Federal Reserve Starts Building the U.S. Stablecoin Rulebook
The U.S. stablecoin market is entering a new regulatory phase.
On September 24, 2026, the Federal Reserve proposed two new regulatory frameworks for payment stablecoin issuers under the GENIUS Act.
The proposals could become an important part of the rulebook for stablecoins in the United States.
The Federal Reserve wants to establish clear requirements for reserves, capital, risk management, custody, applications, and bank involvement in stablecoin activities.
So, what exactly is the Fed proposing?
And what could the new rules mean for stablecoin issuers, banks, crypto companies, and investors?
The Federal Reserve Begins Building the Stablecoin Rulebook
The Federal Reserve’s latest proposals are designed to implement its responsibilities under the GENIUS Act.
The law created a federal framework for payment stablecoins.
Now, regulators are working on the detailed rules needed to put that framework into practice.
The Federal Reserve’s proposals focus on institutions that fall under its supervision.
That includes certain banks and other permitted payment stablecoin issuers within the Fed’s regulatory jurisdiction.
Importantly, these are proposed rules, not final rules.
The Federal Reserve is requesting public comments before moving toward a final framework.
What Is the GENIUS Act?
The GENIUS Act is the foundation of the new U.S. payment stablecoin framework.
The legislation was signed into law in July 2025.
It establishes rules for payment stablecoin issuers and creates requirements covering areas such as reserves, redemption, supervision, and permitted issuers.
However, the law also leaves important implementation details to federal and state regulators.
That is where the Federal Reserve now comes in.
The Fed’s latest proposals are part of the broader process of turning the GENIUS Act into an operational regulatory system.
What Is the Federal Reserve Proposing?
The Federal Reserve released two related proposals.
The first proposal would establish regulations for Board-supervised payment stablecoin issuers.
The second would create an application process for certain insured state member banks seeking approval to establish a subsidiary that issues payment stablecoins.
Together, the proposals begin to define how banks and stablecoin issuers could operate under the new framework.
1. Stablecoins Would Need Permitted Reserve Assets
One of the most important parts of the proposal involves reserves.
The Federal Reserve proposes that supervised payment stablecoin issuers fully back their stablecoins with permitted reserve assets.
Those assets could include short-term U.S. Treasury bills and other high-quality, liquid assets.
The goal is straightforward.
If a stablecoin is designed to maintain a stable value, holders need confidence that they can redeem it.
Therefore, the assets backing the stablecoin become a central part of the regulatory framework.
This could also make reserve transparency and asset quality increasingly important for stablecoin issuers.
2. Capital Requirements Could Become Part of the Framework
The Federal Reserve also proposes standardized capital requirements.
These requirements are designed to address certain credit and operational risks associated with payment stablecoin activities.
This is important because stablecoin issuers are becoming more closely connected to the traditional financial system.
Capital requirements could provide an additional layer of protection if an issuer faces operational or financial stress.
In other words, reserves may support redemption, while capital requirements can provide another layer of resilience.
3. Risk Management Would Become More Formal
The proposed framework would also establish risk management standards.
That could affect how regulated institutions manage their stablecoin operations.
For banks, this could mean stronger internal controls, governance, risk monitoring, and operational procedures.
For the broader stablecoin market, it could mean that issuing a regulated payment stablecoin becomes more similar to operating a highly supervised financial activity.
4. Custody of Stablecoin Reserves Matters
The Federal Reserve is also proposing rules for firms that safeguard the assets backing payment stablecoins.
This is an important part of the system.
A stablecoin can only be as reliable as the infrastructure supporting its reserves.
Therefore, custody arrangements need to be clearly defined.
The proposal would establish rules around firms that hold or safeguard these reserve assets for supervised institutions.
5. Banks Could Get a Clearer Path Into Stablecoins
Another major development involves banks.
The Federal Reserve wants to clarify which stablecoin and related activities are permissible for Board-supervised banks.
