Fed seeks comment on stablecoin rules Draft

The first proposal would require Board-supervised payment stablecoin issuers to fully back their stablecoins with permissible reserve assets such as short-term Treasury bills and other high-quality, liquid assets.

It would also set standardized capital requirements to address credit and operational risks and establish risk management standards in accordance with the law.

Separately, the proposal would introduce rules for Board-supervised firms that safekeep assets backing payment stablecoins and clarify the permissibility of stablecoin-related activities for Board-supervised banks.

The second proposal outlines a tailored application process for Board-supervised banks seeking to issue payment stablecoins, requiring submission of a business plan and financial information.

It also establishes procedures for appeals, hearings, and final determinations on applications.

The comment period will close 60 days after the proposals are published in the Federal Register.