Federal reserve stablecoin rules delayed over a year
US regulators miss deadline to propose rules for stablecoin issuers under the GENIUS Act, a year after Congress signed the law.
Key Takeaways
- The Fed and other agencies missed a statutory deadline to propose federal reserve stablecoin rules under the GENIUS Act.
- The delay leaves stablecoin issuers in legal limbo as Congress intended to establish national standards within a year.
- Two competing regulatory proposals are now being solicited, signalling disagreement over how tightly to govern digital dollar substitutes.
US financial regulators have missed a year-long deadline to issue Federal reserve stablecoin rules under legislation Congress passed last September, according to Cointelegraph. Instead of finalised regulations, the Federal Reserve is now requesting public comment on two competing proposals for how private companies should be permitted to issue stablecoins, the cryptoassets designed to hold a steady value pegged to the dollar or another reference asset.
The delay reveals a fundamental tension in how Washington approaches stablecoin regulation: whether to tighten control or permit innovation. It also leaves the industry hanging, since companies cannot know the final ruleset they must comply with.
| Law signed | September 2025 |
|---|---|
| Deadline missed | September 2026, one year after enactment |
| Current action | Fed requests public comment on two stablecoin issuance proposals |
| Source | Cointelegraph, 26 September 2026 |
Why Congress set a stablecoin deadline and regulators missed it
The GENIUS Act, which became law in September 2025, required Federal reserve stablecoin rules to be proposed within one year. This was not a casual target. Congress wanted to establish a national framework quickly because stablecoins had grown into a significant corner of crypto markets, and the regulatory void created risks: some issuers were undercapitalised, others were opaque about their backing assets, and a few had already collapsed and wiped out user deposits.
Twelve months passed, and no finalised rules appeared. The deadline slipped without public explanation of why the Fed, the Office of the Comptroller of the Currency and other involved agencies could not meet it. Instead, regulators are now seeking external input on two separate models, a move that typically delays finalisation by months.
The two approaches now under debate
One path would give banks the primary role in issuing or backing stablecoins, essentially treating them as a variant of existing bank deposits. This model appeals to traditional financial institutions and regulators who prefer known entities with established compliance infrastructure.
The other model would allow non-bank fintech firms to issue stablecoins directly, provided they meet strict reserve requirements and ongoing Federal reserve stablecoin rules on transparency and capital. This approach preserves competitive entry but requires more active supervisory oversight.
Each has trade-offs. The bank-centric approach is safer in theory but could entrench the existing financial system and price out innovation. The fintech model is faster to scale but demands regulators to monitor new market entrants constantly.
Why Federal reserve stablecoin rules matter to the broader market
Stablecoins are used globally to move value across blockchain networks and to settle trades on crypto exchanges. If the US imposes restrictive Federal reserve stablecoin rules, companies may shift operations overseas or issue stablecoins in competing jurisdictions, fragmenting the market. If rules are too loose, the risk of another stablecoin failure rises.
What the delay costs the industry right now
Companies cannot lobby effectively or plan compliance without knowing the final framework. Banks hesitate to enter stablecoin partnerships. Fintech firms cannot commit capital to a product whose regulatory status is unknown. The uncertainty tax spreads through venture funding and hiring decisions.
The comment period on the two proposals will likely stretch into late 2026 or early 2027. After that, regulators must synthesise feedback, negotiate internal disagreements, and publish Federal reserve stablecoin rules in a form that carries legal force. A realistic timeline for finalisation is mid-2027 at the earliest, putting the regulatory process almost two full years behind the statutory intent.
For a deeper dive into how stablecoin regulation affects your crypto holdings and the broader digital asset ecosystem, read Thewealthora’s complete guide to cryptocurrency regulation and stablecoin frameworks.
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Originally reported by Cointelegraph. Facts verified; analysis and wording are Thewealthora’s own.
Ethan Caldwell
Executive Editor, Markets
Ethan Caldwell is Executive Editor of Thewealthora's Finance Wire, the desk that carries this site's fast coverage of US equities, corporate earnings, central bank decisions and the macro calendar.
