The Fed proposes two-business-day stablecoin redemptions and capital charges scaled to issuer size
Issuers the Fed supervises would have two business days to process redemptions and an operational-risk charge of 2% on the first $20 billion outstanding, 1.5% on the next $30 billion and 1% above $50 billion, per Cointelegraph.
Those issuers would have to publish monthly reports on stablecoins outstanding and the composition of their reserves, examined by a registered accounting firm and certified by the CEO and CFO, per Cointelegraph. The other proposal sets the application process for banks that want to issue stablecoins. The comment period is 60 days after publication in the Federal Register, per Decrypt.
The Fed also proposes that certain third-party arrangements paying interest or yield be presumed prohibited, mirroring an earlier OCC proposal, per CoinDesk. "Stablecoins will only be stable if they can be reliably and promptly redeemed at par in a range of conditions," said Fed Governor Michael Barr.
Sources: Cointelegraph · CoinDesk · Decrypt