Fed Draft Sets Stablecoin Reserves, Redemptions and Weekly Reports
The proposals would require daily reserve valuation, two-business-day redemptions and quarterly financial reporting for covered issuers.
The Federal Reserve’s proposed stablecoin rules would require covered issuers to maintain 1:1 reserves, process valid redemptions within two business days and provide regulators with weekly operating data.
The draft would limit eligible reserves primarily to cash, Federal Reserve balances, qualifying bank deposits, U.S. Treasurys with no more than 93 days remaining to maturity, certain repurchase transactions and specified money market funds. Issuers would have to value those assets at least daily and ensure they cover the amount owed to stablecoin holders.
Issuers also would need to publish redemption policies explaining eligibility, procedures and processing. Quarterly financial reports would require certification by the chief financial officer and directors, while anti-money-laundering and sanctions compliance would be certified annually.
A separate proposal would establish an application process for stablecoin subsidiaries of banks supervised by the Fed. Regulators would have 30 days to determine whether an application is substantially complete and generally 120 days after completion to decide it.
The proposals remain subject to public comment for 60 days after publication in the Federal Register.
