The NCUA has released a sweeping supplemental proposed rule that would formally establish how credit union-affiliated entities could participate in the emerging payment stablecoin market, marking one of the most significant digital asset regulatory proposals in the agency's history.
The 269-page filing, scheduled to be published Monday in the Federal Register, implements major portions of the Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025, the federal stablecoin law signed by President Donald Trump in July 2025.
Under the proposal, federally insured credit unions would not directly issue payment stablecoins. Instead, stablecoins would need to be issued through licensed subsidiaries regulated by the NCUA, including certain CUSOs and other eligible subsidiaries.
"This proposed rule supports my view that credit unions will face no disadvantage compared to other entities regarding standards," NCUA Chairman Kyle Hauptman said in a prepared statement Friday afternoon. "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 proposal established extensive standards covering reserves, liquidity, governance, operational resilience, cybersecurity, anti-money laundering compliance and redemption procedures. Stablecoin issuers would be required to maintain one-to-one reserves backed by highly liquid assets and publicly disclose reserve holdings.
The filing also clarified that payment stablecoins would not be protected by the National Credit Union Share Insurance Fund and would not carry federal government backing, though reserves could be held in insured credit union accounts.
For credit unions, the proposal could create new opportunities in digital payments, tokenized financial services and settlement infrastructure while also introducing significant compliance and supervisory expectations.
The proposal further signaled that the NCUA intends to closely integrate credit unions into the evolving digital asset ecosystem rather than allow banks and fintech firms to dominate the space.
The proposed rule is open for public comment for 60 days following publication in the Federal Register.
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