A Fed‑proposed rule could force a stablecoin liquidation in under 48 hours.
The rule gives issuers 24 hours to notify the Federal Reserve and submit a remediation plan once reserves dip below token value.
If the gap isn’t closed, the issuer must begin liquidating reserves and redeeming tokens by 5 p.m. the next business day—often less than 48 hours total.
During the remediation window the issuer may keep minting new stablecoins; the Fed says an abrupt halt would be visible on‑chain and could accelerate a run.
Reserve assets must equal or exceed outstanding tokens at all times, with fair‑value recorded daily at 5 p.m. local Fed Bank time.
The Fed illustrates a $100 million stablecoin backed by $95 million: after $35 million redemption the backing falls to $0.92 per token, after $80 million it drops to $0.75.
Circle reports USDC circulating $74.6 billion against $74.8 billion in reserves, with $40.2 billion issued and $39 billion redeemed in the prior 30 days.
Comments on the 392‑page proposal are open for 60 days after publication in the Federal Register.
Do you think real‑time on‑chain visibility helps or harms stablecoin stability?
#Stablecoin #FinTech #Regulation #Crypto
The rule gives issuers 24 hours to notify the Federal Reserve and submit a remediation plan once reserves dip below token value.
If the gap isn’t closed, the issuer must begin liquidating reserves and redeeming tokens by 5 p.m. the next business day—often less than 48 hours total.
During the remediation window the issuer may keep minting new stablecoins; the Fed says an abrupt halt would be visible on‑chain and could accelerate a run.
Reserve assets must equal or exceed outstanding tokens at all times, with fair‑value recorded daily at 5 p.m. local Fed Bank time.
The Fed illustrates a $100 million stablecoin backed by $95 million: after $35 million redemption the backing falls to $0.92 per token, after $80 million it drops to $0.75.
Circle reports USDC circulating $74.6 billion against $74.8 billion in reserves, with $40.2 billion issued and $39 billion redeemed in the prior 30 days.
Comments on the 392‑page proposal are open for 60 days after publication in the Federal Register.
Do you think real‑time on‑chain visibility helps or harms stablecoin stability?
#Stablecoin #FinTech #Regulation #Crypto
