Fed Proposes New Stablecoin Rules Requiring Full Backing with Liquid Assets

The Federal Reserve has proposed new rules for stablecoin issuers in the US, requiring them to back their tokens fully with short-term Treasury bills or other highly liquid assets. This move aims to tighten regulations around one of crypto's fastest-growing corners.

The proposal, unveiled on September 24, 2026, is a key step in implementing the GENIUS Act, which was signed into law by President Donald Trump last year. The law requires stablecoins to be fully backed by US dollars or equivalent liquid assets and mandates annual audits, establishing a federal regulatory framework.

Banks supervised by the Federal Reserve Board that want to issue their own stablecoins would face a dedicated application process under the proposal. This creates a formal gateway specifically for banks entering the stablecoin business, separate from whatever pathway non-bank issuers might follow.