Federal Reserve proposes reserve and capital standards for stablecoins

The Federal Reserve stablecoin proposal is now open for public comment. On Sept. 24, the central bank put forward two proposed frameworks for payment stablecoins involving issuers and banks it supervises, a step toward carrying out the GENIUS Act, according to Bloomberg and Decrypt.

For investors following crypto policy, the key distinction is status and scope: these are proposed rules, not requirements now in force, and they target Board-supervised payment-stablecoin issuers and banks rather than every company offering a stablecoin in the U.S.

What would the Federal Reserve stablecoin proposal require?

The first proposal would require covered payment-stablecoin issuers to fully back their tokens with permissible reserve assets. Short-term U.S. Treasury bills and other high-quality, liquid assets are among the examples reported by Bloomberg and Decrypt.

It would also set standardized capital requirements for credit and operational risks tied to payment-stablecoin activities, according to Decrypt. Capital is money a firm holds to absorb potential losses. The proposal also covers risk-management practices and the safeguarding of assets held as reserves.

A payment stablecoin is a digital asset intended for payments that aims to maintain a one-to-one value against the U.S. dollar. A Federal Reserve research note says the GENIUS Act requires such tokens to be backed by relatively safe assets with limited credit and valuation risk. Reserves are the assets intended to support redemption of stablecoins at their stated value.

A separate path for banks seeking to issue stablecoins

The Fed's second proposal would create a specific application process for Board-supervised banks that want to issue payment stablecoins. Applicants would need to provide a business plan and financial information, Decrypt reported. The proposal would also establish procedures for appeals, hearings and final decisions.

The paired proposals divide the job in two: one outlines operating standards for covered issuers, while the other sets out how supervised banks could seek approval to enter the business.

What happens next?

The public comment period will run for 60 days after the proposals are published in the Federal Register, according to Decrypt. The available reporting does not provide a final-rule timetable.

Congress passed the GENIUS Act in July 2025, establishing a federal framework for payment stablecoins, according to the Federal Reserve's March research note. The Sept. 24 proposals are part of regulators' implementation work under that law. Whether the proposed details become final rules, or change after public comments, remains unresolved.

This story draws on original reporting from Decrypt.