Fed Seeks Public Comment on Stablecoin Issuer Rules

The Federal Reserve Board is seeking public input on two proposals that would help shape how it supervises payment stablecoin issuers, part of the effort to build a regulatory framework under the GENIUS Act.

The proposals concern issuers that fall within the Board's supervisory reach. The central bank's notice solicits views from the public before the measures are finalized, a standard step in the federal rulemaking process that gives market participants, industry groups and others a chance to respond. The comment window builds a record of concerns before the agency commits to binding rules.

Stablecoins are digital tokens meant to hold a steady value, usually tied to the US dollar, and they have grown into a widely used channel for moving funds. The GENIUS Act set out a federal structure for payment stablecoin issuers, dividing oversight among regulators and giving the Fed a role over the institutions it supervises.

Feedback gathered during the comment period is expected to inform the final shape of the rules. How the framework treats reserves, redemption and supervision will matter for banks and nonbank firms looking to issue stablecoins under the new regime.