Fed GENIUS Stablecoin Rules: 1:1 Reserves + Bank Apps: 60-Day Comment

The Federal Reserve Board has proposed its GENIUS Act rules for Board-supervised payment stablecoin issuers, with 1:1 reserves, capital minimums and a 120-day clock for bank applications.

On Sept 24, 2026 the Federal Reserve Board asked for public comment on two proposals that implement its GENIUS Act duties for Board-supervised payment stablecoin issuers. One proposal would require 1:1 backing with a short list of liquid reserve assets, set standardized capital and risk-management rules, limit yield/interest arrangements, and clarify custody and bank activities. The other would create a tailored application process for insured state member banks that want a subsidiary to issue payment stablecoins, including a 120-day decision clock that runs from the date a substantially complete application is submitted. Comment periods run 60 days after Federal Register publication.

In this OnlyFintechs episode we walk the open .gov memos and Governor Barr’s statement:

• What “Board-supervised PPSI” means
• 1:1 reserves, redemption timing and capital tiers
• How the yield presumption tracks the OCC
• What state member banks must file, and the 120-day decision clock
• Governor Michael Barr’s statement

Keywords: Federal Reserve, GENIUS Act, payment stablecoin, PPSI, reserves, capital, state member bank, Michael Barr, OCC, stablecoin yield, fintech regulation.

#GENIUSAct #FederalReserve #Stablecoins #Banking #Fintech #Regulation #PodcastDrop