This could create a clearer path for traditional financial institutions to participate in the stablecoin market.
Banks could potentially become more involved in:
- Stablecoin issuance
- Stablecoin-related payment services
- Reserve management
- Custody
- Supporting stablecoin infrastructure
This could accelerate the connection between traditional finance and digital assets.
A New Application Process for Banks
The second Federal Reserve proposal focuses specifically on applications.
Under the proposed framework, an insured state member bank seeking approval for a subsidiary to issue payment stablecoins would need to follow a dedicated application process.
Applicants would need to provide information such as:
- A business plan
- Financial information
- Details about the proposed stablecoin activities
- Other information required by the Federal Reserve
The proposal would also establish procedures for appeals, hearings, and final determinations.
This could make the process more predictable for banks considering stablecoin issuance.
Why This Matters for the U.S. Crypto Market
The significance goes beyond regulation.
Stablecoins are increasingly becoming part of the infrastructure connecting crypto markets and traditional finance.
They can be used for:
- Digital payments
- Trading
- Settlement
- Transfers
- DeFi applications
- Cross-border transactions
- Treasury management
As stablecoin adoption grows, regulators want to ensure that the assets remain reliable.
The Federal Reserve’s proposals are therefore an important step toward creating a standardized framework.
Stablecoins Could Become More Like Financial Infrastructure
The direction of regulation suggests a broader shift.
Stablecoins are no longer being treated only as crypto products.
Instead, regulators are increasingly looking at them as payment instruments and financial infrastructure.
That distinction matters.
If stablecoins become widely used for payments and settlement, problems at a major issuer could potentially affect other parts of the financial system.
Therefore, regulators are focusing on reserves, redemption, liquidity, capital, risk management, and supervision.
The Fed Is Not Starting From Zero
The September proposal is part of a broader regulatory process.
Earlier in 2026, the Federal Reserve also joined other agencies in proposing customer identification requirements for certain permitted payment stablecoin issuers.
That proposal would introduce customer identification requirements comparable to those used by banks and credit unions.
This shows that the U.S. stablecoin framework is being built across multiple regulatory areas.
The rules are not only about reserves.
They also involve compliance, identity verification, supervision, risk management, and financial stability.
The OCC Is Building Its Own GENIUS Act Framework
The Federal Reserve is not the only U.S. regulator working on the new stablecoin framework.
The Office of the Comptroller of the Currency, or OCC, issued its own proposed rules earlier in 2026.
The OCC proposal covers areas such as:
- Reserve assets
- Redemption
- Risk management
- Audits
- Reporting
- Supervision
- Custody
- Applications
- Capital requirements
- Operational backstops
This means the United States is building a broader regulatory system involving multiple financial regulators.
For stablecoin companies, understanding which regulator has jurisdiction could become increasingly important.
What Happens Next?
The Federal Reserve’s latest proposals are not yet final.
The Board is requesting public comments.
The comment period is scheduled to close 60 days after publication in the Federal Register.
For the separate application procedures proposal, the Federal Reserve lists November 30, 2026, as the comment deadline.
After reviewing comments, the Federal Reserve can make changes before adopting final rules.
Therefore, the current proposal should not be treated as the final version of the U.S. stablecoin rulebook.
What Could Change for Stablecoin Issuers?
If the proposed framework becomes final, stablecoin issuers under the Federal Reserve’s jurisdiction could face more formal requirements.
That could include stronger expectations around:
- Reserve assets
- Capital
- Risk management
- Custody
- Governance
- Applications
- Supervision
- Compliance
For smaller companies, these requirements could increase the cost of entering the regulated stablecoin market.
However, clearer rules could also reduce regulatory uncertainty.
That could encourage more institutional participation.
What Could This Mean for Crypto Investors?
For investors, the biggest change may be increased transparency and regulatory oversight.
A regulated stablecoin could have clearer rules around its reserves, redemption process, and issuer responsibilities.
However, regulation does not eliminate risk.
