The Federal Reserve Board is seeking public comment on rules that would require payment stablecoin issuers under its supervision to fully back their tokens with permissible reserve assets. Announced on September twenty-four, two thousand twenty-six, the Fed stablecoin proposals also address capital, risk management and asset safekeeping, alongside a separate application process for Board-supervised banks seeking to issue payment stablecoins.
Key Takeaways
- The proposed framework combines full reserve backing with capital requirements and risk management standards under the GENIUS Act.
- A separate proposal covers bank applications, including required documents and procedures for reviewing decisions.
- The comment deadline depends on Federal Register publication, rather than the date of the Board’s announcement.
Table of Contents
- What the Fed stablecoin proposals would regulate
- How the bank application process would work
- When comments are due
- Conclusion
What the Fed stablecoin proposals would regulate
The first proposal addresses more than the assets an issuer holds against its stablecoins. Alongside full backing, it would establish standardized capital requirements aimed at certain credit and operational risks arising from payment stablecoin activities. Risk management standards would form another part of that framework.
The distinction matters: reserve backing and capital are presented as separate requirements, with capital directed at specified risks of the activity. The Board identifies short-term Treasury bills and certain other high-quality, liquid assets as examples of permissible reserves, rather than describing Treasury bills as the sole eligible asset.
This proposal also reaches Board-supervised firms that safekeep the assets backing payment stablecoins. Separately, it would clarify which stablecoin and related activities are permissible for Board-supervised banks, addressing the scope of bank activity as well as issuer requirements.
| Item | Details |
|---|---|
| Reserve assets | Full backing with permissible assets, including short-term Treasury bills and certain other high-quality, liquid assets. |
| Application materials | A business plan and financial information, among other documents. |
| Application decisions | Proposed procedures cover appeals, hearings and final determinations. |
| Comment clock | Closes 60 days after Federal Register publication. |
How the bank application process would work
The second proposal concerns entry into issuance rather than the operating standards described above. It would establish a tailored application process for Board-supervised banks, requiring a business plan, financial information and other documents.
The accompanying Federal Register notice is titled to address insured depository institutions seeking approval for a subsidiary to issue payment stablecoins. The proposed process would extend beyond submitting an application: it would also govern appeals, hearings and final determinations. Those procedures are distinct from the reserve, capital and safekeeping rules in the first proposal.
When comments are due
The Board says the comment period will close 60 days after publication in the Federal Register. Its announcement does not provide a calendar closing date, so the announcement date alone does not establish the submission deadline.
The Federal Reserve Board report on the proposed stablecoin framework describes requests for public comment, not completed rules. It does not state an implementation date for either proposal.
Conclusion
The Board has separated operating safeguards from approval procedures, giving commenters distinct proposals to assess. Federal Register publication will determine when that review window closes.
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