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The Federal Reserve proposed rules requiring 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 comment for 60 days after publication in the Federal Register.
The Federal Reserve proposed stablecoin rules Thursday that would require issuers to back their tokens with certain high-quality, liquid assets, set capital and risk management standards, and establish an application process for banks that want to issue stablecoins. The proposal is part of the federal framework required by the Genius Act; the Fed said it 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, including Treasury bills, to support the tokens they issue. It would also impose capital requirements to address credit and operational risks and set risk management standards. The Fed said the rules are intended to support reliable redemption and consumer protections.
The Fed’s plan covers firms under its supervision that safeguard assets backing stablecoins. It also outlines procedures for applications by banks, including appeals, hearings and final determinations. The proposal does not itself approve any bank to issue a stablecoin; it would establish a process for considering applications.
The proposal is open for comment for 60 days after Federal Register publication. The source report said the Fed issued it on September 25, 2026, but did not specify the Federal Register publication date. No federal agency had finalized stablecoin rules as of the report.
Redemption Rules Shape Stablecoin Safety
Stablecoins are designed to maintain a steady value, often by allowing holders to redeem tokens for a fixed amount of currency. The Fed’s proposal addresses whether issuers can honor those redemptions under pressure by setting expectations for backing assets, capital and risk controls. Those requirements could affect how issuers manage reserves and how banks approach entering the market.
Fed Governor Michael Barr said the framework should include consumer protections while supporting payment improvements for households and businesses. The proposal remains subject to public comment, so its details may change before any rules take effect. The practical impact will depend on the final requirements and their implementation.
Federal Rules Under the Genius Act
The Genius Act directs federal regulators and the Treasury Department to establish a comprehensive regulatory framework for stablecoins. The law set a July deadline for regulations, according to the source report, putting the Fed’s September proposal after that date.
Other agencies have moved on separate parts of the framework. The Office of the Comptroller of the Currency and the National Credit Union Administration proposed rules in February; the Federal Deposit Insurance Corp. proposed rules in April; and the Treasury Department proposed rules in August. As of the report, none of those agencies had finalized its rules.
Final Requirements Remain Open
The proposal is not a final rule. Its provisions may change after public comments, and the Federal Register publication date—which starts the 60-day comment period—was not given in the source report. The report also did not specify the exact capital levels, the full list of eligible reserve assets, or when the Fed expects to complete its review.
It is also unclear when the Fed or other federal agencies will finalize their stablecoin regulations. The proposal sets out a bank application process, but the report did not describe how long reviews may take or identify any applications under consideration.
Public Comments Precede Final Rules
The next stated step is publication in the Federal Register, followed by a 60-day period for public comment. The Fed will then consider feedback as it works toward a final rule. The timing of that final action was not specified in the source report.
Other federal agencies also need to complete their stablecoin rulemaking. Readers will be able to assess the eventual federal framework once the proposals are finalized and agencies clarify how their requirements work together.
Key Questions
What did the Federal Reserve propose?
The Fed proposed requirements for stablecoin backing assets, issuer capital and risk management, plus rules for supervised firms that safeguard backing assets and a process for banks applying to issue stablecoins.
What assets could back stablecoins under the proposal?
The source report cites certain high-quality, liquid assets, including Treasury bills. It does not provide a complete list of eligible assets.
When can the public comment on the proposal?
The Fed said the proposal will be open for comment for 60 days after it is published in the Federal Register. The publication date was not specified in the source report.
Are the stablecoin rules final?
No. The Fed’s rules are a proposal. The report said no federal agencies had finalized stablecoin rules as of September 25, 2026.
Source: rss
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