The Federal Reserve requests public comments on two proposals for stablecoin issuers under the GENIUS Act.

US Federal Reserve Board Requests Public Comment on Two GENIUS Act Stablecoin Proposals for Supervised Payment Stablecoin Issuers and Bank Application Processes

The US Federal Reserve Board has requested public comment on two proposals for establishing a regulatory framework for supervised payment stablecoin issuers under the GENIUS Act. The proposals address reserve backing, risk standards, bank applications and appeal procedures, and the comment period will close 60 days after publication in the Federal Register.

Reserve backing and risk standards in the first proposal

The first proposal focuses on how supervised payment stablecoin issuers would be required to support their stablecoins. It would require issuers to fully back their stablecoins with reserve assets, according to a release issued by the US Federal Reserve Board on Thursday. The release identified short-term Treasury bills and other high-quality, liquid assets as reserve assets contemplated by the proposal.

The proposal also moves beyond reserves alone. It would standardize capital requirements so that issuers are better positioned to address credit and operational risks. In parallel, it would set risk-management standards for supervised payment stablecoin issuers.

For readers, the first proposal is important because it outlines the prudential baseline that issuers would need to meet. The baseline combines full reserve backing, standardized capital rules and formal risk-management expectations.

Bank applications and appeal rights in the second proposal

The second proposal is procedural. It would establish an application process for banks seeking to issue payment stablecoins. Banks that wanted to participate would need to submit business plans and financial information.

The proposal would also create a process for appeals, hearings and final determinations for applications. That means the framework is not only about eligibility documents; it also sets out how applicants could challenge or obtain a final determination on their applications.

This part of the proposals matters because it connects stablecoin issuance to the banking channel. The GENIUS Act framework is being implemented through supervised payment stablecoin issuers, and banks are given a defined path to apply.

The GENIUS Act deadline and the comment process

The GENIUS Act established the first comprehensive federal regulatory framework for stablecoins in the US. It was signed into law by President Donald Trump on July 18, 2025.

Cointelegraph reported in July that US regulatory agencies had missed a rule-making deadline under the GENIUS Act, a year after the law was signed. During the preceding year, several regulatory agencies published proposed rules and collected public feedback. No final regulations were issued before the deadline.

The new US Federal Reserve Board request is therefore another proposed rule stage, not a final regulation. The comment period will close 60 days after publication in the Federal Register.

What readers can watch next

The immediate watch item is the public comment process. Comments may shape how the reserve asset, capital requirement, risk-management standard, bank application, business plan, financial information, appeal, hearing and final determination provisions are written before any later regulatory decision.

The source also included a Cointelegraph Magazine line: "Exchanges reporting crypto gains to the Internal Revenue Service becomes tax nightmare." That item is separate from the US Federal Reserve Board proposals, but it points to another compliance pressure affecting readers who use exchanges and track crypto tax reporting.

The proposals set the next phase of the GENIUS Act implementation: public comment on supervised payment stablecoin issuers and bank application procedures, with the comment period ending 60 days after publication in the Federal Register.