Federal Reserve Unveils Stablecoin Rules on Reserves and Capital

In brief

• The Federal Reserve proposed rules requiring Board-supervised payment stablecoin issuers to fully back their tokens with permissible assets like short-term Treasury bills, plus standardized capital requirements, risk-management standards and rules for safekeeping reserves.
• A second proposal would create a tailored application process for Board-supervised banks seeking to issue stablecoins, with procedures for appeals and hearings; the comment period closes 60 days after Federal Register publication.
• The move adds the Fed's piece to a multi-agency GENIUS Act rollout, alongside the OCC's November push and Treasury's restrictions on noncompliant stablecoins.

The Federal Reserve is moving to set the ground rules for stablecoin issuers it oversees, proposing Thursday that they fully back their tokens with safe, liquid assets and hold capital against the risks of their operations.

The central bank opened two proposals for public comment as it builds out the regulatory framework required under the GENIUS Act, the stablecoin law President Donald Trump signed in July 2025.

The first would require Board-supervised payment stablecoin issuers to hold reserves entirely in permissible assets such as short-term Treasury bills and other high-quality, liquid holdings. It would also establish standardized capital requirements to address credit and operational risks, set risk-management standards, and lay out rules for firms that safekeep the assets backing the tokens.