The Federal Reserve Board opened a public-comment process on 24 September for proposals that would build part of the GENIUS Act framework for payment stablecoin issuers it supervises. The package addresses reserve backing, capital, risk management, safekeeping and bank applications. It is a proposal for comment, not an effective rule or a guarantee about any token. Federal Reserve Board: GENIUS Act payment stablecoin proposals, 24 September 2026
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The proposal spells out how reserves, capital, safekeeping and bank applications may be handled for Board-supervised issuers.
The proposal spells out how reserves, capital, safekeeping and bank applications may be handled for Board-supervised issuers.
Comment feedback and later rulemaking can change scope, implementation details and timing before any requirement takes effect.
The package addresses backing, capital, custody and applications
The Federal Reserve says its first proposal would require Board-supervised payment stablecoin issuers to fully back tokens with permitted reserve assets, including short-term Treasury bills and certain other high-quality liquid assets. It would also establish standardized capital requirements and risk-management standards for credit and operational risks. Federal Reserve Board: GENIUS Act payment stablecoin proposals, 24 September 2026
A separate part would set rules for Board-supervised firms that safekeep assets backing payment stablecoins and clarify the permissibility of related activities for supervised banks. A second proposal would create a tailored application process for supervised banks seeking to issue stablecoins, with business plans, financial information and a route for hearings or appeals. Federal Reserve Board: GENIUS Act payment stablecoin proposals, 24 September 2026
The Board requested public comment. The release says the comment period will close 60 days after publication in the Federal Register. Until a proposal is finalized and its effective dates are known, its requirements should not be described as already binding on issuers. Federal Reserve Board: GENIUS Act payment stablecoin proposals, 24 September 2026
Backing rules are only one part of redemption resilience
Eligible reserve assets, capital and safekeeping rules address different risks. Reserve quality and liquidity can affect how an issuer meets redemptions; capital can absorb specified losses; custody standards address control and operational failures. The proposal treats them as complementary safeguards rather than interchangeable guarantees.
A full-backing requirement does not, by itself, establish how quickly a holder can redeem, what happens during a bank or custodian outage, or how assets are treated in insolvency. Those outcomes depend on the final regulatory text, issuer disclosures, contractual rights and the operational chain that moves cash and tokens.
The scope is limited to Board-supervised firms and the authorities described in the GENIUS Act proposals. Other agencies and other types of stablecoin activity may be addressed through separate rules. The Federal Reserve release does not claim that every dollar-pegged token will follow an identical reserve model. Federal Reserve Board: GENIUS Act payment stablecoin proposals, 24 September 2026
Read the final definitions, asset eligibility and transition dates
During the comment period, watch how the proposal defines eligible reserve assets, valuation and liquidity, how safekeeping rules divide responsibility among issuer and custodian, and what disclosures banks must provide. These details determine how the framework works in practice; the press release’s summary is not the full rule text.
An alternative reading is that the final framework may change after comments, coordination with other regulators or publication of statutory implementation steps. The proposal’s presence does not establish that the Board has approved a particular issuer, token or reserve portfolio.
For a stablecoin review, compare the issuer’s published reserve composition and redemption process with the rules that ultimately take effect. Track the Federal Register notice, the end of the comment period and any final Board action. Keep current operating facts separate from proposed safeguards and from marketing language about stability. Federal Reserve Board: GENIUS Act payment stablecoin proposals, 24 September 2026