Fed Proposes Reserve and Capital Rules for Stablecoin Issuers
A Federal Reserve proposal would require supervised payment-stablecoin issuers to maintain full reserves and capital buffers, while setting approval rules for bank subsidiaries.
The Federal Reserve proposed a framework on Sept. 24 that would set reserve and capital requirements for payment-stablecoin issuers under its supervision, The Defiant reported.
Under the proposal, covered issuers would need to fully back their stablecoins with reserves. They would also have to hold capital to cover operational risks and certain credit risks.
The framework would establish an approval process for bank subsidiaries seeking to issue payment stablecoins. Approved subsidiaries would be among the entities subject to the proposed requirements, which are not yet final.
Source: The Defiant
