Stablecoin Regulation US: Federal Reserve's Key Proposal

The Federal Reserve moved on Thursday to tighten the rules around one of crypto’s fastest-growing corners, proposing that companies issuing payment stablecoins hold their reserves almost entirely in short-term Treasury bills or other highly liquid assets. The plan, unveiled September 24, 2026, marks the latest and most concrete step yet in shaping stablecoin regulation US markets have been waiting on since Congress passed the GENIUS Act last year.

Key takeaways

• The Federal Reserve proposed requiring stablecoin issuers to fully back their tokens with short-term Treasury bills or other highly liquid assets.
• New standardized capital requirements and risk management standards would apply to stablecoin issuers under the proposal.
• Board-supervised banks that want to issue stablecoins would need to go through a specific new application process.
• The rules implement the GENIUS Act, signed into law by President Donald Trump, which has a January 2027 effective date after an initial July 2026 deadline slipped.
• Federal Reserve Governor Michael Barr backed the proposal but pushed for tougher anti-money laundering standards and flagged concerns over enforcement limits.

Federal Reserve’s Proposal for Stablecoin Backing and Capital Standards