Investors still need to consider the issuer, reserve structure, redemption terms, custody arrangements, and the specific legal status of the stablecoin.
A stablecoin being regulated does not automatically make it risk-free.
Could This Accelerate Institutional Adoption?
Potentially, yes.
Banks and large financial institutions generally need clear regulatory frameworks before committing significant resources to new financial products.
A clearer U.S. stablecoin rulebook could reduce some of that uncertainty.
As a result, more institutions could explore stablecoin-based payments and settlement systems.
This could create new opportunities for:
- Banks
- Payment companies
- Fintech firms
- Crypto exchanges
- Custodians
- Blockchain networks
- Stablecoin issuers
The result could be a deeper connection between traditional finance and blockchain infrastructure.
What About DeFi?
The impact on DeFi could also be significant.
Stablecoins are among the most important assets in decentralized finance.
They are widely used for trading, lending, liquidity provision, and settlement.
If regulated stablecoins become more widely available, they could become an important bridge between traditional financial institutions and DeFi applications.
However, the exact impact will depend on how the final rules treat different issuers, activities, and market participants.
The Bigger Picture
The Federal Reserve’s latest proposals represent more than another regulatory update.
They show that stablecoins are moving closer to the center of the U.S. financial system.
The regulatory conversation is shifting from:
“Should stablecoins be regulated?”
to:
“How should stablecoins be regulated?”
That is a major change.
The United States now has a legal foundation through the GENIUS Act.
Federal agencies are working on the detailed rules.
And banks are increasingly exploring digital assets as part of their future business models.
FAQ
What is the Federal Reserve’s new stablecoin rulebook?
The Federal Reserve’s proposed framework is designed to implement its responsibilities under the GENIUS Act for Board-supervised payment stablecoin issuers and related entities.
Are the Federal Reserve’s stablecoin rules final?
No.
The September 2026 proposals are subject to public comment. The Federal Reserve may change the rules before adopting a final framework.
What reserves could stablecoin issuers hold?
The proposal would require supervised payment stablecoin issuers to fully back their stablecoins with permitted reserve assets, including short-term Treasury bills and certain other high-quality liquid assets.
Will banks be allowed to issue stablecoins?
The proposed framework would establish a process through which certain insured state member banks could seek approval for a subsidiary to issue payment stablecoins.
Why are stablecoin reserves important?
Reserves help support the issuer’s ability to redeem stablecoins. Strong reserve requirements can therefore improve confidence in the stability and liquidity of the payment stablecoin.
What is the GENIUS Act?
The GENIUS Act is the U.S. federal legislation that established a regulatory framework for payment stablecoins. It was signed into law in July 2025.
Will the new rules affect DeFi?
They could.
Stablecoins are widely used across DeFi. However, the precise impact will depend on the final regulations and how different stablecoin issuers and activities are treated.
The Bottom Line
The Federal Reserve has started turning the GENIUS Act into a detailed regulatory framework.
Its September 2026 proposals address some of the most important parts of the stablecoin ecosystem.
Reserves.
Capital.
Risk management.
Custody.
Bank participation.
Applications.
Supervision.
For the U.S. crypto industry, this could be a major turning point.
Clearer rules could make it easier for banks and financial institutions to participate in stablecoins.
At the same time, compliance costs and regulatory requirements could become much higher.
The final rulebook is not finished yet.
However, the direction is becoming clear.
Stablecoins are moving from the edges of crypto toward the core of the U.S. financial system.
Why OneKey Fits the Self-Custody Vault Approach
OneKey is designed around self-custody and hardware-based protection.
Its ecosystem includes open-source components and hardware wallets with Secure Element protection. The available models are designed for different user needs.
OneKey Classic 1S
The Classic 1S is a compact hardware wallet designed for users who want dedicated cold-storage protection without carrying a large device.
It can fit investors who primarily want to separate long-term holdings from exchange accounts.
For a San Jose investor, this setup can create a clear boundary between trading activity and long-term storage.
