Fed Proposes Stablecoin Reserve and Capital Rules Under GENIUS Act

The proposal's real weight lies in the Fed asserting supervisory authority over stablecoin issuance rather than leaving it to state or market self-regulation, which shifts the compliance burden onto banks already inside its perimeter. The dissent over the AML standard signals the rule is not settled, and the presumption against yield-bearing arrangements is the provision most likely to draw industry pushback. Whether that yield stance survives the comment process is the open question for issuers and their partners.