Fed proposed stablecoin rule could trigger a 48-hour liquidation run - CryptoSlate

The Federal Reserve has proposed a rule concerning stablecoin reserves that market observers say could accelerate redemption pressures during periods of stress. According to CryptoSlate, the proposal could, under certain conditions, trigger a liquidation run compressed into roughly 48 hours — a notably short window for a market that trades around the clock.

The concern centers on how quickly stablecoin issuers could meet redemptions if reserve requirements or redemption mechanics tighten. Stablecoins sit at the center of crypto trading pairs and collateral stacks, so any rule that alters their liquidity profile can ripple outward — affecting exchange order books, lending markets, and the cost of hedging.

What to watch: the final rule's language on reserve composition and redemption timing, issuer disclosures about buffer assets, and whether stablecoin secondary-market prices deviate from par during stress. For market participants, the key question is not whether redemptions happen, but how fast and with what collateral — because speed, not size, is what turns an orderly unwind into a cascade.