Federal Reserve Tightens Stablecoin Rules Amid Crypto Market Volatility

The Federal Reserve has unveiled new rules for stablecoins, requiring issuers to hold high-quality liquid assets and meet stricter capital buffers.

The move aims to curb systemic risks after last year's volatility spikes in the crypto market. Analysts link this decision to broader efforts to ensure stability in the sector.

The Federal Reserve has been monitoring the growth of stablecoins, which are pegged to a specific asset or currency and are used as a medium of exchange.