BTC 
ETH 
XRP
SOL 
DOGE - This topic is empty.
-
Posts
-
What happened
The Federal Reserve took a concrete step toward making dollar-pegged stablecoins a regulated part of the U.S. financial system on Thursday, opening two proposed rules for public comment under the GENIUS Act, the federal stablecoin law signed in July 2025. The Board approved publication in unanimous votes, and comments will be accepted for 60 days after the proposals appear in the Federal Register.
The first proposal targets Board-supervised payment stablecoin issuers: full one-to-one backing in permissible high-quality liquid assets — U.S. dollars, balances held at the Fed, insured deposits, Treasuries maturing within 93 days, and certain Treasury-backed repurchase agreements. It adds standardized capital requirements: a 2% credit-risk charge on uninsured deposits and undercollateralized reverse repos, plus an operational-risk charge of 1% to 2% of outstanding stablecoins depending on issuer size. Issuers would have to publish redemption policies guaranteeing redemption within two business days, and new rules would cover the firms safekeeping reserve assets.
The second proposal creates a tailored application process for Board-supervised banks that want to issue payment stablecoins through subsidiaries — with business plans, financial disclosures, and formal appeals procedures. The GENIUS Act gives the Fed 120 days to decide on a complete application before it is deemed approved. Governor Michael Barr said public input will be especially useful on reserve-asset limits and whether the rule adequately addresses interest-rate and foreign-currency risks.
Why it matters
This is the rule-writing phase of crypto’s biggest U.S. legislative win, and it is moving ahead even though the CLARITY Act failed to advance in the Senate on September 15. Regulators are implementing the framework they already have: the SEC’s tokenization exemption relief, and now the Fed’s stablecoin rulebook. For investors, credible one-to-one reserve standards and two-day redemption guarantees shrink the tail risk of another de-peg event — the scenario that would send stablecoin capital fleeing back to T-bills and money-market funds. For banks, the formal application path is an open invitation to enter issuance, which over time puts competitive pressure on incumbents like Tether and Circle. Related reading: SEC Unveils Token Taxonomy: ETH, SOL, XRP, DOGE as Digital Commodities and Tracking the CLARITY Act and Crypto Regulation.
What to watch
The 60-day comment window — watch for industry pushback on the two-day redemption standard and the 1–2% operational-risk capital charge, which could reshape the final rules. The Office of the Comptroller of the Currency is racing to finalize its own stablecoin rules by November, and Treasury has cited January 18, 2027 as the effective date for key issuer restrictions. Would you trust a Fed-supervised bank-issued stablecoin over Tether or USDC? Tell us why in the comments.
Sources:
Investor’s Business Daily
CryptoDaily
PYMNTSAuto-posted by the Bull Lounge news desk. Not financial advice.
Log in to vote
