The Federal Reserve Board on Thursday released two notices of proposed rulemaking that would set reserve-asset, capital and risk-management standards for payment stablecoin issuers under the GENIUS Act, the agency said in a press release.

Both proposals passed by unanimous board vote and open a 60-day public comment period after publication in the Federal Register, according to the Sept. 24 release.

One proposal would require board-supervised payment stablecoin issuers to fully back their tokens with permissible reserve assets, set standardized capital requirements addressing credit and operational risks, establish risk-management standards, and introduce rules for firms that safekeep stablecoin reserves. It would also clarify which stablecoin activities board-supervised banks may conduct.

The second proposal would create a tailored application process for board-supervised banks seeking to issue payment stablecoins, alongside a separate track governing appeals, hearings and final determinations on those applications.

What do the reserve and capital rules cover?

The reserve framework restricts backing to assets the Fed designates as permissible, a step intended to standardize how issuers match outstanding token supply with liquid instruments. The capital requirements would scale with credit and operational exposures tied to stablecoin operations, drawing on bank-capital constructs but tailored to the activity profile.

The safekeeping provisions target how board-supervised firms custody the underlying reserves, a question that has drawn attention since several major issuers route assets through commercial bank subsidiaries. The permissibility clarification would define which stablecoin activities banks can conduct directly and which must sit in subsidiaries.

What did Fed officials say?

Governor Michael S. Barr, in a statement released Thursday, said public input on reserve-asset limitations and capital requirements would be useful, and asked whether the rule adequately addresses interest rate and foreign currency risk exposures.

"While the board's proposal is an important step in GENIUS Act implementation, further work will undoubtedly be required if stablecoins are to be reliable payment instruments," Barr said.

How does this fit the broader GENIUS Act timeline?

President Donald Trump signed the GENIUS Act into law in July 2025, the first federal crypto statute. Since then, multiple agencies have moved in parallel to implement its provisions across licensing, supervision and reserve composition.

Comptroller of the Currency Jonathan V. Gould said in August that the Office of the Comptroller of the Currency will publish its final rule implementing the GENIUS Act by November, a deadline that would precede the Fed's expected finalization.

The Treasury Department also sought comment in August on a framework determining when payment stablecoin issuers must obtain a GENIUS Act license and how tokens may be offered and sold in U.S. markets.

What changes for issuers?

For board-supervised banks, the application track in the second proposal creates a defined entry point for stablecoin issuance, replacing ad hoc supervisory engagement with a codified review path that includes a hearing and appeal mechanism. For nonbank issuers that come under Fed oversight, the reserve and capital rules set the first quantitative guardrails under the statute.

The Fed will weigh comments across the 60-day window and shape final rules in coordination with the OCC and Treasury, with the OCC's November deadline likely to set the first concrete implementation benchmark for the sector.