Fed proposes full reserve backing for stablecoins under GENIUS Act
- —Stablecoins must be 100% backed by short-term Treasuries and other high-quality liquid assets
- —Standardized capital requirements and risk-management rules for credit and operational risk
- —Fed-supervised banks could issue stablecoins via a subsidiary under a dedicated approval process
- —Comments open for 60 days after Federal Register publication; GENIUS Act effective date is Jan 18, 2027
Why it matters: The rules will shape how major issuers such as Tether and Circle hold reserves and set a benchmark for the entire stablecoin market.
Source: Digital Today