🇺🇸BREAKING: The Fed has proposed its GENIUS Act rules, requiring stablecoins it oversees to be fully backed by Treasury bills and other high-quality assets. Proposal one: - Stablecoins must be fully backed by permissible reserves, such as short-term Treasury bills and other high-quality, liquid assets. - Issuers face standardized capital requirements covering credit and operational risks, plus risk management standards. - New rules cover firms that safekeep stablecoin reserves, and clarify which stablecoin activities Fed-supervised banks can carry out. Proposal two: - Fed-supervised banks applying to issue stablecoins must submit a business plan and financial information. - The proposal also sets a process for appeals, hearings and final decisions on applications. "Stablecoins will only be stable if they can be reliably and promptly redeemed at par in a range of conditions," says Fed Governor Michael Barr. The comment period closes 60 days after publication in the Federal Register.