American regulator moves forward with the implementation of federal legislation for stablecoins, but Michael Barr warns about risks related to oversight aimed at preventing money laundering
🚦 Market Sentiment: 🟨 Neutral — greater regulatory clarity, but with new requirements for issuers
The Federal Reserve (Fed) took another step in implementing the GENIUS Act, a federal law in the United States created to establish a specific regulatory framework for payment stablecoins.
On Thursday, the U.S. central bank presented a proposal with new rules for issuers of these digital coins, including requirements related to reserves, capital, and authorization to issue.
The initiative comes as U.S. regulators work to turn the legislation approved by Congress and signed by President Donald Trump into rules that are effectively applicable to the market.
💵 Stablecoins must have highly liquid reserves
Among the key points of the proposal is the requirement that payment stablecoins be fully backed by high-quality and liquid assets.
The Fed proposed that issuers maintain reserves composed of assets such as short-term U.S. Treasury bills and other assets considered highly liquid.
The logic is to reduce the risk that an issuer would be unable to honor the redemption of its stablecoins when users request conversion into dollars.
The proposal also sets capital requirements and standards, seeking to create a more uniform framework so that issuers can manage financial and operational risks.
🏦 Banks will have a specific process for issuing
Another point raised by the Federal Reserve involves banks that are under its supervision and intend to enter the stablecoin market.
The Fed proposed the creation of a specific registration process for banking institutions supervised by the Board that wish to issue payment stablecoins.
In practice, this creates a more clearly defined regulatory pathway for traditional financial institutions that want to participate in this market.
📜 What changes with the GENIUS Act?
The GENIUS Act establishes, for the first time, a comprehensive federal framework to regulate payment stablecoins in the United States.
Among its provisions are rules requiring that stablecoins be fully backed by U.S. dollars or certain liquid assets, in addition to disclosure and auditing requirements.
The legislation sets January 2027 as the effective date, while regulators continue developing the rules needed for its implementation.
The initial timeline included earlier regulatory stages, but the creation of complex rules involving the American financial system may require additional implementation periods.
⚠️ Michael Barr raises concern about money laundering
Despite supporting the latest proposal, Federal Reserve governor Michael Barr again showed concern about how the legislation could affect anti-money laundering-related supervision.
Barr argues that standards should be established capable of preserving the Fed’s authority to act in the event of deficiencies in anti-money laundering programs.
According to him, limiting supervisory or enforcement actions to cases deemed “significant or systemic” could generate effects not yet known on the central bank’s ability to adequately supervise institutions.
Barr’s concern is precisely related to the balance between creating a clear regulatory structure for stablecoins and maintaining effective mechanisms for financial supervision.
🌎 Stablecoins definitively move onto the radar of the U.S. financial system
The Federal Reserve’s actions show that stablecoins are no longer being treated only as a segment of the cryptocurrency market and are taking up an increasingly relevant place in the infrastructure discussion.
With the implementation of the GENIUS Act, issuers will have to operate under clearer rules involving reserves, liquidity, capital, auditing, and supervision.
At the same time, the debate raised by Michael Barr shows that regulation still faces important questions related to oversight and the fight against financial crimes.
For the cryptocurrency market, implementing these rules could represent a significant change in how stablecoins are issued and used within the United States.
📌 In summary: the Fed moves forward on stablecoin regulation with requirements for highly liquid reserves, capital standards, and new procedures for issuing banks. Meanwhile, Michael Barr calls for additional attention to anti-money-laundering mechanisms before the new regime fully comes into operation.💲$USDE 💲$USDC 💲$USD1 💲
