Fed Unveils Full Reserve Rules for Stablecoin Issuers

Summary

• The Federal Reserve proposed rules on September 24 2026 that require Board-supervised payment stablecoin issuers to fully back tokens with permissible reserve assets.
• The measures cover reserves, capital, risk management, and bank issuance applications under the GENIUS Act.
• The OCC released a parallel framework addressing licensing, custody, and ongoing supervision for prospective issuers.

The Federal Reserve released its proposal on September 24 2026. It requires Board-supervised payment stablecoin issuers to fully back their tokens with certain permissible reserve assets. The move targets payment stablecoins specifically.

It forms part of broader US efforts to strengthen stablecoin regulation. The Federal Reserve and OCC acted amid rising institutional use of stablecoins.

Context

US stablecoin regulation has advanced in stages under the GENIUS Act. Earlier legislative drafts outlined high-level oversight goals. Yet detailed implementation rules remained pending until the recent Federal Reserve and OCC releases.

These proposals respond directly to concerns that inadequate reserves could trigger market instability. They align with ongoing federal reserve work on crypto policy.

They aim to create a supervised pathway for banks and nonbank issuers.

Details

The Federal Reserve proposal sets out explicit requirements for reserves. It also covers capital levels, risk management programs, and the process supervised banks must follow when applying to issue stablecoins. Permissible reserve assets are limited to specified high-quality instruments.

These assets must match the value of outstanding tokens at all times. The OCC framework complements the Federal Reserve rules by detailing licensing procedures, custody standards, and continuous supervision for firms seeking to issue stablecoins.

Both agencies tie their approaches to the GENIUS Act framework.

"The first proposal would require that Board-supervised payment stablecoin issuers fully back their stablecoins with certain permissible reserve assets."

, Federal Reserve (www.federalreserve.gov)

Implementation timing remains subject to Senate bill developments that could alter final scope or pace.

The Federal Reserve and OCC will accept comments on the proposals before finalizing rules. Market participants should monitor comment outcomes and any legislative updates that intersect with the GENIUS Act.