ARK Invest adds crypto fund to blockchain-focused ETF lineup, Fed proposes stablecoin oversight framework
Cathie Wood's ARK Invest launches venture fund on the blockchain, offering trading for Kalshi, OpenAI. Federal Reserve proposes stablecoin rules.
Source: Investor's Business Daily on MSN · September 26, 2026 at 3:02 AM · AI-assisted report
Single-sourceUNITED STATES, 26 SEPTEMBER 2026 —
Cathie Wood’s ARK Invest has launched a new venture fund built on blockchain technology, offering investors access to trading opportunities in Kalshi and OpenAI, while the U.S. Federal Reserve simultaneously proposed a comprehensive regulatory framework for payment stablecoins.
Market Impact
The dual developments mark a significant convergence of traditional venture capital strategies with decentralized finance infrastructure, as major institutional players move to integrate digital assets into their core portfolios and regulatory bodies finalize the rules governing the industry’s most prominent asset class.
The Federal Reserve Board announced on September 24, 2026, that it is requesting public comment on two proposed rules designed to establish a regulatory framework for payment stablecoin issuers under its supervision. These proposals implement requirements under the Guiding and Establishing National Innovation for U.S. Stablecoins Act, commonly known as the GENIUS Act.
The move signals a shift from a fragmented state-level regulatory environment to a unified federal oversight model, aiming to provide clarity for banks and financial institutions seeking to issue or hold digital tokens pegged to fiat currencies.
The first proposal mandates that Board-supervised issuers fully back their stablecoins with permissible reserve assets. According to the Federal Reserve, these assets include short-term U.S. Treasury bills and other high-quality, liquid assets. The proposal establishes standardized capital requirements and risk-management standards to ensure issuers maintain sufficient reserves to back outstanding stablecoins.
It also addresses the GENIUS Act’s prohibition on paying interest or yield to holders, stating that certain arrangements involving third parties would be presumed prohibited. This stance is consistent with a separate proposal from the Office of the Comptroller of the Currency. Both proposals were approved in unanimous board votes.
Fed Governor Michael S. Barr stated that public input on reserve asset limitations, capital requirements, and interest rate and foreign currency risks would be useful. He added that while the proposal is an important step, further work will undoubtedly be required for stablecoins to become reliable payment instruments. The Federal Reserve shared the announcement through its official X account, emphasizing the need for safeguards.
The proposal includes monthly reserve reporting certified by an issuer’s CEO and CFO, ensuring transparency in the assets backing the digital tokens.
The second proposal establishes a tailored application process for Board-supervised banks seeking approval to issue payment stablecoins. Banks must submit a business plan and financial information, among other materials, to gain approval. The proposal outlines procedures for appeals, hearings, and final determinations, creating a formal pathway distinct from the prudential requirements of the first proposal.
This process is designed to clarify which stablecoin activities are allowed for banks supervised by the Federal Reserve, providing a clear regulatory route for major financial institutions to enter the stablecoin market.
Both proposals are open for public comment for 60 days after their publication in the Federal Register. The GENIUS Act, signed by President Donald Trump on July 18, 2025, after passing the Senate by 68-30 and the House by 308-122, created a federal framework for payment stablecoins in the United States. Before the Act, stablecoin issuers faced a mix of state rules, and federal agencies disagreed over which agency should oversee the market.
The new law moved oversight toward federal banking regulators, establishing rules for compliant payment stablecoins and defining them as digital tokens designed to maintain a steady value against a real-world currency, most commonly the U.S. dollar.
ARK Invest’s launch of a blockchain-based venture fund represents a parallel development in the institutional adoption of digital assets. By offering trading for Kalshi and OpenAI, the fund integrates prediction markets and artificial intelligence companies into a blockchain-native structure. This move aligns with the broader trend of traditional asset managers exploring decentralized finance tools to access new asset classes.
The simultaneous release of the Fed’s stablecoin rules and ARK’s fund launch underscores the growing legitimacy of blockchain technology in mainstream finance, as regulatory clarity begins to take shape.
The proposed framework specifically applies to issuers supervised by the Federal Reserve, distinguishing it from a universal rule covering every stablecoin issuer in the U.S. The Fed identified short-term Treasury bills and other high-quality, liquid assets as examples of qualifying reserves, with the proposal including strict requirements for firms that safeguard the assets backing payment stablecoins.
The regulatory focus on credit and operational risks, along with controls for stablecoin activities, aims to mitigate systemic risks associated with the rapid growth of digital currencies. As the comment period opens, market participants will closely monitor how the final rules address the balance between innovation and financial stability, potentially influencing the pace of institutional adoption in the coming months.
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