🚨 The Fed Cracks Down! Stablecoin Regulatory Proposal Leaked, Industry Faces a Major Shake-Up
Odaily Planet Daily latest update: the Federal Reserve is preparing stringent new rules targeting banks that issue payment-type stablecoins. The key points are as follows:
1️⃣ Full Reserves & Fast Redemptions
Each $1 token must be backed by at least $1 in highly liquid assets. Reserve assets include U.S. dollars, Federal Reserve balances, 93-day U.S. Treasuries, and more. Customer redemptions must be completed within two business days. If reserves fall short and are not topped up in time, the Fed will forcibly require asset liquidation and redeem all tokens!
2️⃣ Clear Capital Requirements
Issuers must set aside capital for operational and credit risks. For the portion within $20 billion, the capital fee rate is 2%; for amounts exceeding $50 billion, it drops to 1%.
3️⃣ Big-Player Entry & Compliance
Deposit-taking institutions may apply to establish an issuing subsidiary, but must wait for the Fed’s approval, which could take up to 120 days. Fed Governor Michael Barr emphasized that stablecoins must be “reliably redeemable at par” under any market conditions, and he clearly opposes lowering anti-money-laundering compliance thresholds.
💡 Quick Take:
This signals that U.S. regulation of stablecoins is moving from “gray areas” toward a comprehensive tightening. Full reserves, fast redemptions, and strict capital requirements will significantly raise the bar for issuers and dramatically increase compliance costs. For the industry, this is both a shot in the arm for investor protection and an order accelerating the exit of smaller issuers.
The proposal is currently in a 60-day public comment period, and final implementation will take additional time. Crypto friends—what do you think? Feel free to discuss in the comments!👇
#FederalReserve #Stablecoins #CryptoRegulation #Bitcoin
Odaily Planet Daily latest update: the Federal Reserve is preparing stringent new rules targeting banks that issue payment-type stablecoins. The key points are as follows:
1️⃣ Full Reserves & Fast Redemptions
Each $1 token must be backed by at least $1 in highly liquid assets. Reserve assets include U.S. dollars, Federal Reserve balances, 93-day U.S. Treasuries, and more. Customer redemptions must be completed within two business days. If reserves fall short and are not topped up in time, the Fed will forcibly require asset liquidation and redeem all tokens!
2️⃣ Clear Capital Requirements
Issuers must set aside capital for operational and credit risks. For the portion within $20 billion, the capital fee rate is 2%; for amounts exceeding $50 billion, it drops to 1%.
3️⃣ Big-Player Entry & Compliance
Deposit-taking institutions may apply to establish an issuing subsidiary, but must wait for the Fed’s approval, which could take up to 120 days. Fed Governor Michael Barr emphasized that stablecoins must be “reliably redeemable at par” under any market conditions, and he clearly opposes lowering anti-money-laundering compliance thresholds.
💡 Quick Take:
This signals that U.S. regulation of stablecoins is moving from “gray areas” toward a comprehensive tightening. Full reserves, fast redemptions, and strict capital requirements will significantly raise the bar for issuers and dramatically increase compliance costs. For the industry, this is both a shot in the arm for investor protection and an order accelerating the exit of smaller issuers.
The proposal is currently in a 60-day public comment period, and final implementation will take additional time. Crypto friends—what do you think? Feel free to discuss in the comments!👇
#FederalReserve #Stablecoins #CryptoRegulation #Bitcoin