MAS Seeks Feedback on Proposed Stablecoin Regulations

The Monetary Authority of Singapore (MAS) has proposed legislative amendments to formally establish its regulatory framework for stablecoins, moving from policy guidance to enforceable law. The consultation, opened on September 1, 2026, seeks public feedback on changes to the Payment Services Act that would define which issuers can use the "MAS-regulated stablecoin" designation and the strict requirements they must meet. The proposed framework centers on four key pillars: reserve backing, redemption at par, disclosure obligations, and capital requirements for issuers. To qualify, stablecoins must be single-currency tokens issued in Singapore and pegged to the Singapore dollar or a Group of Ten currency. Issuers would be required to maintain reserve assets valued at no less than 100% of outstanding tokens at all times, held in segregated accounts separate from the issuer's own assets. Holders must be entitled to redeem their stablecoins at par value within five business days. MAS is also proposing several new consumer safeguards. A key provision would prohibit regulated stablecoin issuers from paying interest or other benefits calculated based on a customer's holdings.