The proposal outlines how credit unions may apply to issue payment stablecoins under the GENIUS Act and sets a public comment deadline of April 13.

The National Credit Union Administration on Wednesday unveiled its first proposed rule to implement the federal framework for payment stablecoins, opening the door for credit unions to seek approval as issuers of the digital tokens under last year’s GENIUS Act.

The Notice of Proposed Rule Making lays out the requirements for applicants seeking designation as a “permitted payment stablecoin issuer,” or PPSI — a status created by the Guiding and Establishing National Innovation for U.S. Stablecoins Act, which Congress approved in 2025. 

Federal agencies are required to complete rulemakings under the law by July 18.

“This proposed rule is the first step in NCUA’s implementation of the GENIUS Act,” NCUA Chairman Kyle Hauptman said in a statement. “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.”

Stablecoins, a class of cryptocurrencies designed to maintain a steady value by tying themselves to assets like the U.S. dollar, have circulated for years as a potentially faster and cheaper alternative to traditional electronic payments. But the GENIUS Act established the country’s first federal guardrails for their issuance, specifying that only approved entities may bring payment stablecoins to market.

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Banks may qualify automatically under the law. Federally insured credit unions and their subsidiaries, however, must apply and meet regulatory standards.

Under the NCUA’s proposal, applicants and their parent companies would need to demonstrate financial health, responsible management and viable business plans. Federal credit unions that choose to issue stablecoins through a subsidiary must do so via a credit union service organization, or CUSO, and must primarily serve credit union members.

The agency said it would render a decision on an application within 120 days. Once approved, a licensed issuer would be required to certify within 180 days — and annually thereafter — that it has implemented anti-money laundering and economic sanctions compliance programs.

The proposed rule has been published in the Federal Register, with a public comment period open through April 13, 2026. The NCUA also posted additional guidance on its Financial Technology and Digital Assets Resource Page.

The move drew praise from America’s Credit Unions, a national trade association that had pushed for credit unions to be included in the GENIUS Act.

“America’s Credit Unions actively championed the inclusion of credit unions in the GENIUS Act, and we appreciate that today’s stablecoin proposal reflects that work,” said Scott Simpson, the group’s president and chief executive. “Credit unions should have the same opportunity as any other federally regulated institution to participate in emerging payment systems.”

He added that the organization was encouraged the proposal addressed “key questions regarding the role of credit union subsidiaries that may serve as stablecoin issuers” and said it would submit comments to ensure the application process is “clear, timely, and workable for credit unions of all sizes.”

For smaller institutions that have watched larger banks experiment with digital assets, the rule signals both opportunity and heightened scrutiny as regulators begin to define how stablecoins will fit into the traditional financial system.

“Credit unions should have the same opportunity as any other federally regulated institution to participate in emerging payment systems.”

– Scott Simpson
President & CEO
America’s Credit Unions