The US Federal Reserve issued two proposed rulemakings on Thursday, September 25, 2026, to implement the GENIUS Act - stablecoin legislation signed by Donald Trump in July 2025. One of the most pivotal provisions is a redemption deadline: issuers must process token redemptions into fiat currency within a maximum of two business days.
If a company’s reserve funds drop below the one-to-one full reserve ratio, alarm bells will ring. Issuers must immediately notify the Fed and face two stark options: draft an emergency recovery plan or liquidate their stablecoin project entirely.
To ensure funds are always available for withdrawal, the first proposal restricts collateral strictly to the safest assets. Token issuers may only use short-term government debt, bank deposits, and other high-quality liquid assets to back the peg.
Audit-Backed Monthly Reports
Transparency requirements are being raised to the same level as conventional public companies. Each month, issuers must detail the circulating supply of their stablecoins along with the value and composition of their reserve baskets. These reports must be audited by a registered public accounting firm and certified with direct signatures from top corporate executives - the CEO and CFO.
In line with the Office of the Comptroller of the Currency (OCC), the central bank is maintaining a strict stance on yield. Interest payments to stablecoin holders are completely prohibited. However, regulators left a narrow exception: crypto platforms may distribute incentives structured similarly to traditional credit card points programs.
Red Carpet for Bank Subsidiaries
While the first rule focuses on existing players, the second proposal paves the way for conventional financial institutions. Banks supervised by the Fed now have an official application pathway to issue stablecoins, provided operations are segregated into dedicated payment subsidiaries.
The technical filing resolves a prolonged impasse over the implementation of the GENIUS Act, which was slated for completion in July 2026. Although the statutory deadline has passed, the move builds on earlier proposals regarding capital thresholds and redemption standards. Meanwhile, the OCC is also expediting its own rules to finalize them before November, ahead of an upcoming January deadline.
Public Comment Phase
The proposed rules have not yet reached the finish line. Both proposals will undergo a 60-day public comment period following publication in the Federal Register. Fed Governor Michael Barr expressed full support for the draft proposals, noting that regulators’ work is not complete until these instruments can be genuinely relied upon for everyday payments.
The new rules are now on the table, awaiting feedback from an industry that has long operated under minimal oversight. Source: CoinDesk.
Previously: US Senate Fails to Pass CLARITY Act - Fed Immediately Issues Full-Reserve Rules for Stablecoins
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
