Federal Reserve Proposes Rules to Implement GENIUS Act for Stablecoins

The U.S. Federal Reserve has proposed two key rules to implement its responsibilities under the GENIUS Act, advancing the regulatory framework for stablecoin issuers.

The proposals, published on Thursday, are now open for a 60-day public comment period. They represent the Fed’s contribution to the multi-agency effort required to establish comprehensive oversight for stablecoins under the Guiding and Establishing National Innovation for U.S. Stablecoins Act.

One of the proposed rules specifically addresses stablecoin rewards or yield programs, a topic that has been a point of controversy. The central bank stated its intention to align its policies closely with those already suggested by the Office of the Comptroller of the Currency (OCC).

The Fed’s move follows actions by other federal agencies that are collectively working to finalize the stablecoin regulations mandated by the GENIUS Act, which was passed last year. The rules aim to establish a legal safety net for the operation of dollar-pegged digital assets.