Fed Proposes 2% Capital Charge on First $20B in Stablecoins, Two-Day Redemptions

The Federal Reserve on Thursday, September 24, 2026, published two proposed rulemakings to implement the GENIUS Act, the law that already requires payment stablecoin issuers to back tokens one-to-one with cash, bank deposits or short-term Treasurys. Four outlets, CoinDesk, Cointelegraph, Decrypt and The Block, independently reported the same core mechanics: tiered capital charges, a two-business-day redemption deadline and monthly audited reserve disclosures. The proposals are open for public comment for 60 days after Federal Register publication.

Sourcing note: the capital-charge percentages and redemption timeline appear in at least two independent reports (Cointelegraph, Decrypt) and are treated here as confirmed. A comment from Fed Governor Michael Barr on bank anti-money-laundering oversight comes from a single outlet, The Block, and is flagged as such below.

The Capital Math: Tiered Charges by Outstanding Supply

Under the Fed’s plan, a supervised issuer would face an operational-risk capital charge equal to 2% of its first $20 billion in stablecoins outstanding. The rate drops to 1.5% on the next $30 billion, then to 1% on any amount above $50 billion. Additional capital would layer on top for credit and operational risk specific to each issuer.

The scaling structure means a larger issuer pays a smaller marginal rate on incremental supply, a design that mirrors tiered capital rules used elsewhere in banking. It also means the first $20 billion carries the heaviest relative charge, which matters for smaller issuers scaling toward that threshold.

Redemptions in Two Days, Reserves Checked Monthly

Issuers would generally have to process redemptions within two business days. That is a hard number, not a target. If reserves fall below the required one-to-one backing, the issuer must notify the Fed and either restore the shortfall under a remediation plan or liquidate reserves to redeem outstanding tokens.

Monthly reports on outstanding stablecoins and reserve composition would need examination by a registered public accounting firm, with sign-off from the issuer’s CEO and CFO. This closes a gap that critics of stablecoin transparency have raised for years: self-reported reserve figures without third-party verification.

A Bank Pathway, and One Outlet’s AML Detail

A separate proposal creates an application process for Fed-supervised banks that want to issue payment stablecoins through subsidiaries. Applicants would submit a business plan and financial information as part of that process.

The Block reported that Fed Governor Michael Barr backed the overall proposal but pushed for more work on bank anti-money-laundering oversight. That detail has not been independently matched in the other three reports reviewed here, so it stands as a single-sourced data point rather than a confirmed fact.

The comment window closes 60 days after the rules land in the Federal Register. Until then, the tiered capital percentages, the two-day redemption clock and the audited monthly disclosure requirement are the confirmed shape of what stablecoin issuers under Fed supervision will need to build toward.

Sources

• coindesk.com
• cointelegraph.com
• decrypt.co
• theblock.co