By Hannah Lang Sept 24 (Reuters) – The US Federal Reserve on Thursday proposed new rules for issuers of dollar-backed cryptocurrency tokens known as stablecoins, as required by last year’s GENIUS Act, which established a federal regulatory framework for the tokens. • Under the proposal, the Fed would require that payment stablecoin issuers under its […]
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US Federal Reserve proposes new stablecoin rules
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By Hannah Lang
Sept 24 (Reuters) – The US Federal Reserve on Thursday proposed new rules for issuers of dollar-backed cryptocurrency tokens known as stablecoins, as required by last year’s GENIUS Act, which established a federal regulatory framework for the tokens.
• Under the proposal, the Fed would require that payment stablecoin issuers under its supervision fully back their tokens with certain reserve assets, such as short-term Treasury bills
• The proposal would also impose capital requirements on stablecoin issuers to address certain credit and operational risks
• If enacted, the new rules would introduce guidelines for Fed-supervised banks that custody reserves on behalf of stablecoin issuers
• The proposal would also outline stablecoin-related activities Fed-supervised banks can engage in, and would establish a tailored application process for banks that want to issue their own stablecoins
• The Fed will accept comment on the proposed new rules for 60 days after they are published in the Federal Register
(Reporting by Hannah Lang in New York; Editing by Jonathan Spicer )