ENPAYMENTS, BANKING & DIGITAL ASSETS · SEPTEMBER 29, 2026
Federal Reserve Proposes Stablecoin Reserve, Capital, and Application Rules
The Federal Reserve requested comment on two proposals that would require permissible reserve assets, standardized capital and risk controls, safekeeping rules, and a tailored application process for Board-supervised bank stablecoin issuers.
What the Federal Reserve proposed on September 24
Source publication date: September 24, 2026. The Federal Reserve Board requested public comment on two proposals to implement its responsibilities for Board-supervised payment-stablecoin issuers under the GENIUS Act. The first would require full backing with specified permissible reserve assets, including short-term Treasury bills and certain other high-quality liquid assets, and would establish standardized capital and risk-management requirements. The proposal is not yet a final rule.
- 01Reserve assets would be restricted
- 02Capital and risk rules proposed
- 03Final requirements are not yet effective
Safekeeping and bank activities are part of the framework
The first proposal also addresses firms that safeguard stablecoin reserve assets and would clarify permissible stablecoin and related activities for Board-supervised banks. Reserve composition, custody, operational controls, liquidity, credit risk, and compliance can influence whether a token functions as expected during normal and stressed conditions. Full reserve backing does not eliminate technology, fraud, legal, settlement, redemption, or counterparty risk.
A separate process would govern bank applications
The second proposal would create a tailored application process for Board-supervised banks seeking approval for a subsidiary to issue payment stablecoins. Applicants would need to provide a business plan and financial information, with procedures for appeals, hearings, and final determinations. The comment period is scheduled to close 60 days after Federal Register publication, so the proposal should not be represented as a current approval or authorization for any particular issuer.
Practical borrower and investor takeaway
Inventory every payment, custody, exchange, banking, and wallet relationship before moving operating cash, reserves, customer funds, collateral proceeds, or loan proceeds into a stablecoin workflow. Confirm lender covenants, permitted accounts, cash-control requirements, redemption rights, reserve and custody disclosures, cybersecurity, fraud controls, accounting, tax, and legal treatment with qualified parties. Maintain conventional liquidity and reconciliation controls; a proposed federal framework does not make every token, issuer, platform, or transaction equivalent to an insured bank deposit.
Businesses considering stablecoin payments or treasury use should keep operating liquidity and loan proceeds in permitted, well-controlled channels until legal, custody, counterparty, accounting, tax, and lender-consent questions are resolved.
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.