OneKey Pro
The OneKey Pro targets users who want a more advanced hardware wallet experience.
For active Web3 users, a larger interface can make transaction review more practical when interacting with decentralized applications.
The device also uses multiple Secure Elements and supports Clear Signing.
OneKey KeyTag Titanium
A hardware wallet protects the signing device, but the recovery seed also needs protection.
The KeyTag Titanium is designed as a durable physical backup option for users who want to protect recovery information over the long term.
For investors holding crypto for years rather than days, this part of the setup deserves the same attention as the wallet itself.
OneKey Delivery to San Jose
San Jose investors and Web3 developers can order OneKey through the following link:
Orders above US$99 qualify for free delivery, subject to applicable shipping availability and checkout terms.
The offer also includes up to 5 USDT cashback under the applicable promotion.
For San Jose users, the practical benefit is direct ordering without relying on an unknown local third-party seller.
The important security principle remains the same: purchase through an official or trusted channel and verify the device before setting it up.
Moving Away From an Exchange Creates a New Problem: Spending
Self-custody improves control, but it can also make everyday spending less convenient.
If every purchase requires sending crypto back to an exchange first, users can recreate some of the friction they were trying to avoid.
A better approach is to separate storage from spending.
The long-term holdings can remain protected in cold storage, while a smaller spending balance can move through services designed for everyday payments.
This creates a simple structure:
Cold storage for savings.
Payment tools for spending.
Exchange accounts for trading when needed.
Mypal: Spending From a Self-Custody Wallet
Mypal is designed to help users spend stablecoins without constantly moving funds back to a centralized exchange.
Users can top up from a self-custody wallet using supported assets such as USDT or USDC.
The service also supports Apple Pay and Google Pay for supported use cases, allowing users to connect crypto-based balances with everyday merchant spending.
For San Jose residents, this can be useful for separating long-term crypto holdings from everyday expenses.
Instead of moving the entire portfolio to an exchange, users can keep the majority in self-custody and only allocate the amount needed for spending.
Mypal invitation link:
Get Mypal — Invite Code 27090432
Invite Code: 27090432
KITE: A Spending Bridge for Developers
Web3 developers have a different spending profile.
Instead of mainly paying for retail purchases, developers may need to pay for cloud infrastructure, software subscriptions, API services, development tools, and server resources.
KITE is positioned as a borderless spending option with a virtual card for supported developer expenses.
This can be relevant for services such as AWS, GitHub, OpenAI API usage, and server infrastructure.
For developers who work across countries or operate remote Web3 projects, a separate spending tool can help keep business expenses away from long-term cold storage.
KITE referral link:
Get KITE — Referral Code OKLL5B
Referral Code: OKLL5B
The overall strategy remains straightforward: do not treat a cold wallet as a daily spending account.
Use the hardware wallet for assets that need stronger long-term protection. Then move only the required amount into a spending environment.
Three Self-Custody Paths for San Jose Users
The right setup depends on how the user interacts with crypto.
A solo developer has different requirements from a Web3 startup.
A community organizer also needs a different approach.
1. End User: Investor or Long-Term Holder
Individual investors can use a hardware wallet for long-term holdings.
A typical setup can look like this:
Exchange → Trading funds
OneKey → Long-term holdings
Mypal → Everyday spending
This structure separates different risks instead of placing everything in one account.
2. B2B and Web3 Teams
Startups, blockchain development teams, crypto investment firms, and other organizations can also consider hardware wallet deployments.
A business may need multiple devices for treasury management, operational separation, or controlled access.
Wholesale orders starting from 25 units can be relevant for teams, organizations, and Web3 communities that need hardware wallets at scale.
For teams, the focus should not only be on purchasing the devices.
They should also establish internal procedures for seed backup, transaction approval, device assignment, and recovery.
3. Community and Affiliator Track
Web3 communities, meetup organizers, university blockchain clubs, and local KOLs can also introduce self-custody education to their audiences.
