Fed stablecoin proposal would make circulation a capital cost for supervised issuers
- —Charge rate: 2% on first $20B outstanding, 1.5% on next $30B, 1% above $50B
- —An issuer with $1B in circulation would face a $20M baseline charge
- —25% of three-year average non-reserve revenue is added to the baseline
- —A separate 2% charge is proposed on uninsured deposits and undercollateralized repos in reserves
Why it matters: Stablecoin growth would carry a direct capital cost for issuers, potentially curbing expansion and affecting the economics of USDT and USDC.
Source: CryptoSlate