Fed outlines new rules for payment stablecoins

Generic digital coin on circuit board illustrating new Fed rules for payment stablecoins and bank-backed digital cash

Key Points

01Fed proposes full-reserve backing for certain payment stablecoins
02Permissible reserves include short-term Treasuries and liquid assets
03New capital requirements target credit and operational risks
04Tailored approval process set out for banks issuing stablecoins

Fed advances regulatory framework for stablecoins

The Federal Reserve has proposed a new set of rules to govern payment stablecoins, marking another step in the effort to place these digital tokens within a clear regulatory framework. Announced on Sept. 24, 2026, the measures focus on the reserve assets, capital requirements and permissible activities associated with issuing and handling dollar‑pegged stablecoins under Federal Reserve supervision.

A central element of the proposals is a requirement that certain payment stablecoins issued by firms supervised by the Fed be fully backed by permissible reserve assets. These reserves would need to consist of short-term U.S. Treasury bills and other high-quality, liquid assets, with the intent of supporting the stability and redeemability of the tokens.

Reserve, capital and risk standards for issuers

Beyond reserve composition, the Fed is seeking to establish standardized capital requirements for stablecoin activities. These requirements are aimed at covering specific credit and operational risks that can arise when firms issue or manage payment stablecoins, including risks linked to the underlying assets and the systems used to process transactions.

The proposals also address the role of entities that hold or safeguard the assets backing stablecoins. Firms that custody or safeguard stablecoin reserves would be subject to defined expectations, designed to ensure that reserve assets are properly protected and available to support the stablecoins they back.

Pathway for banks to issue payment stablecoins

In a separate but related step, the Fed has outlined a tailored application and approval process for banks it supervises that seek to issue payment stablecoins. This proposed pathway is intended to clarify how such banks can obtain authorization to conduct stablecoin activities under the oversight of the Federal Reserve.

The same proposal clarifies which stablecoin-related activities are considered permissible for Fed-supervised banks. By setting out which activities are allowed and under what conditions, the Fed aims to give banks a clearer framework for engaging in payment stablecoin issuance and related services.

Next steps in rulemaking and public input

The Federal Reserve plans to publish these proposals in the Federal Register, a standard step in the U.S. rulemaking process. Once published, the measures will be open for a public comment period, giving market participants, financial institutions and other stakeholders an opportunity to provide feedback.

Officials have described these actions as further progress in building a regulatory structure for payment stablecoins in the United States. The combination of reserve requirements, capital standards, clarified bank permissions and custody expectations is intended to shape how dollar‑linked digital tokens operate within the broader financial system.

Key Takeaways

01The Fed is moving to require full, high-quality reserves for certain supervised payment stablecoins, anchoring tokens to liquid assets such as short-term Treasuries.
02New capital and risk-management standards signal that stablecoin issuance will be treated as a regulated financial activity with defined prudential safeguards.
03By detailing a tailored approval pathway and permissible activities for banks, the Fed is preparing a clearer route for traditional institutions to participate in stablecoin markets.

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