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Fed proposal sets two-business-day stablecoin redemption limit
Researchers said $76.0 billion in reserve-backed dollar stablecoins sit at centralized exchanges, potentially leaving exchange-led timelines separate from the issuer’s two-business-day clock.
The Federal Reserve’s proposed stablecoin rule would establish a general two-business-day limit on redemptions for certain issuers it supervises, under a framework that distinguishes an issuer’s redemption process from the steps a stablecoin holder may need to take through a trading venue. According to CryptoSlate, the proposal would require Board-supervised issuers to disclose redemption procedures and explain how customers can redeem and accept redemption requests for at least one token, subject to screening and onboarding. The Board could also extend the redemption period for safety, financial stability, or the public interest.
CryptoSlate also cites a July 28 venue snapshot from researchers at the Andersen Institute for Finance and Economics that identified $76 billion of stablecoins at centralized exchanges. The researchers said the figure was across 12 reserve-backed dollar stablecoins and that it should be treated as a lower bound because some exchange wallets could not be identified.
The proposal was published in the Federal Register on Sept. 29 after the Board announced it on Sept. 24, with details including proposed Section 247.12, which would cap normal redemption timing by supervised issuers at two business days following a request. CryptoSlate’s summary also notes that customer exits could still depend on whether an exchange releases or converts balances before a holder reaches an issuer.