Fed Proposes Strict Stablecoin Regulation with Concrete Reserve Requirements
The Federal Reserve has proposed concrete reserve, redemption, and reporting rules for U.S. stablecoin regulation in its September 24, 2026, draft.
The proposal sets explicit requirements for covered issuers, including a 1:1 reserve backing with daily valuation, limited to cash, Fed balances, bank deposits, short-dated Treasurys (≤93 days), certain repos, and approved MMFs.
Beyond the strict reserve composition, the draft also outlines redemption within two business days of a valid request, weekly operating data submitted to regulators, quarterly financial reports certified by the CFO and board, annual AML/sanctions certification, and a published redemption policy detailing eligibility and processing.
The mandates apply to issuers that are bank-supervised subsidiaries, with a 30-day application completeness window outlined in a companion proposal.