The NCUA is seeking public comment on a proposed rule that would establish operational, governance, and risk management standards for NCUA-licensed Permitted Payment Stablecoin Issuers (PPSIs) and federally insured credit unions (FICUs) participating in stablecoin-related activities under the GENIUS Act. The proposal is designed to create a regulatory framework for credit union-affiliated stablecoin issuers while aligning standards with those proposed for bank subsidiaries.

Under the proposal, eligible entities seeking approval to operate as PPSIs would be required to meet standards related to capital, liquidity, cybersecurity, compliance, governance, and operational resilience. The rule also outlines expectations for FICUs that invest in or partner with these entities, reflecting the NCUA’s focus on protecting the Share Insurance Fund while allowing credit unions to participate in emerging digital payment innovations.

NCUA Chairman Kyle Hauptman said the proposal is intended to ensure credit unions are not placed at a competitive disadvantage as stablecoin regulation evolves. Industry stakeholders, including credit unions, leagues, fintech providers, and compliance professionals, are encouraged to review the proposal and provide feedback on how the standards could impact innovation, operational risk, collaboration opportunities, and member services. The public comment period closes July 17, 2026.

Review the NCUA’s proposal.