Fed Drafts GENIUS Act Rules: How U.S. Banks Can Issue Stablecoins

What happened

The Fed published two GENIUS Act proposals on September 24, setting 1:1 reserve rules and a 120-day PPSI approval process for bank stablecoin issuers.

Confirmed

Global impact / market context

Banks could issue stablecoins backed one-for-one by safe reserves, which means each token is matched by a dollar of assets, potentially changing deposit funding, payment revenue, and competition with existing stablecoin issuers.

Analyst inference

The proposals are drafts, not final rules, so banks and crypto firms still face uncertainty on reserve costs, approval timing, and whether stablecoin issuance shifts deposits away from traditional accounts.

Analyst inference

What to watch

1. The Fed published two GENIUS Act proposals on September 24 covering 1:1 reserve rules and a 120-day PPSI approval process for bank stablecoin issuers. Confirmed
2. Whether the 1:1 reserve requirement is finalized as proposed, since it would directly shape the cost of holding reserves and the profit per sale for issuing banks. Proposed
3. How banks weigh entering stablecoin issuance against deposit funding, payment fees, and capital spending needs once the 120-day approval path and reserve rules become clearer. Analyst inference

Affected assets

• GENIUS — Genius

Evidence

• en.spaziocrypto.com