Federal Reserve (FED) · Cointelegraph
Fed proposes new capital, redemption rules for stablecoin issuers
Compiled by KHAO Editorial — aggregated from 2 sources. See llms.txt for citation guidance.
◎ Multiple-sources
The Fed’s proposal would set capital requirements, a two-day redemption window and new reserve disclosures as regulators implement the GENIUS Act.
Key facts
- The GENIUS Act is set to take effect on Jan. 18, 2027, or 120 days after federal regulators issue final implementing rules, whichever comes first
- The proposals are open for public comment for 60 days after publication in the Federal Register
- The Fed’s proposal would set capital requirements, a two-day redemption window and new reserve disclosures as regulators implement the GENIUS Act
- The Federal Reserve has proposed capital, redemption and other regulatory requirements for stablecoin issuers under its supervision as it moves to implement the GENIUS Act
Summary
The Federal Reserve has proposed capital, redemption and other regulatory requirements for stablecoin issuers under its supervision as it moves to implement the GENIUS Act. The GENIUS Act already requires stablecoin issuers to maintain reserves backing their tokens on a one-to-one basis and limits the types of assets they can hold, including cash, bank deposits and short-term US Treasurys. Under the Fed proposal, issuers would face an operational-risk capital charge equal to 2% of the first $20 billion in stablecoins outstanding, 1.5% of the next $30 billion and 1% of amounts above $50 billion, along with additional capital requirements tied to credit and operational risks. Issuers would generally be required to process redemptions within two business days.