# Fed proposes full stablecoin backing as Barr presses for redemption safeguards Author: KriptoMeta Editorial Team Language: English Published: 2026-09-27T23:20:17+03:00 Updated: 2026-09-27T23:20:17+03:00 ![Michael Barr, the Federal Reserve building and a dollar-marked stablecoin in an editorial composition.](https://kriptometa.com/uploads/fed-den-stablecoinlere-tam-rezerv-teklifi-barr-dan-itfa-uyarisi-6492_article.webp) ## Key takeaways - Two proposals released on September 24 cover payment stablecoin issuers and banks supervised by the Federal Reserve. - Permitted assets would fully back outstanding stablecoins, alongside separate capital and risk-management requirements. - Barr wants clear rights to reliable redemption at par. Comments are due 60 days after Federal Register publication. The Federal Reserve has opened reserve and capital proposals for stablecoin issuers it supervises. Governor Michael Barr wants the final framework to make access to redemption clear, including when markets are under stress. The Federal Reserve has proposed requiring payment stablecoin issuers it supervises to fully back their outstanding tokens with permitted reserve assets. Released for comment on September 24, the framework also sets out capital and risk-management requirements. Governor Michael Barr supports the proposals but wants the final rules to make redemption rights clear. The [two proposals under the GENIUS Act](https://www.federalreserve.gov/newsevents/pressreleases/bcreg20260924a.htm) address how issuers would operate and how supervised banks could apply to enter the business. They are not final rules, and their scope is Fed-supervised institutions rather than every [stablecoin](https://kriptometa.com/en/glossary/stablecoin) worldwide. ## Capital rules would sit alongside full reserve backing The first proposal identifies short-term US Treasury bills and certain other high-quality, liquid assets as permitted reserves. Outstanding stablecoins would have to be fully backed. Fed-supervised firms that safeguard those reserve assets would also face rules of their own. Capital addresses a separate concern. The Fed proposes standardized requirements for certain credit and operational risks arising from payment stablecoin activities. Holding reserves against tokens and maintaining capital against the issuer’s business risks are therefore distinct obligations. The proposal would also clarify which stablecoin-related activities supervised banks may undertake. ## Banks would face a separate application process The second proposal sets out an application route for Fed-supervised banks seeking to issue payment stablecoins. Required documents would include a business plan and financial information. The process would cover appeals, hearings and final determinations as well as the initial application. **Open for comment does not mean in force.** The Fed says the comment period will close 60 days after publication in the Federal Register. Counting from the September 24 announcement would not establish a verified closing date. The Fed’s file concerns issuers’ reserves and bank approvals. [The CFTC’s clarification on investing customer funds in tokenized assets](https://kriptometa.com/en/cftc-customer-funds-tokenized-investments) addresses a different use case. The agencies’ digital-asset measures should not be read as a single blanket permission. ## Barr puts access to redemption at the center In his [statement released the same day](https://www.federalreserve.gov/newsevents/pressreleases/barr-statement-20260924.htm), Barr welcomed reserve limitations and transparent capital requirements. He also called for feedback on whether interest-rate and foreign-currency risks are adequately addressed. > “Stablecoins will only be stable if they can be reliably and promptly redeemed at par in a range of conditions.” > > Michael S. Barr, Federal Reserve Governor — September 24 His concern extends beyond normal trading conditions. Barr notes that market stress can put pressure even on otherwise liquid government debt, while an issuer or its related entities may face strain of their own. [Assessing reserve quality separately from direct redemption rights](https://kriptometa.com/en/stablecoin-risks-checklist) brings the question back to how a holder can access the reference value, rather than the target price alone. Barr also raised concerns about the proposed “significant or systemic” threshold for action on anti-money-laundering deficiencies and its effect on supervision. The final framework still has to address how redemption and oversight would work under stress, alongside the amount of reserves held.