Fed opens feedback on GENIUS Act stablecoin liquidation rules
CIE News ·
Based on reporting by CryptoSlate; not yet independently confirmed.
The Federal Reserve opened a 60-day review period for proposed GENIUS Act rules requiring stablecoin issuers to fix reserve deficits within 24 hours or face liquidation.
On October 19, 2026, the Federal Reserve started an administrative review phase for supervisory rules governing payment stablecoin issuers under the GENIUS Act. According to CryptoSlate, the 392-page proposed framework requires issuers to hold reserves equal to or exceeding circulating supply, assessing fair value daily at 5:00 PM in the supervising Reserve Bank time zone.
Under the proposal, an issuer facing a reserve shortfall must notify the central bank and submit a restoration plan within 24 hours. Unless the deficit is resolved or the plan receives regulatory approval, the issuer must start liquidating reserves and processing redemptions by 5:00 PM on the following business day. The framework allows token minting to continue during that initial window to avoid revealing distress through public on-chain activity.
In standard operating conditions, issuers must process redemption requests within two business days. The proposed regulatory standards are subject to a 60-day public comment period.
Key facts
- 392-page proposed rule
- 24-hour compliance clock
- 60-day comment period
- GENIUS Act framework
Read the original at CryptoSlate