The National Credit Union Administration recently announced a proposed rule outlining the operational and risk management standards for an NCUA-licensed permitted payment stablecoin issuer (PPSI), which is currently open for comment. Stablecoins are a form of digital asset/cryptocurrency that maintain stable value in reference to a reference asset, e.g. the US dollar.
The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which was signed into law July 2025, provides the framework for federal regulation regarding payment stablecoins. NCUA’s proposed rule supplements a February 2026 proposed regulation to “govern investments in and licensing of permitted payment stablecoin issuers subject to the NCUA’s jurisdiction.”
“This proposed rule supports my view that credit unions will face no disadvantage compared to other entities regarding standards” said NCUA Chairman Kyle Hauptman. “Stakeholders will see that we worked diligently to align the standards for NCUA-licensed PPSIs with the standards that are proposed for bank subsidiaries.”
The new proposal addresses issuance, reserves, redemption, risk management, reporting, as well as a select few other areas.
America’s Credit Unions has previously called for NCUA to allow for flexibility in its rules, which Chief Advocacy Officer Kathleen Coulombe reinforced in a statement, saying, “As trusted financial partners, credit unions are poised to support innovation and adoption within the digital assets marketplace. The NCUA’s implementation approach must provide flexibility while reinforcing the agency’s commitment to providing credit unions with regulatory clarity.”
Interested stakeholders have until July 17 to comment on the rule. For the full rule, and to submit a public comment, visit the Federal Register.
