Fed Proposes Tougher Stablecoin Rules as US Payment Framework Takes Shape

The Federal Reserve proposed new stablecoin rules on Thursday as U.S. regulators continue building a federal framework for digital payments.

Under the plan, payment stablecoin issuers would need enough approved reserves to cover their tokens in full. The rules would also bring in capital requirements and set conditions for banks holding reserves for stablecoin companies.

Reserve Rules Take Shape

Short-term U.S. Treasury bills would be among the assets issuers could use to back their stablecoins. Companies would also need to meet capital requirements tied to credit and operational risks.

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Banks under Fed supervision would face their own requirements when holding stablecoin reserves. The proposal also spells out the stablecoin activities those banks could conduct.

A bank seeking to issue a payment stablecoin would need to submit a separate application. Meeting the Fed’s requirements would still be necessary before the bank could launch the token.

Fed Opens 60-Day Comment Period

The GENIUS Act became law on July 18, 2025. It created the first federal framework for payment stablecoins and directed regulators to address issuers, reserves, disclosures and anti-money-laundering controls.

The Fed will accept comments for 60 days once the proposal is published in the Federal Register. Its rules will also need to fit with requirements being developed by the Office of the Comptroller of the Currency and Federal Deposit Insurance Corp.

The GENIUS Act is set to take effect by Jan. 18, 2027, unless final rules move that date forward.

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