{"id":78619,"date":"2026-09-24T20:52:07","date_gmt":"2026-09-24T20:52:07","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/feds-proposed-stablecoin-rules-put-genius-acts-dollar-test-to-work\/"},"modified":"2026-09-24T20:52:07","modified_gmt":"2026-09-24T20:52:07","slug":"feds-proposed-stablecoin-rules-put-genius-acts-dollar-test-to-work","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/feds-proposed-stablecoin-rules-put-genius-acts-dollar-test-to-work\/","title":{"rendered":"Fed\u2019s Proposed Stablecoin Rules Put GENIUS Act\u2019s Dollar Test to Work"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">The Fed proposes at least $1 in permitted reserves behind every $1 in stablecoins.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Michael Barr wants clear redemption rights and scrutiny of the Fed\u2019s AML threshold.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">The GENIUS Act gives the Fed 120 days to decide complete bank applications.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>The Fed Is Building a Stablecoin Rulebook Down to the Dollar<\/h2>\n<p>Stablecoins have spent years borrowing the language of money. Now the <a href=\"https:\/\/www.federalreserve.gov\/newsevents\/pressreleases\/bcreg20260924a.htm\" target=\"_blank\" rel=\"noopener noreferrer\">Federal Reserve is proposing rules<\/a> that would make some issuers behave a lot more like tightly constrained financial utilities. Under proposals released Thursday to implement the GENIUS Act, Fed-supervised issuers would have to keep at least $1 of permissible reserve assets behind every $1 of payment stablecoins outstanding.<\/p>\n<p>Issuers would need to honor redemptions within two business days and carry standardized capital against operational and certain credit risks. The kicker? Stay deficient on capital long enough, and the proposed rules call for liquidating all reserve assets and redeeming <a href=\"https:\/\/news.bitcoin.com\/what-are-stablecoins-a-simple-explanation-of-the-digital-asset-bridging-crypto-and-fiat\/\">the outstanding stablecoins<\/a>. That\u2019s about as literal as \u201cfully backed\u201d gets.<\/p>\n<h2>Every Dollar Needs a Dollar Behind It<\/h2>\n<p><a href=\"https:\/\/www.federalreserve.gov\/newsevents\/pressreleases\/files\/bcreg20260924a1.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">The mechanics are deliberately boring<\/a>. Reserves could include U.S. dollars, Federal Reserve Bank balances, certain bank deposits, Treasury securities with 93 days or less remaining to maturity, qualifying repurchase agreements, and eligible investment funds. Tokenized versions of some permitted assets could also make the cut. Those reserves would have to remain separate from the issuer\u2019s other assets.<\/p>\n<p>If backing slips below one-to-one, then the issuer would have to tell the Fed. The issuer needs to liquidate reserves and redeem its U.S. dollar-pegged tokens unless it has a plan to restore full backing promptly and the Board directs it to follow that route. Redemption policies, meanwhile, would generally have to promise payment within two business days.<\/p>\n<p>Alongside the backing, a product built around instant digital settlement would still get a two-business-day regulatory redemption window. The Fed also proposes capital charges ranging from 2% on the first $20 billion of outstanding stablecoins to 1% on amounts above $50 billion, alongside other <a href=\"https:\/\/news.bitcoin.com\/anti-innovation-experts-slam-nigerias-disproportionate-capital-requirements-for-crypto-firms\/\">capital requirements<\/a>. If an issuer remains below its minimum capital requirement at the end of the following quarter, then it would have to liquidate its reserves and redeem its coins.<\/p>\n<h2>Banks Get a 120-Day Clock<\/h2>\n<p>A companion proposal lays out how insured state member banks could seek Fed approval for subsidiaries that issue payment stablecoins. Applicants would submit a business plan, financial information, policies, capital documentation and other materials. Financial projections would cover the first three years of operations.<\/p>\n<p>Here\u2019s where it gets interesting. Once an application is deemed substantially complete, <a href=\"https:\/\/news.bitcoin.com\/fidelity-debuts-genius-act-aligned-stablecoin-reserve-fund-with-0-25-fee\/\">the GENIUS Act<\/a> gives the Fed 120 days to decide. If it doesn\u2019t, then the application is deemed approved. The Fed also gets 30 days after receiving an application to tell the applicant whether it considers the filing substantially complete. That said, a material change, such as deteriorating finances or a materially altered business plan, could reset that 120-day clock.<\/p>\n<h2>Barr Wants Redemption Rights and Tougher AML Teeth<\/h2>\n<p>Fed Gov. Michael Barr backed the rulemaking while arguing that the final framework needs firm consumer protections. \u201cStablecoins will only be stable if they can be reliably and promptly redeemed at par in a range of conditions,\u201d <a href=\"https:\/\/www.federalreserve.gov\/newsevents\/pressreleases\/barr-statement-20260924.htm\" target=\"_blank\" rel=\"noopener noreferrer\">Barr said on Thursday<\/a>, pointing specifically to market stress and trouble at individual issuers.<\/p>\n<p>He also welcomed reserve limitations and standardized capital requirements but wants public feedback on whether the framework adequately handles interest-rate and foreign-currency risks. Barr remarked that \u201cuniversal redemption rights\u201d need to be clear in the final rule.<\/p>\n<p>One provision left him less comfortable: requiring an anti-money laundering deficiency to be \u201csignificant or systemic\u201d before the Fed undertakes supervisory or enforcement action. The proposal contains that threshold.<\/p>\n<p>Public comments stay open for 60 days after publication in the Federal Register. The strange part is where stablecoins are ending up. <a href=\"https:\/\/news.bitcoin.com\/featured\/coinbase-moov-deal-opens-stablecoins-to-1000-banks-and-credit-unions\/\">Technology designed to move dollars<\/a> at internet speed is picking up a rulebook filled with Treasury maturities, quarterly capital tests, and regulatory clocks measured in months.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/regulation-and-legal\/feds-proposed-stablecoin-rules-put-genius-acts-dollar-test-work\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways The Fed proposes at least $1 in permitted reserves behind every $1 in stablecoins. Michael Barr wants clear redemption rights and scrutiny of the Fed\u2019s AML threshold. The GENIUS Act gives the Fed 120 days to decide complete bank applications. The Fed Is Building a Stablecoin [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":78620,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/78619"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=78619"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/78619\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/78620"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=78619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=78619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=78619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}