Federal Reserve proposes 2-day stablecoin redemption rule under GENIUS Act
CIE News ·
The Federal Reserve published proposed GENIUS Act rules mandating a two-day redemption timeframe for supervised stablecoin issuers, initiating a 60-day public comment window.
The Federal Reserve published a proposed regulatory framework under the GENIUS Act in the Federal Register on September 29, 2026, establishing a general two-business-day redemption requirement for Board-supervised payment stablecoin issuers. The action opens a 60-day public comment period on proposals that mandate stablecoins be fully backed by permissible reserve assets like short-term Treasury bills, alongside standardized capital and risk management requirements.
According to CryptoSlate, the rules could impact approximately $76 billion in reserve-backed stablecoins held on centralized exchanges, based on research from the Andersen Institute for Finance and Economics. That total includes $61.5 billion in Tether (USDT) and $10.1 billion in USD Coin (USDC). However, exchange customers must first navigate venue withdrawal terms, which operate separately from an issuer's direct redemption obligations under the Federal Reserve framework.