Fed Proposes GENIUS Act Stablecoin Rules With 2% Capital Charge to Ensure Par Redemption

The Federal Reserve proposed GENIUS Act rules for stablecoin issuers, mandating 1:1 reserves and tiered capital charges of 2% to 1%. The rules also include a presumption against indirect yield, aiming to ensure stablecoin holders can redeem at par. The proposal targets systemic risks while preserving stablecoin utility in payments.