Fed Researchers Study Adding Stablecoins to US Money Supply Data

According to Arzdigital on Sunday, September 6, 2026 (15 Shahrivar 1405), Federal Reserve researchers Kristen Payne and Mary-Frances Styczynski examined a framework under which stablecoins and other blockchain based financial instruments could eventually be incorporated into the US M1 and M2 money supply measures. The paper found that stablecoins used mainly for instant payments and transaction settlement resemble M1 style assets, while tokens used more for crypto trading or short term value storage resemble M2 assets.

The researchers also flagged technical hurdles, including the risk of double counting stablecoin issuers' reserves, which are often already reflected in M1 or M2 through bank deposits and Treasury holdings, and the difficulty of identifying wallet holders' locations to separate domestic US circulation from global use. They stressed the paper reflects their personal views only, not official Federal Reserve policy or any decision to immediately change liquidity calculations.