Fed Opens Stablecoin Rulebook as Strategy Keeps Buying Bitcoin Into a Pullback

Two US-centered stories on September 29 show crypto developing along parallel tracks: rule-writing in Washington and steady balance-sheet accumulation on Wall Street. The Federal Reserve's stablecoin proposals have formally entered the public comment phase, while Strategy disclosed another Bitcoin purchase even as prices slipped and ETF demand cooled.

Fed Stablecoin Proposals Start the Public Comment Clock

The Federal Reserve Board unveiled two proposed rules on September 24 to implement the GENIUS Act, the federal stablecoin law enacted in July 2025. The formal comment period began today, when the proposals were published in the Federal Register, and feedback is due by November 30, 2026.

The first proposal targets payment stablecoin issuers supervised by the Fed. It would require them to fully back their tokens with permitted reserve assets, including short-term US Treasury bills and other high-quality liquid instruments. It also sets out standardized capital requirements, risk-management and custody standards, and clarifies which stablecoin-related activities Fed-supervised banks may undertake. The second proposal creates an application process for insured state member banks that want to issue payment stablecoins through a subsidiary, including procedures for appeals and hearings.

One provision deserves attention from exchanges and fintech firms. The rule text would bar issuers from paying interest or yield to holders solely for holding a stablecoin, and it introduces a presumption that yield routed through affiliates or related third parties counts as a prohibited payment. That may influence how stablecoin rewards programs are designed.

These are proposals, not final rules. The Fed noted that its approach resembles drafts already released by the OCC, FDIC and NCUA, which suggests US regulators are converging on a broadly consistent framework. The GENIUS Act itself takes effect on the earlier of 18 months after enactment or 120 days after final implementing regulations are issued.

Strategy Adds 1,665 Bitcoin Above Current Market Prices

Strategy filed a Form 8-K on September 28 showing it bought 1,665 BTC for about $142.7 million between September 21 and 27, at an average of $85,681 per coin. Total holdings now stand at 847,666 BTC, acquired for roughly $63.95 billion at an average cost of $75,437.

The purchase was funded mainly by selling about 1.47 million MSTR shares for $246.2 million in net proceeds. The remainder went toward repurchasing STRC preferred shares, a buyback of about $151.7 million for the week. It was the company's second straight weekly purchase after a two-week pause, and it followed a 950 BTC buy the week before.

Bitcoin has since retreated from its run toward $87,000 and traded around $83,500 on Tuesday morning, below Strategy's latest average purchase price.

ETF Inflows Cool as Yields and Oil Rise

Demand for US spot Bitcoin ETFs has slowed sharply. The funds took in roughly $134.5 million on September 25, compared with about $1 billion on September 21. Meanwhile, oil prices rebounded and Treasury yields reached their highest level in nearly 19 years, a backdrop that tends to weigh on non-yielding assets such as Bitcoin.

Traders now turn to Wednesday's August core PCE inflation reading and Friday's September nonfarm payrolls report, both of which could set the tone for risk assets heading into October.

What to Watch Next

In the short term the two stories pull in different directions, but over the longer term they point the same way. Clearer stablecoin rules strengthen the case for regulated dollar tokens as payment infrastructure, while continued corporate buying signals institutional appetite even during a pullback. The near-term test is macro: inflation data, payrolls and whether ETF flows recover. Comment letters filed before November 30 will also show where banks, issuers and crypto firms see the most friction in the Fed's draft.