Current outcome
The Federal Reserve proposed rules requiring payment stablecoin issuers to fully back tokens with short-term Treasuries or other highly liquid assets and to meet standardized capital requirements, advancing implementation of the GENIUS Act; the proposal also includes a crisis timeline requiring notification within 24 hours and liquidation by the next business day if reserves fall below token value, with continued minting allowed during the rescue window.
Progress timeline
2 material updates- #01
Fed proposes reserve limits, capital standards for stablecoin issuers under GENIUS Act
The Federal Reserve proposed rules requiring payment stablecoin issuers to fully back tokens with short-term Treasuries or other highly liquid assets and to meet standardized capital requirements, advancing implementation of the GENIUS Act, while Governor Michael Barr supported the proposal but called for stronger bank anti-money-laundering oversight.
Source evidence: The Block
- #02
Fed proposed stablecoin rule could trigger a 48-hour liquidation run
The proposed rule's crisis timeline: issuers whose reserves fall below outstanding token value must notify the Fed within 24 hours and begin liquidating reserves and redeeming tokens by 5 p.m. the next business day (under 48 hours), while continuing to mint during the rescue window.
State after update: The Federal Reserve proposed rules requiring payment stablecoin issuers to fully back tokens with short-term Treasuries or other highly liquid assets and to meet standardized capital requirements, advancing implementation of the GENIUS Act; the proposal also includes a crisis timeline requiring notification within 24 hours and liquidation by the next business day if reserves fall below token value, with continued minting allowed during the rescue window.
Source evidence: CryptoSlate