The Federal Reserve took swift action by releasing two proposed supervisory rules under the GENIUS Act on September 24, 2026. The central bank’s decision came exactly one week after the US Senate failed to pass the Digital Asset Market Clarity Act crypto regulation. The Fed’s two new draft rules establish strict requirements for stablecoin reserve assets while detailing the approval process for banks seeking to become issuers.
The first proposal establishes new obligations regarding asset backing. Institutions supervised by the Fed must hold a portfolio that fully backs the amount of stablecoins in public circulation. Fractional reserve practices are no longer permitted, and all tokens must comply with a one-to-one full-backing requirement.
To minimize default risk, the types of collateral are also restricted. Issuers are only permitted to hold short-term US government bonds or T-bills, alongside select other high-quality liquid assets. In addition to reserve composition, the first rule imposes standardized capital requirements to ensure firms maintain financial resilience during credit or operational crises.
Issuance Must Go Through Subsidiaries
The focus of the second proposal shifts to the licensing framework for insured state member banks. Banking institutions are barred from issuing stablecoins directly through their primary parent companies. Banks must apply for separate regulatory approval and conduct all token-minting operations through dedicated subsidiaries.
This structural separation carries direct consequences for token holders. The draft document emphasizes that payment stablecoins will not be classified as insured bank deposits. Should an issuing institution fail, user funds will not be covered by federal deposit insurance.
Implementation Timeline Remains Uncertain
The Fed’s two supervisory regulations remain in draft proposal form. The central bank opened a 60-day public comment period to gather market feedback, though the countdown does not automatically begin on September 24. The consultation period will only take effect once the official notice is published in the Federal Register.
In its initial release, the monetary authority did not set a calendar deadline for the publication of the document in the government journal. This window gives stablecoin issuers a tangible opportunity to adjust their T-bill reserve allocations before the GENIUS Act supervisory rules become officially binding.
Reported via crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
