Fed Proposes GENIUS Act Rules for Stablecoin Issuers

Published October 4, 2026, 09:05 UTC

On September 24, 2026, the US Federal Reserve Board requested public comment on two proposals to carry out its part of the GENIUS Act, the stablecoin law enacted on July 18, 2025. The main rule was published in the Federal Register on September 29, 2026 (91 FR 61580). It runs 104 pages, and comments are due November 30, 2026.

Who it covers

The main proposal applies to "Board-supervised" permitted payment stablecoin issuers (PPSIs). These include subsidiaries of state member banks that the Board approves to issue stablecoins, and certain state-qualified issuers that move under the Board's framework. It also covers Board-supervised custodians, and a ban on "tying" that would apply to all PPSIs regardless of their regulator.

Main building blocks

The notice sets out proposed rules on:

• Permitted activities: issuing and redeeming stablecoins, managing reserves, and providing custody. The Fed says lending, or issuing stablecoins as loan proceeds, would not be permitted.
• Reserve assets, redemption and fees, risk management, audits and capital.
• No yield for holding: issuers could not pay holders interest or yield solely for holding or using a stablecoin. The Fed proposes a rebuttable presumption that certain arrangements, such as those routed through affiliates or related third parties, are prohibited.
• Government-backing claims: issuers could not market coins in a way that suggests they are legal tender or guaranteed by the US government or deposit insurance.
• Self-custody tools: a section (proposed § 247.23) addresses self-custody hardware and software, so that tools people use to hold their own stablecoins or keys are treated separately from regulated custodians.

The Board also seeks comment on whether to restrict issuers to one brand of stablecoin, a question that matters for white-label arrangements.

The second proposal

The Fed's press release describes a second proposal: a tailored application process for Board-supervised banks that want to issue stablecoins through a subsidiary. It covers the business plan and financial information an applicant must submit, along with appeals, hearings and final determinations.

Where it fits

The Fed says many aspects are similar to proposals already released by the OCC, FDIC and NCUA, and it tags its questions to the OCC's for comparison. On timing, it says the GENIUS Act takes effect on the earlier of January 18, 2027 (18 months after enactment) or 120 days after the primary regulators issue final implementing rules.

A day after the main notice, the Treasury published an interim final rule for the Stablecoin Certification Review Committee, setting procedures to review state regulators' certifications. It took effect September 30, 2026, though certifications will not be accepted until a Paperwork Reduction Act approval is obtained. Comments are also due November 30.

What happens next

These are proposals, so the final text may differ. The Fed's own questions, for example on the yield presumption and on multi-brand issuance, show where it is still undecided. Comments are made public, so the responses will show where industry and consumer groups stand. For the basics, see How Stablecoins Work and How They Are Regulated.

This article is news reporting and is not financial or legal advice.

Sources

• Federal Reserve Board, press release announcing two GENIUS Act proposals (Sept. 24, 2026)
• Federal Reserve Board, Implementing the Federal Reserve Board's Responsibilities Under the GENIUS Act, 91 FR 61580 (Sept. 29, 2026)
• Department of the Treasury, Forms and Procedures for Review of State Certifications by the Stablecoin Certification Review Committee, Federal Register (Sept. 30, 2026)