Fed Proposes Strict Rules for Payment Stablecoins in $300B Market

The Federal Reserve Board has taken a significant step towards implementing rules for payment stablecoin issuers. On September 24, 2026, the Fed released two notices of proposed rulemaking that outline how payment stablecoin issuers under its supervision must back their tokens and hold capital.

The proposals are part of the GENIUS Act framework and aim to regulate the $300-plus billion stablecoin market. The rules will shape who can issue stablecoins, how safe holders can feel, and how banks and non-bank firms compete in the space.

Stablecoins are digital tokens pegged one-to-one to the U.S. dollar, used for payments, trading, and moving money across borders. Tether's USDT dominates the market with around $183-184 billion, followed by Circle's USDC at about $76 billion.