Sept 24 (Reuters) - The US Federal Reserve on Thursday proposed new rules for issuers of dollar-backed cryptocurrency tokens known as stablecoins, as required by last year's GENIUS Act, which established a federal regulatory framework for the tokens.
Under the proposal, the Fed would require that payment stablecoin issuers under its supervision fully back their tokens with certain reserve assets, such as short-term Treasury bills
The proposal would also impose capital requirements on stablecoin issuers to address certain credit and operational risks
If enacted, the new rules would introduce guidelines for Fed-supervised banks that custody reserves on behalf of stablecoin issuers
The proposal would also outline stablecoin-related activities Fed-supervised banks can engage in, and would establish a tailored application process for banks that want to issue their own stablecoins
The Fed will accept comment on the proposed new rules for 60 days after they are published in the Federal Register
Reporting by Hannah Lang in New York; Editing by Jonathan Spicer
