On February 11, 2026, the NCUA issued a proposed rule outlining the framework for applicants seeking NCUA approval to become a permitted payment stablecoin issuer. The proposed rule marks the NCUA’s first step in implementing the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act).
The GENIUS Act gives the NCUA the responsibility to license and regulate payment stablecoin issuers that are part of federally insured credit unions. The NCUA must create new regulations by July 18, 2026, for approving and licensing these issuers. Additionally, the regulations will limit federally insured credit unions to investing only in NCUA-licensed stablecoin issuers.
The NCUA has proposed that FICU subsidiaries submit applications for NCUA-licensed PPSI along with their FICU Parent Companies, instead of requiring every FICU that invests in them to apply individually. This approach also requires the applying subsidiary and its Parent Companies and Principal Shareholders to certify that all submitted materials to the NCUA are truthful and complete. Additionally, all Directors and Officers of the applying entities must provide information needed to assess their qualifications and confirm they have no felony convictions as per the GENIUS Act. The Agency wants to limit FICUs to investing only in NCUA-licensed PPSIs, believing this aligns with the intent of the GENIUS Act and will not hinder credit unions from providing payment stablecoin services to their members. The Board assured that Credit unions that they won’t be at a disadvantage versus other entities, whether in timing or standards.
Comments on the proposed rule will be accepted until April 13, 2026.
Read the NCUA’s press release here.
The Federal Register Notice can be found here.
