Federal Reserve Proposes Two GENIUS Act Rulemaking Packages For US Stablecoin Issuers In 2026

The Federal Reserve proposed two GENIUS Act rulemaking packages on September 24, 2026, establishing reserve, capital, and redemption requirements for US payment stablecoin issuers. The proposals, announced Thursday, open a public comment window on rules covering the assets that must back payment stablecoins, the capital issuers must hold, risk management standards, and the approval process for banks seeking to enter the market, according to TMGM and BlockWest reporting on the Fed's release.

The two packages represent the central bank's first comprehensive implementation of the GENIUS Act, the stablecoin law signed July 18, 2025, that created the Permitted Payment Stablecoin Issuer, or PPSI, framework. The Fed's action follows parallel rulemaking from the Office of the Comptroller of the Currency and the Treasury, and it arrives after federal regulators missed the GENIUS Act's one-year deadline for final rules, with the OCC now targeting November 2026 for its own package.

• 2 new rulemaking packages proposed by the Federal Reserve, announced September 24, 2026, per TMGM
• 2% capital requirement on the first $20 billion of stablecoin issuance, per The Company Chronicle
• 93 days or less maximum maturity for Treasury reserve assets, per The Company Chronicle
• 2-day redemption window proposed for stablecoin issuers, per LCX
• $300 billion in total stablecoin issuer assets as of 2025, per Treasury OFAC data

Federal Reserve Unveils Two GENIUS Act Rulemaking Packages For Stablecoin Issuers

The Federal Reserve's September 24, 2026 proposal splits its GENIUS Act implementation into two distinct rulemaking packages, each addressing a separate pillar of the stablecoin regulatory regime Congress created in July 2025. The first package covers the reserve assets that must back payment stablecoins and the capital levels issuers must maintain. The second package establishes the approval process for banks and other institutions seeking to issue stablecoins, including customer identification requirements that the Fed proposed separately in June 2026.

The announcement marks the Fed's most detailed public position on stablecoin regulation since the GENIUS Act became law. The statute requires issuers to register as Permitted Payment Stablecoin Issuers and maintain reserves backing each stablecoin on a one-to-one basis using US currency or similarly liquid assets. The Fed's proposals translate those statutory requirements into specific regulatory standards, including a two-day redemption window that would require issuers to return customer funds within 48 hours of a redemption request, according to LCX.

The Fed's action sits within a broader regulatory sprint across federal agencies. The OCC proposed its own implementing regulations in February 2026, adding a new Part 15 to its rules and establishing a supervisory framework for PPSIs. The Treasury followed with proposed GENIUS Act regulations on payment stablecoin issuance, offer, and sale, formally published August 18, 2026. The Federal Banking Agencies, including the Fed, proposed customer identification program requirements for PPSIs on June 12, 2026, with a comment window running through June 24, 2026, per Goodwin Law.

TMGM Reports The Fed's Thursday Announcement

TMGM reported that the Federal Reserve sought public input on the two stablecoin proposals, which would establish requirements covering stablecoin reserves, capital, risk management, and the approval process. The announcement came on a Thursday, September 24, 2026, and immediately triggered analysis across crypto market outlets including LCX and LBank, which framed the rules as the Fed's first concrete step toward implementing the GENIUS Act's prudential framework.

BlockWest Confirms The Comment Window

BlockWest confirmed that the Federal Reserve opened public comment on the two GENIUS Act rules covering stablecoin reserves, capital, and bank applications. The outlet's coverage emphasized that the Fed's package addresses the same statutory requirements the OCC and Treasury have been implementing in parallel, creating a multi-agency regulatory architecture for stablecoin issuers that did not exist before the GENIUS Act's enactment.

Full Reserve And Capital Requirements: What The Fed's Stablecoin Rules Mandate

The Fed's reserve asset proposal specifies that stablecoin issuers must hold reserves in US Treasuries with maturities of 93 days or less, according to The Company Chronicle. That short-duration requirement is designed to ensure issuers can meet redemption requests without selling assets at a loss during market stress. The proposal also sets a capital requirement of 2% on the first $20 billion of stablecoin issuance, a tiered structure that would apply lower capital charges to smaller issuers while scaling requirements as issuance grows.

The GENIUS Act itself requires permitted issuers to maintain reserves backing stablecoins on a one-to-one basis using US currency or other similarly liquid assets. Permitted reserve assets include US coins and currency, demand deposits at insured depository institutions, short-term Treasury bills, and similar high-quality liquid assets, according to Daeryun Law's analysis of the statute. The Fed's proposal narrows the Treasury component to 93 days or less, a stricter standard than the statutory language alone would require.

The OCC's parallel proposal, published in February 2026, establishes a minimum capital requirement framework based on the lifecycle of the permitted payment stablecoin issuer. New issuers would need to maintain capital of at least $5 million during their de novo period, after which capital levels would be determined based on the issuer's business model and risk profile, according to The Conference Board and Legal500. The Fed's 2% capital requirement on the first $20 billion represents a different approach, applying a standardized ratio rather than the OCC's lifecycle-based framework.

The Two-Day Redemption Window

LCX reported that the Fed's proposal would set a two-day redemption window, requiring stablecoin issuers to process redemption requests within 48 hours. This requirement addresses a core concern in stablecoin regulation: that issuers must be able to convert reserves to cash quickly enough to honor redemption demands during periods of market stress. The two-day window is shorter than the redemption timelines some issuers currently operate under, potentially requiring operational changes for existing stablecoin programs.

