Treasury Proposes Rules Defining Who Can Sell Stablecoins

The U.S. Department of the Treasury this month released a proposed rule that would define who may legally issue and sell dollar-pegged stablecoins in the United States. The proposal sets eligibility criteria for sellers and outlines expectations for reserve holdings, transparency, consumer protections and anti-money-laundering controls.

The text describes conditions under which banks, nonbank firms and other financial institutions could act as stablecoin sellers. It specifies standards for reserve practices, procedures for redeeming tokens for fiat currency and reporting requirements intended to make backing assets and liquidity practices clearer to regulators and users.

The proposal clarifies when a seller would be treated as a regulated payments or deposit-taking institution and when other regulatory frameworks would apply. It links supervision and reporting obligations to existing banking and securities laws and sets out steps authorities expect firms to take to manage solvency and operational risks.

The department will publish the proposed rule in the Federal Register and accept public comments before issuing any final rule. Treasury officials said they coordinated the drafting with other federal agencies that oversee banking, securities and financial stability and that the final rule would reflect input gathered during the comment period.

Stablecoins are used for trading, payments and short-term storage of value across crypto markets. Regulators have raised concerns about issuer solvency, opaque reserve holdings and the risk of runs or market disruptions that could spill into the broader financial system. Past incidents involving liquidity shortfalls and unclear reserve management at some issuers prompted calls for clearer standards.

Advocates for stricter oversight say clearer rules could reduce consumer risk and improve market confidence. Industry groups have urged regulatory clarity that allows competition and innovation. Members of Congress continue to pursue separate legislative options to regulate stablecoins. The proposal “seeks to provide legal clarity for market participants,” the department wrote.