Fed Unveils Stablecoin Rules: 1:1 Reserves, 2-Day Redemptions
The Federal Reserve has proposed detailed rules for stablecoin issuers, aiming to ensure their stability and trustworthiness. The draft regulations, released on September 24, 2026, cover reserve assets, redemptions, capital requirements, custody, and ongoing reporting.
According to the proposal, stablecoins must be backed 1:1 by qualified assets, which include cash, Federal Reserve bank balances, qualifying bank deposits, U.S. Treasury securities with maturities of no more than 93 days, and specific money market funds. Issuers must record reserves at fair value daily and ensure their value is never less than the redemption amount of outstanding stablecoins.
The proposed rules also outline a two-business-day redemption period, during which issuers must complete payments after receiving a valid redemption request. This timeline will enable users to assess whether issuers are fulfilling their commitments.