The Federal Reserve proposed GENIUS Act rules for stablecoin operations, covering backing, capital, risk management and reserve custody. A separate proposal would create an application process for banks seeking permission to use stablecoins.
The rules call for full backing with permitted reserves, including short-term Treasuries and other highly liquid assets, and capital requirements for credit and operational risk. They also address stablecoin activities permitted for supervised banks.
Yahoo Finance host Scott Melker said the Fed had been late to issue the rules, noting that the OCC and FDIC had already done so. He said some observers see the application process as potentially favoring large banks, while smaller banks may struggle to develop rules they can implement.
