Federal Reserve Proposes Framework for Stablecoin Inclusion in Money Supply

The Federal Reserve has proposed a framework for deciding how stablecoins and other blockchain-based financial products could fit within U.S. money supply statistics.

According to researchers Kristen Payne and Mary-Frances Styczynski, payment stablecoins could eventually qualify for inclusion within M1 or M2. Everyday payment use would support M1 classification, while short-term value storage would point toward M2.

The study examined the economic function of each asset and whether reliable data could be collected without counting the same money twice. The authors stressed that the paper reflects their personal views and does not represent a Federal Reserve policy decision or an active deliberation over changing the monetary aggregates.