Fed proposes new capital, redemption rules for stablecoin issuers
The Federal Reserve proposed capital, redemption, disclosure, and supervisory rules for stablecoin issuers under its oversight as it implements the GENIUS Act. The law already requires 1:1 reserve backing in approved assets such as cash, deposits, and short-term Treasurys; the Fed’s proposal adds more detailed risk controls. Issuers would face an operational-risk capital charge of 2% on the first $20 billion in stablecoins, 1.5% on the next $30 billion, and 1% above $50 billion, plus other credit and operational capital requirements. Redemptions would generally need to be completed within two business days. If reserves fall short, issuers must notify the Fed and either restore backing or liquidate reserves and redeem tokens. Monthly reserve and circulation reports would be required, with audit and executive certification. A separate proposal sets approval procedures for Fed-supervised banks issuing stablecoins through subsidiaries. Public comment is open for 60 days.
