The Fed moves from crypto law to stablecoin rulebook

The Federal Reserve has proposed the rules that would govern payment stablecoin issuers under its supervision, turning a broad U.S. law into practical requirements for banks and other regulated firms. Stablecoins are digital tokens meant to hold a fixed value, usually one dollar, so the central question is whether holders can reliably redeem them. The Fed’s plan would require issuers to fully back outstanding tokens with approved liquid assets, such as short-term Treasury bills, while also meeting capital and risk-management standards. A separate proposal lays out how Fed-supervised banks could seek permission to issue stablecoins, signaling that the industry’s next phase may look less like an unregulated crypto market and more like a tightly supervised payments business.