The strongest community approach is educational rather than purely promotional.
Explain why exchange custody creates counterparty risk.
Then explain why hot wallets can expose private keys to online threats.
Finally, introduce hardware wallets as one option for reducing the attack surface.
This approach can create value for both users and community partners.
A Five-Step Secure OneKey Setup
Buying a hardware wallet is only the first step.
Users should also establish a secure setup process.
Step 1: Check the Package
Inspect the packaging and device before connecting it.
If anything looks suspicious, contact the manufacturer through an official support channel before proceeding.
Step 2: Use Official Software
Download the required wallet software from an official OneKey source.
Avoid installing wallet software through unknown links, advertisements, or random file-sharing websites.
Step 3: Generate the Recovery Seed Securely
Generate the recovery seed during the device setup process.
Avoid taking photos of it.
Keep it out of cloud storage.
Do not send it through WhatsApp, Telegram, email, or other messaging services.
The recovery seed should remain offline.
Step 4: Create a Durable Backup
Consider storing the recovery seed on a durable physical backup such as a compatible metal backup solution.
Keep the backup in a secure location separate from the hardware wallet.
Step 5: Consider an Optional Passphrase
Advanced users can consider an additional passphrase.
This is sometimes called a “25th word” when used with a 24-word recovery phrase.
However, a passphrase adds responsibility.
If the user forgets it, the associated wallet may become permanently inaccessible.
For that reason, users should only use this feature if they understand how recovery works.
Frequently Asked Questions
Is keeping crypto on an exchange always unsafe?
No.
Centralized exchanges can provide useful security systems and convenient access to trading.
The issue is counterparty risk.
Users depend on the exchange to maintain access to their assets.
For long-term holdings, some investors prefer to reduce that dependency through self-custody.
Is a hot wallet the same as cold storage?
No.
A hot wallet normally operates in an internet-connected software environment.
A hardware wallet keeps sensitive signing operations on a dedicated device. This can reduce exposure to certain remote attacks.
Can OneKey work with MetaMask, Rabby, and Phantom?
Hardware wallets can work with supported third-party wallet interfaces and decentralized applications.
However, compatibility depends on the specific wallet, network, and integration.
Users should verify current compatibility before connecting a device to a particular application.
Can businesses order OneKey in bulk?
Yes.
Wholesale orders starting from 25 units can be considered for eligible businesses, Web3 teams, communities, and organizations.
The exact wholesale terms should be confirmed before placing an order.
What is the difference between Mypal and KITE?
Mypal focuses on self-custody-based spending and supported retail payment methods such as Apple Pay and Google Pay.
KITE focuses more on borderless spending and virtual-card use cases, including developer and infrastructure expenses.
Both can complement cold storage by providing a spending layer without requiring users to keep their entire crypto portfolio on an exchange.
The Bottom Line: Exchange Collapse vs Self-Custody
The exchange collapse versus self-custody debate is ultimately about control and risk management.
Exchanges remain useful for trading and liquidity. However, users accept counterparty risk when they leave assets under third-party custody.
Hot wallets provide more direct control. However, they can remain exposed to the security risks of internet-connected devices.
Hardware self-custody creates another layer of separation.
For San Jose crypto investors and Web3 developers, a practical setup can combine these approaches instead of relying on one platform for everything.
Keep trading liquidity where it is needed.
Keep long-term holdings in a properly secured hardware wallet.
Use dedicated spending tools for everyday purchases and developer expenses.
For users exploring a self-custody setup, OneKey provides hardware options designed around dedicated key protection, transaction verification, and long-term storage.
OneKey Hardware Vault:
Get OneKey — Free Delivery Over US$99 + Up to 5 USDT Cashback
Mypal Self-Custody Spending:
Get Mypal — Invite Code 27090432
KITE Developer Spending:
Get KITE — Referral Code OKLL5B
The most important principle is simple:
Control your keys, verify what you sign, and separate long-term storage from everyday spending.
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