuing stablecoins. It says a bank would need to provide information such as a business plan, financial information, relevant policies, procedures and other documents.
The Fed's language on rewards and the OCC match
The GENIUS Act bans issuers from paying interest or yield for holding stablecoins. The Fed said: “Under the proposal, certain types of arrangements involving third parties would be presumed to be prohibited payments of interest or yield.” The central bank added that its approach is consistent with policies already suggested by the Office of the Comptroller of the Currency.
CoinDesk interpreted the non-final Fed and OCC language as allowing crypto platforms to offer stablecoin rewards in a very narrow way, similar to credit-card incentive programs. That reading is not a final rule.
What is confirmed, and what remains open
The source confirms that the Fed released two proposed rules, that they address part of the multi-agency task under the GENIUS Act, and that other federal agencies are still working on their parts of stablecoin regulation. It also confirms that the GENIUS Act required banking regulators and the Treasury Department to put regulations in place by July 2026, a deadline the agencies are now past.
Still open are the final wording of the rules, the exact scope of allowed reward arrangements, and how long regulators will need after the comment process to publish final versions. The report says proposed rules usually require several months before becoming final, sometimes much longer.
Why this matters for stablecoins and banks
The Fed's proposals would help create the legal safety net behind stablecoins and lay out how banks under its supervision can enter the stablecoin market. They also address the primary U.S. law governing stablecoin rewards after attempts to revise it through the Digital Asset Market Clarity Act did not succeed.
Next step after the proposals
After the public comment period, the Federal Reserve can revise the proposed rules and publish them in final form.
CoinDesk reporting and Fed links
CoinDesk, ‘U.S. Federal Reserve moves on proposals to implement GENIUS Act for stablecoins,’ with links to Federal Reserve press releases and proposed rules.
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