Key Highlights
- The Fed proposed new rules for stablecoin reserves, capital and risk management.
- Banks seeking to issue stablecoins would need to submit a business plan and financial information.
- The proposals are part of the GENIUS Act framework, with full enforcement expected in January 2027.
The U.S. Federal Reserve has proposed new rules for payment stablecoin issuers as it moves to put the GENIUS Act into action.
In an official release on Thursday, September 24, 2026, the Fed requested public comment on two proposals that would set rules for stablecoin reserves, capital, risk management and the process banks must follow to issue these digital tokens.
Stablecoins would need full backing
The first proposal focuses on how stablecoins should be backed. Under the plan, Board-supervised issuers would have to fully back their stablecoins with approved reserve assets.
These could include short-term U.S. Treasury bills and other high-quality assets that can be quickly turned into cash. The proposal is intended to ensure that issuers maintain sufficient permissible reserve assets to back outstanding stablecoins.
The proposal would also bring in standard capital requirements for stablecoin activities. In simple terms, issuers would need to maintain capital to address certain credit and operational risks. The Fed also wants issuers to follow set risk management rules as part of the new framework.
Another part of the first proposal deals with companies that hold the assets backing stablecoins. The Fed wants rules for Board-supervised firms that safeguard these assets. It would also clarify which stablecoin activities are allowed for banks supervised by the Federal Reserve.
Banks will face an application process
The second proposal deals with banks that want to issue payment stablecoins. Banks seeking approval would have to provide documents such as a business plan and financial information.
The proposal would also create a clear process for appeals, hearings and final decisions on applications.
The GENIUS Act sets the stage
These proposals come as the U.S. works to turn the GENIUS Act from a law into a working set of rules.
President Donald Trump signed the law on July 18, 2025, after it passed the Senate by 68-30 and the House by 308-122. The law created a federal framework for payment stablecoins in the United States.
Stablecoins are digital tokens made to keep a steady value against a real-world currency, most commonly the U.S. dollar. A dollar-backed stablecoin, for example, is designed to stay close to $1. Before the GENIUS Act, stablecoin issuers faced a mix of state rules, while federal agencies disagreed over which agency should oversee the market.
The new law changed that setup. It established rules for compliant payment stablecoins and moved oversight toward federal banking regulators. The Office of the Comptroller of the Currency is identified in the supplied material as the main federal banking regulator for the asset class.
July 18, 2026 marked one year since the GENIUS Act became law and the statutory deadline for federal agencies to complete many of the rules needed to put it into effect. Full enforcement is approaching in January 2027.
Another crypto bill hits a roadblock
At the same time, another major piece of U.S. crypto legislation has hit a roadblock. On September 15, the Senate failed to advance the Digital Asset Market Clarity Act after a 49-50 vote.
The motion needed 60 votes to move forward, leaving the broader crypto market structure bill short of the required threshold.
Against that backdrop, the Fed’s proposals give stablecoin issuers and banks a clearer picture of the rules being developed around the sector. The public comment process will now give interested parties an opportunity to respond before the rules are finalized.
Also Read: CFTC Updates Crypto Guidance as Tokenized Assets Hit $46B
