fedproposespaymentstablecoinrules

#fedproposespaymentstablecoinrules
The Federal Reserve Board proposed two draft rules on September 24, 2026 to implement its part of the GENIUS Act, the federal stable coin law signed in July 2025. Public comment is open for 60 days after the proposals are published in the Federal Register.
Who it covers
The Fed proposed a rule setting requirements for authorized stable coin issuers under its purview, including state member banks and other state-chartered issuers. Under the act, the Fed oversees stable coin issuers that are subsidiaries of state member banks. It also oversees state-chartered institutions without federal deposit insurance that have $10 billion or more of stable coins.
Proposal 1: reserves, capital and risk management
Full backing: Every $1 of stable coins would need at least $1 of permissible reserve assets behind it. Reserves could include U.S. dollars, Fed balances, certain bank deposits, Treasuries with 93 days or less to maturity, qualifying repos, and eligible investment funds.Redemption: Issuers must fulfill redemption requests within two business days. If backing falls below 1:1, they must immediately notify the Fed. Capital: Standardized capital requirements would address credit and operational risks, alongside risk-management standards. An issuer that stays short of required capital long enough could be forced to liquidate all reserves and redeem every coin. Custody: The proposal adds rules for Fed-supervised firms that safekeep the assets backing stable coins. It also clarifies which stable coin activities are permissible for Fed-supervised banks.
Proposal 2: bank applications
Fed-supervised banks that want to issue stable coins would follow a tailored application process rather than the standard one. Applicants would submit a business plan and financial information. The draft also sets up a process for appeals, hearings and final determinations. The GENIUS Act gives the Fed 120 days to decide complete applications.
Reaction and context
Fed Governor Michael Barr called the proposal an important step but said more work is needed. He said stable coins "will only be stable if they can be reliably and promptly redeemed at par" in a range of conditions, including market stressThe OCC and NCUA proposed their rules in February, the FDIC in April, and Treasury in August. No agency has finalized rules yet. The agencies also missed the statutory July 18 implementation deadline.The OCC's chief has said its final rule will come out by November.
These are proposals, so details could change after comments. Only banks and issuers under the Fed's supervision are covered, so issuers regulated by the OCC, FDIC or states would follow their own rules.