The U.S. Federal Reserve has proposed two wide-ranging rules to implement the bulk of its requirements under the GENIUS Act, joining other federal agencies still working to complete stablecoin regulations past a July 2026 legal deadline.
The proposals, published September 24, 2026, cover capital and reserve standards for stablecoin issuers and procedures for regulated banks to issue stablecoins. Both rules will have 60-day public comment periods. The move marks a major step in implementing the Guiding and Establishing National Innovation for U.S. Stablecoins Act, which Congress passed last year and tasked banking regulators and Treasury with establishing stablecoin rules by July 2026.
Fed Governor Michael Barr said redemption reliability during market stress was central to the Fed’s approach. “Stablecoins will only be stable if they can be reliably and promptly redeemed at par in a range of conditions. This includes during market stress, when pressure can be put on the value of even otherwise liquid government debt, and during episodes of strain on the individual issuer or its related entities,” Barr said.
Stablecoin Rewards Restrictions
The Fed’s first proposal restricts how stablecoin issuers can offer rewards to users. The Federal Reserve stated that “under the proposal, certain types of arrangements involving third parties would be presumed to be prohibited payments of interest or yield.” This approach mirrors restrictions proposed by the Office of the Comptroller of the Currency.
The GENIUS Act now serves as the primary law governing stablecoin rewards after the Digital Asset Market Clarity Act failed to advance. The Fed did not specify which reward arrangements would be permitted under a narrower approach.
Regulatory Timeline and Agency Coordination
The Federal Reserve’s proposals follow earlier regulatory steps by other agencies. The Federal Deposit Insurance Corp. began its implementation process in December 2025. In June 2026, multiple agencies proposed user identification requirements for stablecoin transactions. The Treasury Department proposed its own GENIUS Act implementation last month.
All agencies have now passed the July 2026 legal deadline to complete their regulations. The Fed’s two proposals represent the agency’s primary contribution to implementing the stablecoin framework established by Congress.
