Fed Proposes Tougher Stablecoin Rules as US Payment Framework Takes Shape

The Federal Reserve proposed new stablecoin rules on Thursday as U.S. regulators continue building a federal framework for digital payments.

Under the plan, payment stablecoin issuers would need enough approved reserves to cover their tokens in full. The rules would also bring in capital requirements and set conditions for banks holding reserves for stablecoin companies.

Reserve Rules Take Shape

Short-term U.S. Treasury bills would be among the assets issuers could use to back their stablecoins. Companies would also need to meet capital requirements tied to credit and operational risks.

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Banks under Fed supervision would face their own requirements when holding stablecoin reserves. The proposal also spells out the stablecoin activities those banks could conduct.

A bank seeking to i…

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