The US Federal Reserve has taken a major step toward implementing last year’s federal stablecoin statute. On September 24, 2026, the Board of Governors asked the public to weigh in on two draft rules that would apply to payment-stablecoin issuers the central bank already oversees.
The proposals sit inside the framework created by the Guiding and Establishing National Innovation for US Stablecoins Act, known as the GENIUS Act, which became law in July 2025 and is meant to bring dollar-linked tokens under a consistent national regime.
The first draft focuses on the financial foundation of an issuer.
It would require every Board-supervised permitted payment stablecoin issuer to keep its tokens fully matched, at all times, by a pool of allowed reserve assets.
Those holdings would be limited to highly liquid instruments, such as short-dated Treasury bills and other high-quality assets that regulators view as capable of supporting a reliable peg.
The same proposal would impose uniform capital standards aimed at credit and operational exposures that arise from issuing and redeeming tokens.
It would also set risk-management expectations and spell out how supervised firms may hold reserve assets in custody.
In addition, the draft would clarify which related activities member banks may conduct without running afoul of existing banking restrictions.
A second, narrower proposal would create a specialized application path for insured state member banks that want a subsidiary to issue payment stablecoins.
Applicants would have to file a business plan, financial statements, governance and risk policies, capital-structure details, and other supporting materials.
The draft also outlines how appeals, hearings, and final decisions would work so that the review process is predictable and focused on safety and soundness.
Both notices of proposed rulemaking would remain open for comment for 60 days after they appear in the Federal Register.
The Board approved their publication unanimously.
Governor Michael S. Barr, while supporting the package as progress under the statute, stressed that public feedback will be especially useful on reserve limits and capital design, including whether interest-rate and foreign-currency risks are handled well enough.
He also argued that redemption rights must be unmistakable if holders are to trust that they can convert tokens back into dollars even in stressed markets.
Barr added that more work will still be needed before stablecoins can function as dependable payment tools.
The GENIUS Act already requires one-to-one backing with a short list of low-risk assets and restricts issuance to licensed “permitted” issuers. Federal agencies were supposed to finish implementing rules earlier in 2026; several, including the OCC, FDIC, NCUA, and Treasury, have issued their own proposals.
The Fed’s action fills a remaining gap for institutions under its supervision and for banks that want to enter the market through subsidiaries.
Taken together, the drafts aim to make tokenized dollars more bank-like: fully reserved, capitalized against identifiable risks, and subject to examination. Supporters see that as a way to reduce run risk and give households and businesses a safer digital payment option.
Critics and market participants will now have two months to argue over calibration—how diversified reserves must be, how high capital floors should sit for new issuers, and how tightly third-party reward programs should be constrained given the statute’s ban on paying yield on the tokens themselves. The outcome will help determine whether US payment stablecoins remain a niche product or become a regulated part of everyday settlement.