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The Federal Reserve introduced fresh guidelines for stablecoin creators, encompassing reserve-asset caps and uniform capital rules, as the monetary authority moves further forward with enacting federal stablecoin legislation endorsed by President Donald Trump during the previous year.
On Thursday, the central institution suggested that payment stablecoin providers must fully support their stablecoins using short-term Treasury securities or alternative extremely liquid instruments. The Fed likewise suggested establishing uniform capital mandates alongside protocols for risk management. Finally, the updated modifications would introduce a dedicated application workflow for board-supervised financial institutions wishing to request authorization to launch such stablecoins.
The Federal Reserve alongside nationwide authorities have been laboring to enforce the Guiding and Establishing National Innovation for U.S. Stablecoins, or GENIUS legislation ever since Trump enacted it last year. The legislation establishes a federal oversight system for stablecoins, which includes mandating that stablecoins remain entirely backed by U.S. dollars or equivalently liquid assets alongside compulsory yearly audits.
An initial deadline was originally fixed for July, though agencies frequently require additional time to roll out fresh regulations. The GENIUS Act features an implementation date of January 2027.
Federal Reserve Governor Michael Barr, who previously expressed reservations concerning the GENIUS legislation, stated that he backed the newest measure, yet noted he wished to witness greater efforts directed toward bank anti-money laundering measures.
In particular, Barr mentioned he desires a benchmark “that would prevent the Board from undertaking a supervisory or enforcement action related to an anti-money laundering deficiency unless the issue identified is a ‘significant or systemic’ issue.”
“As is the case on the Board’s July proposal, I am concerned that the ‘significant or systemic’ standard may have unknown effects on the Board’s ability to effectively substantiate that an institution establishes and maintains compliant programs,” Barr stated.
Originally published at https://www.theblock.co/news/regulation/2026-09-24-fed-proposes-reserve-limits-capital-standards-stablecoin-issuers-genius-act-416336.
