The United States Federal Reserve (Fed) proposed, on September 24, 2026, the repayment of stablecoins within two business days for the issuers it supervises. The project provides for exceptio
The United States Federal Reserve (Fed) proposed, on September 24, 2026, the repayment of stablecoins within two business days for the issuers it supervises. The project provides for exceptions and remains subject to consultation. Therefore, this deadline does not yet constitute an obligation applicable to all dollar stablecoins.
The text published in the Federal Register on September 29 specifies the Fed’s rules for stablecoins: repayment, reserve, and capital. It implements the GENIUS Act, of which Cointribune presented the provisions at the Senate voting stage. A second proposal organizes the approval of the concerned banking subsidiaries.
A stablecoin aims to maintain a stable value relative to a reference asset, here a currency. Its repayment consists of obtaining this value from the issuer. It differs from a sale on a platform, whose price depends on the market.
The project sets the normal deadline at two business days after the request date. It targets repayment by the issuer or their representative, not exchanges between buyers and sellers. A rapid transfer on a blockchain and repayment in currency are two different operations.
Section 247.12 however provides exceptions. Identity or sanction compliance checks may require more time. A delay independent of the issuer may also be accepted, subject to reasonable efforts to resolve it. A mere increase in the number of requests is not sufficient to justify this exception.
The Fed could on its side extend the deadline to protect the issuer’s solidity, financial stability, or public interest.
The value of reserve assets should cover at least 100% of the nominal value of stablecoins in circulation, at all times. For one billion dollars of tokens issued, this represents at least one billion dollars of admissible assets.
The Fed services memo cites cash in dollars and balances with the Fed. It admits U.S. Treasury securities with a residual maturity of 93 days or less. Deposits with insured institutions and certain investments guaranteed by Treasury securities would be admitted. A deposit with an insured bank may exceed the insurance ceiling.
Capital would serve to absorb losses. The component related to issuance volume would start at 2% on the first 20 billion dollars. It would drop to 1.5% on the next 30 billion, then to 1% thereafter. This scale does not summarize the total requirement: other income outside the reserve, operational losses, and credit risks also intervene. The full calculation appears in sections 247.15 to 247.18 of the project.
The interest ban would also be targeted. The issuer could not pay for mere holding, use, or custody of its stablecoin. The text extends to certain arrangements with third parties, without prohibiting all paid services using stablecoins.
The prudential rules described concern authorized subsidiaries of state-chartered banks, members of the Fed, and whose deposits are insured. They extend to some state-chartered deposit institutions, uninsured, which move to the federal regime. A provision of the project on linked sales would have a broader scope, covering all authorized issuers.
For other actors, the competent authority depends on their status. Two examples show why the stablecoin’s trade name is not enough. According to Tether’s announcement on January 27, 2026, USA₮ is issued by Anchorage Digital Bank. This token intended for the U.S. market is distinct from USDT.
Circle announced on July 10 the final approval of its national trust bank by the OCC, the supervisor of national banks. The announcement first describes asset custody activity, with reserve management considered later. It does not alone allow concluding that USDC issuance now falls under this bank.
The market far exceeds the Fed’s perimeter alone. According to DefiLlama, consulted on October 5, 2026, its capitalization reached about $307.1 billion. USDT represented 184 billion, and USDC 74.2 billion.
Facing the Fed’s project on stablecoins, the relevant European comparison concerns electronic money tokens, or EMTs, which refer to a single official currency. It does not extend indiscriminately to all crypto-assets classified as stablecoins.
Compared point Fed project for concerned issuers MiCA for EMTs Repayment Two business days after the request date, with exceptions Right to repayment at any time and at par, according to Article 49 Covering assets Admissible assets covering at least the nominal value of tokens Article 54 provides at least 30% of funds in segregated accounts with credit institutions; the balance in safe, liquid, and low-risk assets Interest Ban targeting the issuer for mere holding, use, or custody; certain arrangements with third parties are also targeted Ban for issuers and crypto-asset service providers, according to Article 50 Fed project; MiCA, Article 49, Article 50, Article 54. Consulted on October 5, 2026.The European threshold of 30% does not constitute an overall coverage rate of 30%. It concerns the distribution of funds. Additional requirements apply to electronic money institutions issuing significant EMTs, according to Article 58.
The 10 billion threshold does not come from the Fed’s stablecoins rules, but from the law. The GENIUS Act opens a path to supervision by the states. It concerns issuers whose consolidated outstanding does not exceed $10 billion, if the local regime is certified. Transition and exemption mechanisms exist beyond the threshold.
The interim rule published by the Treasury on September 30 organizes the review of these certifications. It does not create this threshold. It came into force that day. The text however conditions the acceptance of certifications on administrative approval of data collection.
Debates also focus on effective protection of holders. Governor Michael Barr supports the Fed’s stablecoins proposal, while asking to clarify repayment rights. He criticizes the criterion that limits some supervisor interventions to anti-money laundering failures deemed significant or systemic.
Stablecoins will only be stable if they can be reliably and quickly repaid, at par, in various circumstances.
Michael Barr, Federal Reserve Governor, statement of September 24, 2026
The issuance regulation accompanies a broader debate on the effects of stablecoins on monetary policy. On timing, Jonathan Gould announced in August that the OCC planned to publish its final rule by November. This is an announced schedule, not an assured adoption. The Fed’s consultation on stablecoins ends on November 30, 2026. The GENIUS Act will come into force no later than January 18, 2027. It can apply earlier, 120 days after adoption of the final federal rules. Some provisions have their own schedules.
