According to CoinMeta, the Federal Reserve has proposed rules under its "Genius Act," which require that stablecoins under its supervision must be fully backed by government bonds and other high-quality assets. Proposal one: Stablecoins must be fully supported by permissible reserves, such as short-term government bonds and other high-quality, liquid assets. Issuers face standard capital requirements to cover credit and operational risks, and new risk management standards apply to companies that hold stablecoin reserves. The proposal also clarifies the stablecoin activities that Federal Reserve-regulated banks can undertake. Proposal two: Federal Reserve-regulated banks applying to issue stablecoins must submit business plans and financial information. The proposal also establishes a process for appeals, hearings, and final decisions regarding applications. Federal Reserve Governor Michael Barr stated, "Stablecoins can truly be stable only if they can be redeemed at face value reliably and quickly under various conditions." The comment period will end 60 days after the publication in the Federal Register.