Fed Asks for Public Comment on Two Stablecoin Issuer Proposals

The Federal Reserve Board asked the public for feedback on Thursday on two proposals that would set rules for the stablecoin issuers it supervises. Both proposals put the GENIUS Act into practice. The Board released them at 2:30 p.m. EDT.

What the First Proposal Requires

According to the Federal Reserve Board's press release, the first proposal would require issuers to fully back their stablecoins with permitted reserve assets. Examples include short-term Treasury bills and certain other high-quality, liquid assets.

It would also set standardized capital requirements for credit and operational risks, along with risk management standards. Separate rules would cover firms that safekeep the assets behind the coins.

The proposal would also clarify which stablecoin and related activities Board-supervised banks are allowed to carry out.

Federal Reserve Board press release of September 24, 2026, screenshotted the same day.

The Second Proposal: Applying to Issue

The second proposal creates a tailored application process for Board-supervised banks that want to issue payment stablecoins. Applicants would submit a business plan, financial information and other documents.

It also sets up a process for appeals, hearings and final determinations on each application. The Board published a separate Federal Register notice for each proposal. One covers application procedures for insured banks seeking approval for a subsidiary to issue stablecoins. The other covers the Board's wider duties under the GENIUS Act.

The comment period closes 60 days after publication in the Federal Register. Until then, banks, issuers and the public can send feedback to the Board.

Governor Barr Backs It, With Concerns

Governor Michael S. Barr issued his own statement on the day. He said he supports the rulemaking as a step in the right direction. He also noted that in July the Board asked for comment on a separate proposal covering bank anti-money laundering programs.

"Stablecoins will only be stable if they can be reliably and promptly redeemed at par in a range of conditions," Barr wrote. He said this holds during periods of market stress and strain on an individual issuer.

He welcomed the reserve limits and the standardized capital rules. He wants public input on whether the rule covers interest rate and foreign currency risks. He also wants redemption rights spelled out clearly in the final version.

Barr flagged one more concern. The proposal would stop the Board from taking supervisory or enforcement action on an anti-money laundering gap unless the issue is "significant or systemic." He said that standard may make it harder to show a bank runs a compliant program.

The Market Behind the Rules

Stablecoins are already a very large market. CoinGecko lists the category at about $292.2 billion, with roughly $91 billion in 24-hour trading volume.

Tether's USDT leads with about $183.5 billion in market cap. USDC follows at around $75.1 billion.

CoinGecko stablecoin category page, screenshotted September 24, 2026.

Pegs held on the day. CoinGecko showed USDT at $0.9996 and USDC at $0.9998, and the category's market cap was flat over 24 hours.

The Board's release does not name any specific issuer. It describes proposals for Board-supervised issuers, so the practical reach depends on which firms apply and how the final rules read.

Governor Barr called the Board's proposal an important step in GENIUS Act implementation. He closed with a plain message. Further work will be required if stablecoins are to become reliable payment instruments.