PAYMENTS, BANKING & DIGITAL ASSETS · SEPTEMBER 26, 2026
Fed Proposes Reserve, Capital, and Application Rules for Bank Stablecoin Issuers
The Federal Reserve proposed full backing with permissible reserve assets, standardized capital and risk-management requirements, safekeeping rules, and a tailored bank application process for payment stablecoin issuance.
What the Federal Reserve released on September 24
Source publication date: September 24, 2026. The Federal Reserve requested public comment on two proposals implementing responsibilities for Board-supervised payment stablecoin issuers under the GENIUS Act. The first would establish a regulatory framework for issuance and related activities. The second would create a tailored application process for Board-supervised insured depository institutions seeking to issue through a subsidiary. Comments are due 60 days after publication in the Federal Register.
- 01Full reserve backing proposed
- 02Capital and risk standards proposed
- 03Rules are not yet final
Reserve, capital, and risk standards are central to the framework
The first proposal would require stablecoins to be fully backed by specified permissible reserve assets, including short-term Treasury bills and certain other high-quality liquid assets. It would establish standardized capital requirements for credit and operational risks, broader risk-management standards, and rules for Board-supervised firms that safekeep reserve assets. It would also clarify permissible stablecoin-related activities for Board-supervised banks.
The bank application process would require operating evidence
A supervised bank applicant would need to submit a business plan, financial information, and other documentation. The proposal would also establish processes for appeals, hearings, and final determinations. These are proposals, not final rules or approvals for a particular issuer. The announcement does not guarantee a token's redemption value, liquidity, custody protections, technology performance, legal treatment, or suitability for a business payment workflow.
Practical borrower and investor takeaway
Before accepting or holding a payment stablecoin, identify the issuer and supervisor, reserve composition and reporting, redemption rights and timing, fees, custody and wallet structure, settlement finality, cybersecurity, sanctions and identity controls, operational continuity, and treatment in insolvency. Keep payroll, taxes, debt service, and closing funds in forms accepted by the relevant counterparties and lender. Monitor final rules, but do not build an immediate financing or treasury plan around proposed requirements.
Businesses and investors should treat the proposals as pending rules and verify issuer supervision, reserve assets, redemption, custody, liquidity, operational controls, and contract terms before relying on a stablecoin for treasury or settlement.
Discuss a financing need →This independent summary is based on the cited source and is provided for general educational purposes only. Terms and program requirements may change.