US Federal Reserve rolls out draft GENEVA Act stablecoin rules
The US Federal Reserve just rolled out draft rules to regulate stablecoins, those digital coins tied to real-world money.
These new guidelines, proposed under the GENIUS Act, set the stage for how Fed-regulated banks can issue stablecoins and are open for public feedback over the next 60 days.
The goal? To make sure everything's in place after the July 2026 deadline.
Banks must back stablecoins with liquidity
Under these proposals, a regulated bank wanting to launch a stablecoin will need to back it with liquid assets (think: cash or safe investments) and have a solid business plan.
There's also a focus on making sure people can always swap their coins for cash, even if things get rocky in the market, and on ensuring stablecoins can be reliably and promptly redeemed at par in a range of conditions.
Plus, you won't earn interest just by holding these coins (in line with existing rules), but small perks like credit card-style rewards are still allowed.
The GENIUS Act is now the primary law governing stablecoin rewards, with older efforts to revise it in the Clarity Act having failed, and this move is all about building a clear playbook for digital money going forward.