Fed's Two-Day Stablecoin Payout Rule Sparks Concerns for Business Working Capital

The Federal Reserve has proposed a new stablecoin regulation that would impose a two-business-day redemption limit on issuers it supervises. This means that if an issuer is covered by this rule, they must complete a redemption request within two business days of receiving a valid request. The proposal was announced on September 29, 2026, and it's expected to affect the way businesses manage their working capital.

The proposed rule aims to reduce the worst-case issuer delay in redeeming stablecoins, but it doesn't eliminate the intermediate steps involved in converting fiat into local accounts. For founders and finance leads, this means they need to model the full redemption path, including the issuer's processing time and the banking or platform leg that converts fiat into their local account.

The two-day payout cap matters for businesses holding stablecoins as working capital because it affects payroll and vendor payments. A missed payroll can have legal and retention costs, while delayed vendor payments can trigger late fees and damaged supplier terms. DAO treasury stablecoins add governance risk, making timely redemptions crucial.