Fed Proposes Stablecoin Rules: 1:1 Reserves, Two-Day Redemptions, Weekly Reporting

The two-business-day redemption window is the provision that reframes stablecoin issuance as a payments utility rather than a yield product, since it forces issuers to hold genuinely liquid reserves rather than reaching for duration. The bank-subsidiary application track matters most for institutions that already sit under Fed supervision and now have a defined path in, while non-bank issuers face a separate and still-unsettled route. The 60-day comment period is where reserve composition, custody and the treatment of offshore issuance will actually be contested; whether the final rule keeps the two-day clock intact is the open question.