Fed Proposes Concrete Rules for US Stablecoin Regulation

The Federal Reserve proposed concrete reserve, redemption, and reporting rules for U.S. stablecoin regulation on September 24, 2026. The draft sets explicit requirements for covered issuers, ending years of waiting and starting a compliance clock that will reshape treasury operations and payment rails.

The core stablecoin reserve requirements include a 1:1 reserve backing with daily valuation, assets limited to cash, Fed balances, bank deposits, short-dated Treasurys (≤93 days), certain repos, and approved MMFs. Issuers must also meet redemption within two business days of a valid request, weekly operating data submitted to regulators, quarterly financial reports certified by the CFO and board, annual AML/sanctions certification, and a published redemption policy detailing eligibility and processing.

The Fed's proposal gives businesses a clear compliance target, as regulated payment stablecoins were taking shape. Citi and Coinbase announced a deal to build bank-grade stablecoin payment rails shortly before, signaling that institutions were ready for a regulated environment. The standard changes counterparty risk, as a stablecoin that can't meet the Fed's two-business-day redemption or 1:1 reserve asset list will lose institutional liquidity.