Fed Proposes Stablecoin Rules with Reserve, Capital Requirements

The U.S. Federal Reserve has proposed rules to implement the country's new federal framework for stablecoins, setting requirements for reserves, capital, and risk management.

The proposals are part of the Federal Reserve's implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins Act, or GENIUS Act, enacted in 2025 to establish federal rules for payment stablecoins.

Under the Fed's proposal, payment stablecoin issuers supervised by the central bank would have to fully back their tokens with permitted reserve assets, including short-term U.S. Treasury securities and other high-quality liquid assets.

The rules would also introduce standardized capital requirements aimed at addressing credit and operational risks associated with stablecoin activities as well as risk-management requirements for issuers.