TL;DR
Get smart everyday buys delivered free with Prime
- Fast, free delivery on millions of items
- Prime Video, Amazon Music and more included
- Member-only deals all year
The Federal Reserve proposed rules Thursday that would require stablecoin issuers to hold certain high-quality, liquid assets and meet capital and risk management standards. The proposal also sets out an application process for banks seeking to issue stablecoins and will be open for public comment for 60 days after Federal Register publication.
The Federal Reserve proposed rules Thursday that would require stablecoin issuers to back their tokens with specified high-quality, liquid assets, meet capital and risk management standards, and follow a new application process if they are banks seeking to issue stablecoins. The proposal is part of the federal regulatory framework mandated by the Genius Act; the Fed will accept public comments for 60 days after the proposal appears in the Federal Register.
The proposal would require stablecoin issuers to hold eligible assets such as Treasury bills to back their tokens. It would also impose capital requirements intended to address credit and operational risks, alongside risk management standards. In a statement accompanying the proposal, Fed Governor Michael Barr said holders should be able to redeem stablecoins at face value across a range of conditions.
The Fed also proposed rules for firms under its supervision that safekeep assets backing stablecoins. For banks that want to issue stablecoins, the proposal would establish procedures for applications, appeals, hearings and final determinations. These provisions address both the backing of tokens and the process for regulated banks seeking permission to issue them.
The proposal is not yet final. The Fed’s comment period will remain open for 60 days after Federal Register publication. The source report says no federal agency had finalized stablecoin rules at the time of publication, so the final requirements and their implementation remain pending.
Redemption Rules Shape Token Stability
The proposal puts redemption and reserve quality at the center of the Fed’s approach. Stablecoins are designed to maintain a set value, commonly by allowing holders to redeem tokens for an equivalent amount of currency. Requirements for liquid backing and adequate capital could affect how issuers manage assets, prepare for losses and respond when many holders seek redemption at once.
Barr said reliable redemption matters in ordinary conditions and during market stress, when even government debt that is normally liquid can face pressure. That concern connects the proposal to consumer protection and financial stability: if reserves cannot be accessed promptly, users may not receive the value they expect when redeeming. The rules could also shape which banks enter stablecoin issuance and how supervised firms handle backing assets.
Those effects are prospective. The proposal does not establish final obligations, and the text may change after public comments and the agencies’ rulemaking process. Issuers, banks and users will need to wait for final rules to know the precise standards and compliance timelines.
Federal Rules Follow the Genius Act
The Genius Act requires federal financial regulators and the Treasury Department to establish a comprehensive federal framework for stablecoins. The statute set a July deadline for regulations, according to the source report, which described the Fed as behind schedule when it issued this proposal.
Other regulators had moved earlier in 2026. The OCC and NCUA proposed rules in February, while the Federal Deposit Insurance Corp. proposed rules in April and the Treasury Department did so in August. As of the report’s publication, however, none of those agencies had finalized its stablecoin rules. The Fed proposal is therefore one part of a broader, still-pending federal process rather than a finished national regime.
Final Standards Remain Open
The proposal is subject to public comment, and the final rules have not been issued. The available source material does not specify when the Fed will complete the rulemaking, how it may revise the requirements after reviewing comments, or when issuers and banks would have to comply.
It is also not yet clear how the Fed’s final framework will align in detail with rules from the OCC, NCUA, FDIC and Treasury. No agencies had finalized their rules at the time of the report, leaving the eventual combined requirements and their practical effect unsettled.
Comments Precede Final Rules
The next formal step is publication of the Fed proposal in the Federal Register. That publication starts the 60-day window for public comments. The Fed can then review submissions and determine whether to revise the proposal before issuing a final rule.
Readers should watch for the final text and any implementation schedule, as well as final stablecoin rules from the other federal regulators named in the Genius Act framework. Until those steps are complete, the proposal describes potential requirements rather than obligations already in force.
Key Questions
What did the Federal Reserve propose?
The Fed proposed reserve asset, capital and risk management requirements for stablecoin issuers, rules for supervised firms that safekeep backing assets, and an application process for banks seeking to issue stablecoins.
What assets could back stablecoins under the proposal?
The proposal refers to certain high-quality, liquid assets, including Treasury bills. The final eligible asset requirements have not been determined.
Are the Fed’s stablecoin rules in force?
No. They are proposed rules. The Fed must receive public comments and complete its rulemaking before issuing final requirements.
When can the public comment?
The comment period will last 60 days after publication in the Federal Register. The source report does not give a publication date.
Have other federal stablecoin rules been finalized?
The source report says no agencies had finalized stablecoin rules at the time of publication. It lists proposed rules from the OCC and NCUA in February, the FDIC in April and Treasury in August.
Source: rss
Halloween Picks
halloween
As an affiliate, we earn on qualifying purchases.
