US regulatory agencies missed a rule-making deadline under the GENIUS Act, a year after the law was signed.
The US Federal Reserve Board has requested public comment on two proposals for establishing a regulatory framework for supervised payment stablecoin issuers under the GENIUS Act.
The first would require issuers to fully back their stablecoins with reserve assets, including short-term Treasury bills and other high-quality, liquid assets, according to a release issued by the Fed on Thursday. It would also standardize capital requirements to address credit and operational risks and set risk-management standards.
The second proposal would establish an application process for banks seeking to issue payment stablecoins, requiring them to submit business plans and financial information. The proposal would also create a process for appeals, hearings and final determinations for applications.
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cointelegraph.com