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Reported Sep 24, 2026Quickanomics write-up updated Oct 11, 2026, version 42 min read
Follow the developing storyExpanded original Quickanomics reporting with the source’s material findings, comparisons and qualifications at all three reading depths.
Two GENIUS Act proposals address stablecoin reserves, operational safeguards and applications for issuers overseen by the Fed.
The Federal Reserve has proposed a reserve and risk-management framework for payment-stablecoin issuers under its jurisdiction, alongside a separate rule governing their applications. The September 24 announcement forms part of implementation of the GENIUS Act.
The first proposal would require full backing with permitted high-quality liquid reserve assets, including Treasury securities. This addresses the relationship between tokens outstanding and the assets supporting them.
It also covers capital for credit and operational risks, risk management, the custody of backing assets and permissible bank activities. These are distinct components of the proposed framework. Reserve composition concerns the assets held; custody concerns their safekeeping arrangements; capital and risk-management provisions address the issuer’s exposures and operation.
Treating reserve backing as the entire regulatory proposal would omit these additional safeguards. The announcement describes a framework for the issuer and its activities, as well as a requirement concerning the tokens’ supporting assets.
The second proposal sets out the information and procedures for applications. It includes business plans and financial information, together with a framework for determinations, appeals and hearings.
The application process is a separate question from how an authorised issuer would hold reserves. It governs the regulator’s consideration of a business seeking to undertake the activity, while the operating provisions would govern aspects of its subsequent conduct.
Both rules remain proposals. Comments are due 60 days after their publication in the Federal Register; the press announcement does not itself state the resulting calendar deadline.
The proposed requirements do not establish that any particular token has received approval or that reserve-backed issuance is risk-free. The consultation will determine the final form of the Fed’s implementation framework.
Reports from the same original source are not independent confirmation.
The Federal Reserve proposed two GENIUS Act implementation rules on September 24, 2026 covering payment-stablecoin issuers under its jurisdiction; both remain proposals with comments due 60 days after Federal Register publication.
The Federal Reserve proposed two GENIUS Act implementation rules on September 24, 2026 covering payment-stablecoin issuers under its jurisdiction; both remain proposals with comments due 60 days after Federal Register publication.Federal Reserve Board: 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
One proposal would require full reserve backing with permitted high-quality liquid assets, including Treasury securities, and address capital for credit and operational risks, risk management, custody of backing assets and permissible bank activities.
One proposal would require full reserve backing with permitted high-quality liquid assets, including Treasury securities, and address capital for credit and operational risks, risk management, custody of backing assets and permissible bank activities.Federal Reserve Board: 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
The second proposal sets out an application process with business-plan and financial information, and procedures for determinations, appeals and hearings. Reserve requirements and an application process do not guarantee that every token or issuer is risk-free.
The second proposal sets out an application process with business-plan and financial information, and procedures for determinations, appeals and hearings. Reserve requirements and an application process do not guarantee that every token or issuer is risk-free.Federal Reserve Board: 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
The final rules and approvals for individual issuers are not established.
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