Fed Proposes Rules for Stablecoin Issuers Under Supervision

The Federal Reserve has proposed rules for stablecoin issuers under its supervision. The proposals aim to operationalize the nation's stablecoin law, which was signed into effect by President Donald Trump in July 2025. According to the GENIUS Act, payment stablecoins must be backed at least one-to-one by qualifying reserves.

The first proposal focuses on the operational and financial obligations of Board-supervised issuers. It requires that stablecoins be fully backed by cash, bank deposits, or short-term U.S. Treasury bills. Reserve assets would need to equal or exceed the value of outstanding tokens and be segregated from other issuer holdings.

The Fed has also introduced a standardized capital framework designed to absorb credit and operational risks. The operational-risk capital charge would be calculated on a sliding scale tied to the volume of stablecoins an issuer has outstanding, ranging from 2% for the first $20 billion in outstanding tokens to 1% above $50 billion.

The proposal also establishes a practical expectation for redemption operations, requiring issuers to process redemptions within two business days. It specifies a remediation path if an issuer's reserves fall below the required one-to-one backing.

Transparency requirements are another pillar of the framework. Issuers would be required to publish monthly reports detailing the outstanding amount of stablecoins and the value and composition of their reserves, examined by a registered public accounting firm and certified by the issuer's CEO and CFO.