Federal Reserve proposes two stablecoin rule packages covering issuer approval, reserves and capital
The Federal Reserve published two September 2026 proposals on stablecoin issuer approval and on reserve, capital and redemption rules, both open for 60 days of comment.
Why it matters
The two notices would set the first US approval test and operating requirements for stablecoin issuers supervised by the Fed, and the capital and redemption figures give issuers and partners concrete numbers to plan against. The deposit threshold for the transition period and the two-business-day redemption limit both fall inside the comment window, so the terms can still change before they take effect. Separately, the dispute over whether US restrictions cost $1 trillion in potential dollar demand is an argument by a Circle executive, not a measured figure.
Key facts
The Federal Reserve Board of Governors published two stablecoin proposals on September 24 at 2:30 p.m. Eastern time.
Reported by Crypto.News
An insured state member bank would seek Fed approval for a stablecoin subsidiary, with 120 days for a decision after a complete application.
120 daysReported by Crypto.News
The proposed initial capital floor is $5 million for a newly approved issuer during its first three years.
5,000,000 USDReported by Crypto.News
A proposed 2% capital charge on uninsured reserve deposits would equal $20 million on a $1 billion exposure.
2 %Reported by Crypto.News
A state issuer passing $10 billion in outstanding coins would face a proposed 360-day transition period or stop net new issuance.
10,000,000,000 USDReported by Crypto.News
An issuer whose reserves fall below the value of its outstanding tokens would have 24 hours to notify the Fed and submit a restoration plan, then begin liquidating reserves and redeeming tokens by 5 p.m. the next business day.
24 hoursReported by CryptoSlate
What happened
The Board of Governors published two stablecoin proposals on September 24 at 2:30 p.m. Eastern time, and Crypto.News reported them as a 60-page application notice (Docket R-1900, RIN 7100-AH30) plus a separate 392-page notice covering reserves, capital, redemption and custody under the GENIUS Act. Bitcoin Insider, citing crypto.news and Unchained, said the draft sets issuer eligibility standards and capital charges and presumes many yield-sharing arrangements are prohibited. The application route is for an insured state member bank seeking approval for a stablecoin subsidiary, with 120 days for a decision after a complete application, and a proposed $5 million initial capital floor for a newly approved issuer in its first three years. The proposal also sets a 2% capital charge on uninsured reserve deposits, which Crypto.News worked out as $20 million on a $1 billion exposure, and a 360-day transition for a state issuer passing $10 billion in outstanding coins, after which it would stop net new issuance. CryptoSlate reported the operating rules contain a reserve clock: an issuer whose reserves fall below the value of its outstanding tokens has 24 hours to notify the Fed and submit a restoration plan, then must start liquidating reserves and redeeming tokens by 5 p.m. the next business day unless it closes the gap or the Fed directs otherwise, a window the Fed says is often under 48 hours, and it may keep minting during that window because a visible halt on-chain could accelerate a run. The same outlet reported a general two-business-day redemption limit for Board-supervised issuers, though it also noted that exchange customers face venue terms first and that Circle's direct USDC redemption requires an eligible Circle Mint account. What remains unsettled is the framing rather than the numbers: Crypto.News and CryptoSlate treat this as routine rulemaking with a 60-day comment period, while Circle executive Nikhil Chandhok said at a Moonshots LIVE event that resistance to dollar stablecoins could cost the United States as much as $1 trillion in overseas demand, an argument about potential demand that he did not tie to one specific rule in the remarks.
How the story developed
- Official statement
Federal Reserve publishes two stablecoin proposals
One notice covers approval for a stablecoin subsidiary of an insured state member bank, the other covers reserve, capital, redemption and custody requirements under the GENIUS Act. Both are proposals open for comment, not licences granted or final regulations.
- First report
First report by Crypto.News
The Fed has drafted stablecoin rules. Who can qualify to issue one?
- Update
Bitcoin Insider relays the draft through crypto.news and Unchained
The report says the draft presumes many yield-sharing arrangements between issuers and outside parties are prohibited.
- Independent corroboration
Independently corroborated by CryptoSlate
Fed proposed stablecoin rule could trigger a 48-hour liquidation run
- Update
CryptoSlate details the reserve shortfall clock
The proposal lets an issuer keep minting during the rescue window, and the Fed ties that to the public nature of blockchains, since a visible halt on-chain could speed up a run.
- Update
Circle executive argues US restrictions could cost $1 trillion in dollar demand
Nikhil Chandhok said at a Moonshots LIVE event that roughly $3 trillion sits in international bank transfers at any moment and that people outside the US could bring $1 trillion into dollar stablecoins. His $1 trillion figure concerns potential demand and he did not identify one rule in the supplied remarks as its cause.
- Update
Proposal appears in the Federal Register with a two-business-day redemption limit
Under proposed section 247.12, a Board-supervised payment stablecoin issuer would have to disclose its redemption procedure and its normal redemption period after a request could not exceed two business days. Andersen Institute researchers counted $76 billion of 12 reserve-backed dollar stablecoins at centralized exchanges in a July 28 snapshot and called it a lower bound.
How coverage built up
Independent sources over time, counted the way the consensus panel counts them: a republication of a wire story does not move the line.
- 25 Sept 2026, 10:11 UTC: Crypto.News — 1 independent source, 1 reports
- 25 Sept 2026, 10:27 UTC: Bitcoin Insider — 2 independent sources, 2 reports
- 26 Sept 2026, 17:55 UTC: CryptoSlate — 3 independent sources, 3 reports
Affected entities
Also mentioned: Coinbase, ARK Invest
Original sources
| Publisher | Report | Role | Published |
|---|---|---|---|
| Crypto.News Crypto media | The Fed has drafted stablecoin rules. Who can qualify to issue one? | Original | |
| CryptoSlate Crypto media | Fed proposed stablecoin rule could trigger a 48-hour liquidation run | Independent | |
| CryptoSlate Crypto media | Fed guarantees 2-day stablecoin payouts, but $76B remains blocked | Independent | |
| Crypto.News Crypto media | Circle executive says stablecoin restrictions could cost the US $1 trillion | Independent | |
| Bitcoin Insider Aggregator | Fed Drafts Stablecoin Rules Setting Issuer Qualifications and Capital Charges | Syndicated |
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