Reserve Asset Composition And Rehypothecation Limits

The GENIUS Act requires stablecoins to be backed one-to-one with high-quality, short-duration reserve assets that may not be rehypothecated, according to the Conference of State Bank Supervisors' one-year implementation review. Issuers may use reserve assets only for certain activities, including redeeming stablecoins and offering them as collateral in repos and reverse repos, per Young Inc.'s analysis. The Fed's proposal adds the 93-day Treasury maturity limit, which would exclude longer-dated government debt from qualifying reserve assets.

Capital Requirements Across Agencies

The Fed's 2% capital requirement on the first $20 billion of issuance contrasts with the OCC's $5 million minimum for new issuers. The GENIUS Act requires that capital requirements be tailored to the business model and risk profile of permitted payment stablecoin issuers, according to Eversheds Sutherland. The Fed's standardized ratio approach and the OCC's lifecycle approach both attempt to satisfy that statutory requirement, but they create potential compliance complexity for issuers that must navigate both frameworks.

Industry And Lawmaker Reactions To The Fed's GENIUS Act Stablecoin Proposals

Industry reaction to the Fed's proposals has centered on the comment period and the pace of implementation. Major US banks filed formal requests to extend the GENIUS Act comment period, aiming to slow stablecoin framework implementation timelines, according to BirdAI research. The American Bankers Association offered recommendations to improve a proposed rule creating a process to evaluate rules for state-qualified stablecoin issuers, signaling that the banking industry wants changes to the approval process before final rules take effect.

The ABA's June 2026 comments focused on the proposed approval process for state stablecoin regulation, according to the ABA Banking Journal. The trade group's intervention suggests that banks are concerned about how the Fed's rules will interact with state-level stablecoin frameworks that already exist in states like New York and Texas. The GENIUS Act creates a federal framework but preserves a role for state regulation, and the ABA's comments indicate that banks want clarity on how the two layers will coordinate.

The Treasury's August 18, 2026 proposed rulemaking explicitly provides for its extraterritorial effect over the offer or sale of a payment stablecoin to any person located in the United States, according to Lexology. That extraterritorial reach has drawn attention from international stablecoin issuers and foreign banks that may need to comply with US rules even when operating primarily outside the country. The Fed's proposals do not address extraterritoriality directly, but the parallel Treasury rule creates compliance obligations that extend beyond US borders.

Banks Request Comment Period Extension

BirdAI reported that major US banks filed formal requests to extend the GENIUS Act comment period, aiming to slow stablecoin framework implementation timelines. The requests came after the OCC published its proposed rules in February 2026, with comments due May 1, 2026. Debevoise & Plimpton noted that some industry groups requested an extension of the comment period due to the length of the OCC notice of proposed rulemaking, a request that appears to have influenced the Fed's decision to open its own comment window in September 2026.

The Interest Prohibition And Its Limits

The GENIUS Act prohibits stablecoin issuers from paying interest or yield directly to stablecoin holders, but it does not expressly bar an issuer's affiliate from offering yield on stablecoin deposits, according to Legal500. This distinction has become a focal point for industry reaction, as stablecoin issuers explore ways to share revenue with users without violating the statutory prohibition. The Fed's proposals do not address the interest prohibition directly, leaving that question to the OCC and Treasury rulemakings.

Next Steps: Comment Period And Implementation Timeline For The Fed's Stablecoin Rules

The Fed's September 24, 2026 announcement opens a public comment period, though the specific deadline has not been disclosed in the available reporting. The OCC's parallel rulemaking set a May 1, 2026 comment deadline, and the Fed's June 2026 customer identification proposal ran through June 24, 2026. The Fed's stablecoin reserve and capital proposals will likely follow a similar 60-to-90-day comment window, with final rules expected in 2027.

Federal regulators missed the GENIUS Act's one-year deadline for issuing final stablecoin rules, with the OCC now targeting November 2026 for its final package, according to an Instagram post citing regulatory sources. The Fed has not announced a target date for finalizing its two proposals, but the parallel OCC timeline suggests that final rules across agencies could arrive in late 2026 or early 2027. The GENIUS Act's statutory deadline passed in July 2026, one year after the law's enactment.

The implementation timeline matters for stablecoin issuers that must build compliance systems before the rules take effect. The Fed's two-day redemption window, 93-day Treasury maturity limit, and 2% capital requirement on the first $20 billion of issuance would require operational changes for existing issuers. New issuers would need to meet the OCC's $5 million minimum capital requirement during their de novo period, then transition to the Fed's standardized capital framework as they scale.

The OCC's November 2026 Target

The OCC is targeting November 2026 for finalizing its stablecoin rules, according to reporting cited on Instagram. That timeline would put the OCC's final rules roughly nine months after its February 2026 proposal and more than a year after the GENIUS Act's July 2025 enactment. The Fed has not announced a comparable target date, but the two agencies have coordinated their rulemaking efforts throughout the implementation process.

What Issuers Should Watch

The base case is that the Fed finalizes its two proposals in early 2027, after reviewing comments from banks, stablecoin issuers, and trade groups. The bull case for stablecoin adoption is that clear federal rules attract institutional issuers that have been waiting for regulatory certainty, expanding the $300 billion stablecoin market that existed as of 2025. The bear case is that the 2% capital requirement and 93-day Treasury limit raise compliance costs enough to slow issuance growth, particularly for smaller issuers that cannot absorb the fixed costs of regulatory compliance.

Three watch items will signal the direction of the rulemaking. First, the Fed's comment deadline, which will reveal how much time the central bank is giving industry to respond. Second, the OCC's November 2026 final rule, which will set the template for how the Fed's parallel proposals are finalized. Third, any revision to the 2% capital requirement or the 93-day Treasury maturity limit, which would signal whether the Fed is willing to adjust its standards in response to industry comments.

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