Federal Reserve Sets Stablecoin Capital Floor Amid Run-Risk Concerns

The Federal Reserve has set a stablecoin capital floor by approving two rulemaking proposals that establish concrete reserve standards, a tiered capital surcharge structure, and a bank application pathway. The proposals, which were approved in unanimous votes on September 24, 2026, fill the last major hole in the federal stablecoin regulatory framework.

The Guiding and Establishing National Innovation for U.S. Stablecoins Act, signed into law July 2025, required four primary federal prudential regulators to finalize implementing rules within one year of enactment. The Office of the Comptroller of the Currency moved first, publishing OCC's 376-page stablecoin proposal in February 2026.

The capital surcharge structure is designed to absorb operational losses and requires issuers to hold a minimum capital buffer of roughly $1.15 billion under the surcharge formula for a stablecoin issuer with $50 billion outstanding. The redemption clock matters as much as the capital level, with issuers required to fulfill customer redemption requests within two business days.

Federal Reserve Vice Chair Michael Barr signaled that the proposals may leave the most dangerous run-risk scenario unaddressed. He expressed support for the reserve limits and standardized capital requirements but called for robust public feedback on whether the framework adequately addresses interest-rate and foreign-currency risks.