Fed Proposes Stablecoin Regulation Amid Regulatory Shift

The Federal Reserve has announced plans to regulate stablecoin issuers, marking another step in regulators embracing cryptocurrency. The proposals unveiled on Thursday would require certain issuers to back their stablecoins with permissible reserve assets like short-term Treasury bills and other high-quality, liquid assets. This move is part of the ongoing rulemaking process for crypto.

The plan would also establish capital requirements for credit and operational risks associated with payment stablecoin activities. The Fed's decision reflects a shift in regulators' attitudes towards cryptocurrency, which has been met with increasing scrutiny in recent years.