Fed proposes reserve limits, capital standards for stablecoin issuers under GENIUS Act
60-second summary
The Federal Reserve proposes that stablecoin issuers must cap reserve assets at 100 percent of circulating tokens and meet a standardized capital‑to‑risk ratio of at least 15 percent under the GENIUS Act, aiming to tighten liquidity safeguards; these rules could raise compliance costs, push issuers toward more transparent backing, and potentially curb speculative price swings in the broader crypto market.
The Federal Reserve proposed new measures for stablecoin issuers, including reserve-asset limits and standardized capital requirements.