What exactly did the Fed propose?
The US Federal Reserve (Fed) published a rule proposal on September 24 designed to put last year's GENIUS Act into practice, the American framework for payment stablecoins. According to The Defiant, the proposal would require payment stablecoin issuers under the Fed's supervision to hold full reserve backing while also maintaining capital against operational and certain credit risks. It also includes an approval process for bank subsidiaries that would want to issue stablecoins.
A payment stablecoin is a token pegged to the value of a single currency (typically the US dollar), designed primarily for payments and settlement rather than speculation. The GENIUS Act created federal guardrails for this category last year; the current Fed proposal is one of the implementing regulations meant to get the law moving.
According to CoinDesk, the proposals also touch on rules for yield programs on stablecoins, that is, the conditions under which issuers may offer holders some kind of return. We do not know the exact parameters of these rules in detail from the available sources.
Who do the rules apply to?
The Defiant notes that the main requirements would fall on approved subsidiaries of entities under the Fed's supervision. In other words, this targets issuers tied to a banking structure, not necessarily every stablecoin issuer in the United States. The dividing lines between who falls under the Fed's supervision and who falls under other regulators are exactly what the implementing regulations are still clarifying.
How does this fit into the broader US plan?
Decrypt describes the wider political context: according to its reporting, Washington is weighing how to use dollar-pegged stablecoins to strengthen the dollar's position in the world and to support demand for US government bonds (Treasuries). The mechanics are logical. Issuers back tokens with, among other things, government bonds, so a rise in stablecoin volume means a rise in demand for that debt.
Mind the line between facts and intent. That regulation is being created is demonstrable. That it will turn into a functioning "tool of dollar dominance" is so far a political ambition described in the media, not a finished result. Charliedesk treats this as uncertain.
Why is pressure from the field growing?
Alongside regulation, real-world usage is growing. Cointelegraph reported that America's SoFi is moving its entire card program to blockchain-based settlement using its own stablecoin SoFiUSD, in partnership with Mastercard, with an expected annual volume of more than 25 billion dollars. This shows that stablecoins are being tested as an alternative settlement rail for payments, not just as tradable tokens.
This is one specific corporate move, not a blanket trend. But together with the Fed's regulatory push, it illustrates why the question of stablecoin rules is becoming urgent right now.
What is still a process, and not a done deal?
Key point: this is a proposal, not rules in force. Fed proposals usually go through a period of public comment and may change before their final form. From the available sources we do not know the specific capital rates, the exact deadlines, or the final scope of the rules for yield programs.
What to watch out for with this type of news
- Proposal versus final rule. The phrasing "the Fed proposed" does not mean "in effect starting tomorrow." Watch whether and in what form the rules pass the comment process.
- Who exactly falls under supervision. The scope (only bank subsidiaries, or a broader circle) determines the real impact.
- Political intent versus measurable effect. The ambition to strengthen the dollar through stablecoins is a description of a goal, not proof of a result. Any effect on demand for Treasuries will eventually show up in the data.