Fed staff note proposes framework for classifying stablecoins in M1 or M2 money supply
Federal Reserve researchers outlined a framework for including payment stablecoins in US monetary aggregates, dependent on economic use and subject to reserve double-counting adjustments.
Why it matters
If adopted in the future, including stablecoins in M1 or M2 could alter how policymakers and markets interpret dollar liquidity figures. The framework highlights that a statistical increase in money supply could partly reflect reclassification of existing dollars rather than newly created purchasing power.
Key facts
Federal Reserve researchers published a staff note proposing a framework for how payment stablecoins could be classified within US M1 or M2 money supply.
Reported by CryptoSlate
Payment stablecoins are not currently included in US M1 or M2 monetary aggregates.
Reported by CryptoSlate
Everyday payment use would support M1 classification of stablecoins, while short-term value storage would point toward M2.
Reported by Crypto.News
Reserves backing stablecoins could be counted twice — once in banking reserves and again as the stablecoin itself.
Reported by CryptoSlate
Tokenized bank deposits already appear within existing monetary aggregates because they remain legally conventional deposits.
Reported by Crypto.News
Retail tokenized money market funds are already included within M2 alongside traditional retail funds.
Reported by Crypto.News
Global stablecoin circulation and complex blockchain transfers leave gaps in measuring US stablecoin use.
Reported by CryptoSlate
The paper reflects the authors' personal views and does not represent a Federal Reserve policy decision or active deliberation.
Reported by CryptoSlate
What happened
Federal Reserve researchers published a staff note on Sept. 4 proposing a framework for how payment stablecoins could be classified within the US M1 or M2 money supply. The authors, Kristen Payne and Mary-Frances Styczynski, argued that whether stablecoins qualify for inclusion would depend on their economic function — everyday payments pointing toward M1, short-term value storage toward M2. Both CryptoSlate and Crypto.News reported that reserve assets backing stablecoins could be counted twice: once as reserves in the banking system and again as the stablecoin itself entering monetary aggregates. The researchers also flagged that global stablecoin circulation and complex blockchain transfers create measurement gaps, and that tokenized bank deposits and tokenized money market funds are already included in existing monetary aggregates. Both outlets stressed that the paper reflects the authors' personal views and is not a Federal Reserve policy decision or active deliberation over changing the monetary aggregates.
How the story developed
- Official statement
Fed researchers publish staff note on stablecoin classification in monetary aggregates
A staff note by Kristen Payne and Mary-Frances Styczynski proposes a framework for how payment stablecoins could enter M1 or M2.
- First report
First report by CryptoSlate
Fed stablecoin research exposes how the same dollar could count twice in M1 or M2
- Update
CryptoSlate reports on Fed stablecoin research
CryptoSlate covers the staff note, focusing on the risk of double-counting dollars already measured in monetary aggregates.
- Independent corroboration
Independently corroborated by Crypto.News
Stablecoins could enter M1 or M2, Fed study says
- Update
Crypto.News provides additional detail on the framework and named authors
Crypto.News reports on the study with additional context on M1 versus M2 classification criteria and existing inclusions of tokenized products.
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.
- 5 Sept 2026, 16:45 UTC: CryptoSlate — 1 independent source, 1 reports
- 6 Sept 2026, 08:32 UTC: Crypto.News — 2 independent sources, 2 reports
Affected entities
Also mentioned: Base
Original sources
| Publisher | Report | Role | Published |
|---|---|---|---|
| CryptoSlate Crypto media | Fed stablecoin research exposes how the same dollar could count twice in M1 or M2 | Original | |
| Crypto.News Crypto media | Stablecoins could enter M1 or M2, Fed study says | Independent |
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