Federal Reserve consults on stablecoin reserves and bank approvals

The Federal Reserve Board opened a public consultation on 24 September 2026 on two proposals governing payment stablecoin issuers under its supervision. The plans, drawn up under the GENIUS Act, cover the assets backing those stablecoins, capital and risk-management requirements, and applications by banks seeking to issue them. They are proposals, not final rules. [1]

The first proposal would require issuers to fully back their payment stablecoins with permitted reserve assets. The Board named short-term US Treasury bills and certain other high-quality, liquid assets as examples, rather than providing a complete list in its announcement.

That proposal would also introduce standardised capital requirements intended to address certain credit and operational risks, alongside risk-management standards. The announcement does not specify capital amounts or how they would be calculated. [1]

It would set rules for Board-supervised firms that safeguard assets backing payment stablecoins and clarify which stablecoin and related activities banks under the Board’s supervision may undertake. The release does not identify the activities that would be permitted or restricted.

The second proposal concerns the application process for Board-supervised banks seeking to issue payment stablecoins. Applicants would have to submit a business plan, financial information and other documents. It would also establish procedures for appeals, hearings and final decisions on applications, although the announcement does not set out detailed approval criteria or processing deadlines. [1]