Federal Reserve Advances GENIUS Act: Banks Can Hold Deposits for Stablecoins

TechFlow reports that on September 25, according to CoinDesk, the Federal Reserve issued a new proposal regarding the GENIUS Act on September 24, establishing guidelines for member banks on how to provide financial services to stablecoin issuers.

Under the proposal, upon meeting the relevant requirements, member banks can legally hold reserve deposits for qualified stablecoin issuers and provide related asset custodial services. This move is viewed as a key step by the Federal Reserve in implementing legislative regulatory rules for stablecoins, aiming to embed cryptocurrency operations into the existing regulated banking system.