Stablecoin issuers supervised by the Federal Reserve would have to back every coin they issue with approved reserve assets, under a proposal the Federal Reserve Board released for public comment on September 24, 2026. The assets named are short-term Treasury bills and certain other high-quality, liquid assets, so the proposed list is wider than bills alone. It is a proposal, and no issuer is bound by it today.
Full backing for each coin, as the Board frames it
The Board’s announcement says the first of two proposals would require issuers to “fully back their stablecoins with certain permissible reserve assets, such as short-term Treasury bills and certain other high-quality, liquid assets.” Full backing is the core of the idea. A coin that a holder expects to redeem at face value would be matched by reserve assets set aside for that purpose, rather than by a partial cushion.
The wording matters for anyone reading the headline version of the story. The Board names Treasury bills as an example of a permissible asset, introduced with the words “such as,” and pairs them with other assets that meet a quality and liquidity test. The release as published does not list those other assets or set out the test in detail, so the precise boundary of the permitted category sits in the proposal text and not in the press summary.
Capital, risk management and safekeeping travel with the reserve rule
Reserves are only one part of the first proposal. According to the Board, the same package would set capital requirements that address credit risk and operational risk, impose risk management standards, and write rules for how reserve assets are held in safekeeping. It would also clarify which stablecoin activities are permissible for banks the Board supervises.
Put together, the pieces describe a framework in which an issuer is judged on three questions at once: what stands behind each coin, how much of the issuer’s own capital absorbs losses, and whether the assets are kept in a way that protects them. The Board’s summary presents the reserve requirement and the capital standards as a single regulatory framework for Board-supervised payment stablecoin issuers, built on the GENIUS Act, the statute the release cites as the authority for both proposals.
A second proposal covers how banks apply to issue
The companion proposal deals with process, not reserves. The Board says it would create a tailored application process for Board-supervised banks that want to issue payment stablecoins. Applicants would submit business plans and financial information, and the proposal would set out procedures for determinations and appeals.
The covered entities in the release are Board-supervised insured depository institutions, meaning banks that seek approval to issue through a subsidiary. Nothing in the announcement extends the proposed reserve rule to issuers outside that group, and the story should not be read as a rule for the whole stablecoin market. Issuers that sit under other regulators are simply not addressed in the Board’s announcement.
The comment clock runs from Federal Register publication
The Board states that the comment period for both proposals lasts 60 days after publication in the Federal Register. The release does not give a calendar date for that deadline, because the deadline depends on a publication date that the announcement does not state. Until the proposals appear in the Federal Register, the closing date cannot be counted from the press release alone.
Comment periods like this one are the stage at which the text can still change. Banks, trade groups, consumer advocates and individuals can file views on how the reserve list is drawn, how capital is measured, and how the application steps work. After the period closes, the Board would weigh the comments before deciding whether to adopt, revise or drop what it proposed.
What is and is not in force
A proposal creates no obligations. No issuer must hold any particular asset against its coins because of the September 24 announcement, and the permitted list could be narrowed, widened or reworded in a final rule. The headline phrase “would make” describes the Board’s intent as proposed and nothing more.
Two features of the Board’s own description can be taken as fixed for now: the proposal asks for full backing, and it names short-term Treasury bills first among the permissible assets, alongside other high-quality, liquid assets. The Board’s press release lists media contact details at (202) 452-2955 for questions about the announcement, and it links a separate statement from Governor Barr for readers who want an individual Board member’s view of the framework.
Frozen benefit deposits and the two-month look-back
The Bank Account & Debt Protection Kit is written for federal-benefit recipients whose bank account has been frozen or garnished by a creditor, and for people facing debt-collector contacts. Both situations leave a household unsure which money in the account is protected and what to say to the bank or the collector.
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Open the frozen-account response and the 2-month bank protection rule →
This article was produced with AI assistance and checked against the Federal Reserve Board’s published announcement.
Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
