The first proposal would require Board-supervised payment stablecoin issuers to fully back their stablecoins with permissible reserve assets, such as short-term Treasury bills and other high-quality, liquid assets. The proposal would also establish standardized capital requirements and risk management standards to address certain credit and operational risks of payment stablecoin activities, in accordance with the law. Separately, the proposal would introduce rules for Board-supervised firms that safekeep the assets backing payment stablecoins. It would also clarify whether Board-supervised banks may engage in stablecoin and related activities.

The second proposal would establish a tailored application process for Board-supervised banks applying to issue payment stablecoins. These applicants would be required to submit a business plan and financial information, among other documents. The proposal would also establish a process for appeals, hearings, and final determinations.