Federal Regulators Accelerate Stablecoin Rulemaking

Washington regulators have issued two new proposals related to payment stablecoins, one from Treasury and another from the Federal Reserve. The proposals are part of a broader effort to establish a regulatory framework for these digital assets.

The Federal Reserve's proposal provides a framework for Fed-supervised, permitted payment stablecoin issuers (PPSIs). According to America's Credit Unions, provisions in this proposal applicable to credit unions include restrictions on providing services tied to additional fees and requirements related to redemption. Comments on the proposal are due by November 30.

Separately, the Treasury has published an interim final rule implementing a process for reviewing state payment stablecoin regulatory regimes. The rule includes criteria for determining whether these regimes are substantially similar to the federal baseline. Comments on this proposal are due by December 1.