The National Credit Union Administration (NCUA) is proposing a rule that outlines the framework for applicants seeking approval to become a permitted payment stablecoin issuer.
The Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) charges the NCUA with licensing, regulating, and supervising payment stablecoin issuers that are subsidiaries of federally insured credit unions. The GENIUS Act also requires the NCUA to issue implementing regulations by July 18.
This rule proposes regulations to implement the required process for approval and licensure of permitted payment stablecoin issuers subject to the NCUA’s jurisdiction. It also proposes regulations limiting credit unions to investing in NCUA-licensed permitted payment stablecoin issuers.
“This proposed rule is the first step in NCUA’s implementation of the GENIUS Act,” NCUA Chairman Kyle Hauptman said. “We’re on track to meet the Congress’ July 18 deadline. Credit unions should be aware that they won’t be at a disadvantage versus other entities, whether in timing or standards.”
A forthcoming proposal will propose regulations to implement the standards and restrictions imposed by the GENIUS Act on permitted payment stablecoin issuers.
If finalized, the rule would require entities that want NCUA’s approval to become permitted payment stablecoin issuers to apply jointly with certain federally insured credit unions that have proposed investments in the applying stablecoin issuer.
The proposed rule is currently available for review in the Federal Register, where stakeholders will be able to submit comments. The comment period will close on April 13.
The GENIUS Act, signed into law last year, creates a regulatory framework for permitted payment stablecoin issuers in the United States.