- Published on
Federal Reserve Unveils Stablecoin Rules on Reserves and Capital
- Authors
- Name
- DeepHorus
The Federal Reserve proposed two rules on Thursday defining how payment stablecoin issuers supervised by the central bank must hold reserves, manage risk and qualify to enter the market. The announcements advance the bank’s work under the GENIUS Act, signed by President Donald Trump in July 2025. They matter because stablecoins increasingly function as digital cash and settlement infrastructure rather than assets confined to crypto trading.
Stablecoins are blockchain-based tokens designed to maintain a steady value by pegging to a reference asset, most often the U.S. dollar. Issuers hold reserves so holders can redeem each token at face value, while tokens circulate through wallets, exchanges and payment networks. They support trading, cross-border transfers and settlement, allowing users to move funds without first converting them into conventional bank deposits or cash.
The first proposal would require Board-supervised payment stablecoin issuers to keep reserves entirely in permitted assets, including short-term Treasury bills and other safe, highly liquid holdings. It would also standardize capital requirements for credit and operational risks, establish risk-management standards and govern companies that custody the assets. Full-reserve backing is intended to ensure that tokens remain redeemable at par value.
The second proposal would create a tailored application process for Board-supervised banks seeking to issue payment stablecoins. Applicants would submit a business plan and financial information, while the Fed would establish procedures for appeals, hearings and final decisions. The route gives established banks a clearer path into the market, but it also puts reserve plans, governance and financial capacity under supervisory review.
Technically, the reserve proposal separates token liabilities from operational and market risks. Permitted liquid assets would stand behind outstanding stablecoins, while a one-to-one backing model would support redemption at par value. Capital and custody standards would provide additional safeguards, although the framework would not eliminate technology, counterparty, liquidity or issuer-control risks.
The action forms part of a broader multi-agency rollout. The Office of the Comptroller of the Currency is targeting final stablecoin rules by November, ahead of a January statutory deadline, while Treasury has proposed restrictions on selling noncompliant stablecoins to U.S. customers. Issuers may welcome clarity, smaller firms may balk at compliance costs, and users will focus on redemptions and consumer protection.
Both proposals would face a 60-day public-comment period after Federal Register publication. If adopted, they could strengthen confidence in dollar-pegged tokens, encourage regulated bank participation and support broader use of the dollar online. They may also funnel reserves toward government securities and raise entry barriers, leaving issuer feedback, agency coordination and market adoption to determine how stringent the final regime becomes.
