The NCUA on Friday unveiled a sweeping supplemental proposed rule that would create the regulatory framework for credit union-affiliated entities to issue and manage payment stablecoins under the federal Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025.
The 269-page filing represents one of the most significant digital asset proposals ever issued by the NCUA and marks another major step in the agency's broader implementation of the GENIUS Act, which President Donald Trump signed into law in July 2025.
Under the proposal, federally insured credit unions would not be allowed to issue payment stablecoins directly. Instead, stablecoins would need to be issued through licensed subsidiaries regulated and supervised by the NCUA.
The proposed rule would establish standards covering reserves, liquidity, custody, cybersecurity, operational risk, governance, anti-money laundering compliance and disclosure requirements for those entities. It also proposes changes related to share insurance coverage and tokenized shares.
The filing makes clear that payment stablecoins would not be backed by the federal government or protected by NCUA share insurance, though reserves backing the stablecoins could be held in insured credit union accounts.
For credit unions, the proposal signals the NCUA's intent to formally integrate parts of the industry into the emerging stablecoin ecosystem while maintaining strict supervisory oversight and safety-and-soundness standards.
The proposal is now open for public comment for 60 days following publication in the Federal Register.
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