The Federal Reserve Board announced on September 24, 2026 that it is requesting public comment on two proposed rules establishing a regulatory framework for payment stablecoin issuers under its supervision, implementing requirements under the Guiding and Establishing National Innovation for U.S. Stablecoins Act, or GENIUS Act.
The first proposal would require Board-supervised issuers to fully back stablecoins with permissible reserve assets, including short-term U.S. Treasury bills and other high-quality, liquid assets, while establishing standardized capital requirements and risk-management standards, according to the Federal Reserve.
It also addresses the GENIUS Act’s ban on paying interest or yield to holders: certain arrangements involving third parties would be presumed prohibited, a stance consistent with the OCC’s own separate proposal.
Both proposals were approved in unanimous board votes. Fed Governor Michael S. Barr said public input on reserve asset limitations, capital requirements, and interest rate and foreign currency risks would be useful, adding that while the proposal is an important step, further work will undoubtedly be required for stablecoins to become reliable payment instruments.
The Federal Reserve shared the announcement through its official X account:
A second proposal would establish a tailored application process for Board-supervised banks seeking approval to issue payment stablecoins, including business plan and financial information requirements, along with procedures for appeals, hearings, and final determinations. Both proposals are open for comment for 60 days after Federal Register publication.
What the Reserve and Capital Proposal Requires
The Fed identified short-term Treasury bills and other high-quality, liquid assets as examples of qualifying reserves, with the proposal including monthly reserve reporting certified by an issuer’s CEO and CFO. It also establishes requirements for firms that safeguard the assets backing payment stablecoins.
| Proposed Requirement | Focus |
| Reserve backing | Permissible liquid reserve assets |
| Capital | Credit and operational risks |
| Risk management | Controls for stablecoin activities |
| Interest/yield prohibition | Presumption against third-party arrangements |
| Reserve custody | Safeguarding backing assets |
Table 1. Main elements of the Federal Reserve’s proposed stablecoin framework.
The proposal applies specifically to issuers supervised by the Federal Reserve, worth understanding alongside Clarity Act versus GENIUS Act: what’s the difference, since it is not a universal rule covering every stablecoin issuer in the US.
How the Bank Application Process Would Work
The second proposal addresses how Board-supervised banks would apply for approval to issue payment stablecoins, requiring a business plan and financial information among other materials, and establishing procedures for appeals, hearings, and final determinations. This creates a formal pathway distinct from the prudential requirements the first proposal establishes.
Regulators Are Already Past Their Own Deadline
The GENIUS Act, enacted July 18, 2025, required regulators and Treasury to have rules in place by July 2026. Every agency has now missed that deadline, though each continues moving proposals forward.
The OCC expects a final rule by November 2026, Treasury sought comment on its own framework in August, and the FDIC Board approved its own notice of proposed rulemaking on April 7, 2026, addressing how deposit insurance applies to reserves at insured banks backing stablecoins.
| GENIUS Act Implementation Timeline | Date / Requirement |
| Law enacted | July 18, 2025 |
| Statutory rule deadline | July 2026 (missed by all agencies) |
| OCC final rule expected | November 2026 |
| Full enforcement expected | January 2027 |
Table 2. Key dates surrounding the Federal Reserve’s proposed stablecoin rules.
Austin Campbell, an adjunct professor at NYU Stern School of Business, said the GENIUS Act rollout deserves more attention than the CLARITY Act, whose own Senate cloture vote failed 49-50 on September 15, a separate but related track covered in UK versus U.S. stablecoin regulation.
Why the Interest and Yield Rules Matter for Issuers
Beyond reserves and capital, the Fed’s approach to prohibited interest and yield arrangements could reshape how issuers structure partnerships with exchanges and wallets that currently pass along stablecoin-related rewards to end users, and since the Fed’s stance echoes the OCC’s, issuers face a more consistent standard across both tracks.
What Comes Next for the Proposed Rules
The Federal Reserve will collect and evaluate public comments over the 60-day window before determining how to finalize the two proposals.
The final rules will determine how Board-supervised institutions can issue payment stablecoins, which assets can back them, how reserves must be safeguarded, and what capital and risk controls issuers must maintain, with the broader U.S. framework still involving multiple federal regulators depending on the issuer’s structure.
What this means for you: The Federal Reserve’s proposals would establish specific requirements for payment stablecoins issued by institutions under its supervision, covering reserve assets, capital, risk management, custody, interest and yield restrictions, and bank approval procedures. The proposals are not final, so the requirements could change during the public-comment and rulemaking process.
This article is for informational purposes only and does not constitute financial or investment advice. The Federal Reserve proposals are subject to public comment and may be revised before finalization. Stablecoins involve regulatory, liquidity, custody, operational, and market risks.
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