Fed Proposes Capital Charges and Bank Approval Rules for Stablecoins
Federal Reserve proposes capital charges and approval rules for stablecoins
The Federal Reserve has proposed capital charges and bank approval rules for stablecoins, according to The Defiant. A stablecoin is a crypto token designed to hold a steady value, usually tied to a government currency such as the US dollar.
Under the proposal, covered issuers would generally have two business days to redeem tokens. "Covered issuers" refers to the stablecoin issuers that would fall under the new rules.
Bank applications would follow the 120-day decision clock of the GENIUS Act, the source says.
Key points from the proposal
- Capital charges are part of the proposed framework for stablecoins.
- The proposal also covers bank approval rules.
- Covered issuers would generally be expected to redeem tokens within two business days.
- Bank applications would be handled under the GENIUS Act's 120-day decision clock.
What the source confirms
The proposal exists, and it deals with two things: capital charges for stablecoins and rules for bank approvals. The source also states the redemption timeframe for covered issuers and the decision timeline for bank applications.
What is still unclear
The source does not give the size or structure of the capital charges, does not list which issuers count as covered, and does not say which banks or applications the approval rules would apply to. It also does not say when the proposal was issued, whether it is open for public comment, or what its current status is.
Why this matters
The proposal touches two practical areas for stablecoin issuers: how much capital they must hold and how quickly they must return money to token holders. For banks, it sets a timeline for decisions on applications tied to the rules.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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