The Federal Reserve Board on Thursday requested public comment on two proposals related to establishing a regulatory framework for Board-supervised payment stablecoin issuers under the GENIUS Act. The GENIUS Act, signed into law in July 2025, established the first comprehensive federal regulatory framework for payment stablecoins — digital assets designed to maintain a stable value relative to the U.S. dollar and to be redeemable at their stated value. The Federal Reserve's proposals are the implementing rules for the banking organizations it directly supervises, meaning how the new framework works in practice will hinge on the details set out in rulemakings like these.

The announcement was published at 2:30 p.m. EDT on September 24, 2026, and is available on the Federal Reserve's official press release page.

First Proposal: Reserve Backing, Capital, and Risk Management

The first proposal would require that Board-supervised payment stablecoin issuers fully back their stablecoins with certain permissible reserve assets, such as short-term Treasury bills and certain other high-quality, liquid assets. That backing requirement is the cornerstone of the GENIUS Act, which requires payment stablecoins to be backed one-to-one by high-quality liquid reserves so that each coin outstanding can be redeemed at face value.

The proposal would also establish standardized capital requirements to address certain credit and operational risks of payment stablecoin activities, as well as risk management standards, in accordance with the law. Separately, it would introduce rules for Board-supervised firms that safekeep the assets backing payment stablecoins, and it would clarify the permissibility of stablecoin and related activities for Board-supervised banks — giving institutions under Federal Reserve supervision a defined basis for issuing stablecoins and offering related services.

Second Proposal: Application Process for Bank Issuers

The second proposal would establish a tailored application process for Board-supervised banks applying to issue payment stablecoins. Board-supervised banks are institutions for which the Federal Reserve serves as the primary federal supervisor, such as state member banks and holding companies. Because the proposal creates an application process rather than automatic eligibility, each applicant's business plan and financial condition would be reviewed before approval. These applicants would be required to submit a business plan and financial information, among other documents. The proposal would also create a process governing appeals, hearings, and final determinations for applications.

Comment Period and Related Materials

The comment period will close 60 days after publication in the Federal Register. Public comment is a standard step in federal rulemaking: once the window closes, the Board reviews submissions before deciding whether to finalize, revise, or withdraw the proposals. The related Federal Register notices are dated September 29, 2026, which would place the close of the 60-day window in late November 2026. Any subsequent final rules would set the operating requirements Board-supervised issuers must meet under the Act.

The Board released supporting documents alongside the announcement, including two board memos (PDF, PDF), a Federal Register notice on application procedures for Board-supervised insured depository institutions seeking approval for a subsidiary to issue payment stablecoins, and a Federal Register notice on implementing the Federal Reserve Board's responsibilities under the GENIUS Act. The Board also published a statement by Governor Barr and its Board Votes record.

For media inquiries, the Board directed reporters to contact its press office by email or by phone at (202) 452-2955.

The full press release is available on the Federal Reserve's website.