Fed Tightens Stablecoin Oversight With New Banking-Style Rules
The Federal Reserve has unveiled a stringent regulatory framework for stablecoins, demanding full reserve backing and bank-level risk controls. The move signals a pivotal shift toward integrating cryptocurrency oversight with traditional financial safeguards.
New rules will require stablecoin issuers to register formally and maintain transparent reserve structures. This aligns with broader efforts to prevent regulatory arbitrage as digital assets gain traction in mainstream finance.
Banks and crypto firms remain locked in disputes over charter access, while regulators emphasize fairness in applying standards. The Fed simultaneously recalibrated capital requirements under Basel III to accommodate modern risk profiles.