Fed Sets New Rules for Stablecoins, Mixed Reactions from Governors

The Federal Reserve has introduced a new set of rules that will change how crypto companies in the United States check their customers. These rules come after lawmakers passed the GENIUS Act, which officially allowed stablecoins—digital currencies tied to the U. S. dollar—to be issued. The proposal was made together with federal agencies such as the Treasury and the FDIC. It tells crypto firms that they must verify user details like name, birthdate, and address. They also have to compare this information against government lists of terrorists and other banned groups.All Fed governors voted for the proposal except one. The new chair, Kevin Warsh, chose not to vote and did not give a reason. No comment has come from the Fed yet. While the rules apply to companies that exchange, move, or hold crypto, they do not cover decentralized protocols. This loophole has drawn criticism from some officials. Governor Michael Barr, who supported the proposal, warned that the current framework still leaves gaps for illegal money movement through stablecoins. The Fed will now open a 60‑day period for the public to give feedback on these new rules.