U.S. Federal Reserve proposes new rules for stablecoins

The U.S. Federal Reserve on Thursday proposed new rules for issuers of dollar-backed cryptocurrency tokens known as stablecoins.

Under the proposal, the Federal Reserve would require issuers of payment stablecoins under its supervision to fully back their tokens with designated reserve assets, such as short-term Treasury bills.

The proposal would also impose capital requirements on stablecoin issuers to address certain credit and operational risks.

If approved, the new rules would introduce guidance for Fed-supervised banks that provide custody services on behalf of stablecoin issuers.

The proposal would also spell out the stablecoin-related activities Fed-supervised banks may engage in and create a tailored application process for banks that want to issue their own stablecoins.

The Federal Reserve will accept comments on the proposed new rules for 60 days after they are published in the Federal Register.