Fed Unveils New Playbook for Stablecoin Issuers
The Federal Reserve has released two proposals for stablecoin issuers, marking another step in crypto rulemaking. The plans outline how payment stablecoins are backed and who can offer them. If adopted, one proposal would require some issuers to hold full reserves in permissible assets, including short-term Treasury bills and other high-quality, liquid holdings. It would also set capital requirements that address specific credit and operational risks in payment stablecoin activities.
The companion proposal would create a defined application path for banks that want to issue stablecoins. Applicants would need to provide materials such as a business plan, financial information, and other documentation the Fed requests. The proposals now head into a 60-day comment period.