The National Credit Union Administration published a Notice of Proposed Rulemaking detailing the framework for applicants seeking agency approval to issue stablecoins under the GENIUS Act. Regulators including the FDIC, OCC, and the Federal Reserve are also developing rules to support the broader payment-stablecoin regime, and stakeholders are invited to submit comments via the Federal Register by April 13. The rule represents the initial step toward implementing the GENIUS Act.
Under the plan, insured depository institutions would not be eligible to issue payment stablecoins directly; issuers would operate through federally insured credit union subsidiaries, with the parent institution retaining at least a 10% stake in the subsidiary. Licenses would be issued to the subsidiary entities, not the depository institutions themselves. Regulators would review complete applications within 120 days, and rejected applicants would have the opportunity to resubmit. Public comments would be considered after the April 13 deadline, with revisions to the framework to follow.
Large stablecoin issuers such as Tether (USDT), Circle (USDC), and RLUSD (Ripple) would fall under OCC oversight as part of the broader regulatory regime. NCUA Chair Kyle Hauptman said the agency is on track to meet the July 18 congressional deadline and stressed that credit unions should not be disadvantaged in timing or standards. The GENIUS Act tasks the NCUA with licensing, regulating, and supervising payment stablecoin issuers that are subsidiaries of federally insured credit unions, a structure the proposed rule would formalize.
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