Fed seeks comment on payment stablecoins rules

TLDR

The Federal Reserve has put out draft rules for payment stablecoins and is asking the public to comment before they are finalized.

1. The proposals would require Fed?supervised stablecoin issuers to be fully reserved, meet standardized risk rules, and, for banks, go through a formal approval process.
2. A separate draft crisis regime could force troubled issuers into rapid, pro?rata liquidation within roughly 48 hours if reserves fall below outstanding tokens.
3. The rules are not final, apply only to certain issuers under the GENIUS Act, and will be shaped by a 60?day comment period and parallel work by other regulators.

Deep Dive

1. What The Fed Proposed

The Fed has requested public comment on two packages that together define a regulatory framework for payment stablecoin issuers it supervises under the GENIUS Act, the US stablecoin law passed in 2025.[](https://cointelegraph.com/news/fed-requests-comment-on-two-proposals-for-stablecoin-issuers-under-genius-act)

First, issuers would have to fully back stablecoins with high?quality, liquid assets such as short?term US Treasuries, plus hold capital against operational and credit risks and follow formal risk?management standards.[](https://cointelegraph.com/news/fed-requests-comment-on-two-proposals-for-stablecoin-issuers-under-genius-act)

Second, banks that want to issue payment stablecoins would need to apply, file business plans and financials, and follow defined procedures for approvals, hearings, and appeals.[](https://cointelegraph.com/news/fed-requests-comment-on-two-proposals-for-stablecoin-issuers-under-genius-act) The comment window is 60 days after Federal Register publication.

2. Crisis Rules And Capital Costs

A companion proposal describes what happens if reserves ever fall short. Fed?supervised issuers must mark reserves at least daily; if a shortfall appears, they have 24 hours to notify the Fed and propose a fix.[](https://cryptoslate.com/fed-proposed-stablecoin-rule-could-trigger-a-48-hour-liquidation-run)

If the gap is not closed, liquidation and redemptions must start by 5 p.m. the next business day, effectively creating a less?than?48?hour crisis clock. Once liquidation starts, minting stops and all holders share losses pro rata to prevent early redeemers shifting losses to others.[](https://cryptoslate.com/fed-proposed-stablecoin-rule-could-trigger-a-48-hour-liquidation-run)

Separately, the Fed proposes an operational?risk capital charge on circulation, starting at 2% of the first 20 billion dollars of tokens, scaling down slightly for larger amounts.[](https://cryptoslate.com/fed-stablecoin-proposal-would-make-circulation-a-capital-cost-for-supervised-issuers)

3. Scope, Timeline, And Market Impact

These rules would initially cover a subset of issuers that fall under Fed supervision via the GENIUS Act, not every global stablecoin immediately. Other US regulators, like the OCC, are developing parallel frameworks that may apply to different entities.[](https://cryptoslate.com/fed-stablecoin-proposal-would-make-circulation-a-capital-cost-for-supervised-issuers)

For crypto markets, stricter reserve, redemption, and capital rules could favor large, well?capitalized, dollar?backed coins and make regulated payment stablecoins a distinct tier from offshore or lightly supervised tokens.

Conclusion

The Feds request for comment marks a shift from ad hoc oversight toward a formal, bank?style regime for payment stablecoins in the US.

If adopted, these rules could make regulated stablecoins safer and more systemically integrated, but also more expensive to issue, potentially concentrating the market in a few large, well?capitalized players while leaving offshore tokens as a separate, higher?risk tier.