BREAKING: The Fed has proposed its GENIUS Act rules

The Fed has proposed its GENIUS Act rules, requiring stablecoins it oversees to be fully backed by Treasury bills and other high-quality assets.

Proposal one:
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• Stablecoins must be fully backed by permissible reserves, such as short-term Treasury bills and other high-quality, liquid assets.
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• Issuers face standardized capital requirements covering credit and operational risks, plus risk management standards.
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• New rules cover firms that safekeep stablecoin reserves, and clarify which stablecoin activities Fed-supervised banks can carry out.
  
  Proposal two:
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• Fed-supervised banks applying to issue stablecoins must submit a business plan and financial information.
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• The proposal also sets a process for appeals, hearings and final decisions on applications.
  
  "Stablecoins will only be stable if they can be reliably and promptly redeemed at par in a range of conditions," says Fed Governor Michael Barr.
  
  The comment period closes 60 days after publication in the Federal Register.