Quick facts
- Type: the U.S. central bank
- Created: 1913
- Led by: a Board of Governors, chaired by Kevin Warsh
- Crypto role: helps write stablecoin-issuer rules and supervises banks
What it is
The Federal Reserve is the central bank of the United States. It sets monetary policy, supervises certain banks, and oversees parts of the payments system. It is governed by a Board of Governors in Washington and a network of regional Reserve Banks.
Why it matters in crypto
The Fed does not license crypto exchanges or decide which tokens are securities. Its crypto role comes through banks and payments: it supervises banks that may touch digital assets, and under the GENIUS Act it is responsible for parts of the framework governing payment stablecoin issuers, including those that are subsidiaries of Fed-supervised banks.
Who runs it
Kevin Warsh was sworn in as Federal Reserve Chair, according to Fox Business and other outlets.
Recent moves
On September 24, 2026, the Fed proposed the rules that would govern how a payment stablecoin issuer operates. The proposal includes a tiered capital charge of 2% on an issuer's first $20 billion outstanding, 1.5% on the next $30 billion, and 1% above $50 billion; redemption within two business days; and monthly reserve reports signed off by a registered public accountant and certified by the issuer's CEO and CFO. A second proposal covers how Fed-supervised banks apply to issue stablecoins through subsidiaries. The law takes effect January 18, 2027, or 120 days after final rules, whichever comes first. Our full breakdown is in the Fed's stablecoin rulebook.
Timeline
- July 18, 2025: the GENIUS Act is signed into law
- September 24, 2026: proposes capital, redemption, and reporting rules for payment stablecoin issuers, plus a bank-subsidiary application framework
- January 18, 2027: the GENIUS Act takes effect, or 120 days after final rules, whichever comes first
How it fits with the other agencies
Stablecoin oversight under the GENIUS Act is split across several agencies, and the Fed is one piece. The OCC charters crypto-native firms seeking to operate as federal trust banks, while the Fed's proposal covers how banks it supervises apply to issue stablecoins through subsidiaries. The Treasury Department and its bureaus, including FinCEN, handle the anti-money-laundering side.
This is why we describe the framework as having 'at least two doors.' A bank-owned issuer and a crypto-native issuer can end up under different supervisors but the same underlying reserve and redemption requirements, which is the outcome the GENIUS Act's structure is designed to produce.
What to watch
The central questions are whether final rules arrive before the statutory date, whether the regressive capital tiers survive public comment, and how the Fed's bank-subsidiary path interacts with the OCC's charter track. Related terms: GENIUS Act and stablecoin.
Frequently asked
Does the Federal Reserve regulate crypto?
Not broadly. It supervises banks and, under the GENIUS Act, helps write rules for payment stablecoin issuers, but it does not oversee crypto exchanges or decide which tokens are securities.
What does the Fed's stablecoin proposal require?
Tiered capital charges, redemption within two business days, immediate notice to the Fed if reserves fall below full backing, and monthly reserve reports with accountant sign-off and executive certification. It is a proposal, so details can change before final rules.
When does the GENIUS Act take effect?
On January 18, 2027, or 120 days after final implementing rules, whichever comes first.
Further reading
- Federal Reserve: official website
- Fox Business: Kevin Warsh sworn in as Federal Reserve chair
- ChainBrief: The Fed just wrote the actual rulebook for stablecoins
- ChainBrief comparison: GENIUS Act vs. MiCA
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