The NCUA accelerates the implementation of the GENIUS Act with new rules for stablecoins

The NCUA introduced its proposal to implement the GENIUS Act, allowing credit unions to apply for authorization as issuers of regulated payment stablecoins, a key step in integrating the traditional financial sector with the crypto ecosystem.

This month, the National Credit Union Administration (NCUA) took an important step toward implementing the GENIUS Act. legal framework that will regulate payment stablecoins in the country. 

The institution, which plays a role similar to the FDIC within the cooperative system, not only protects members' deposits but also ensures the sector's financial stability and compliance with prudential regulations. The new bill more precisely regulates the relationship between stablecoin issuers and the reserves backing these digital assets, guaranteeing transparency and soundness in transactions.

La GENIUS ActThe law, passed in July 2025, laid the groundwork for the creation of so-called payment stablecoins, which are blockchain-based digital assets designed to be securely integrated into the U.S. financial system. This legislation distributed regulatory responsibility among the NCUA, the FDIC, the OCC, and the Federal Reserve. Each of these entities must issue its final rules by July 18, 2026.

By acting ahead of other federal agencies, the NCUA is giving credit unions a head start over banks that already issue global stablecoins like Tether, Circle, and Ripple, which are still awaiting OCC regulations. This move strengthens the competitiveness of the credit union sector and opens the door to their direct participation in the regulated digital payments ecosystem.

Cooperatives are moving into the new field of digital payments

In keeping with regulatory clarity in the cryptocurrency market, the NCUA published a Notice of Proposed Rulemaking in the Federal Register outlining how credit unions can register as “permitted issuers of payment stablecoins” or PPSI. 

NCUA President Kyle Hauptman emphasized that this initiative responds to a congressional mandate, which set July 18 as the deadline for establishing a concrete regulatory framework. He explained that the agency is progressing as planned and working to ensure that the cooperatives under its supervision assume a leading role within the digital financial ecosystem. His message aims to strengthen the confidence of the cooperative sector, which sees this process as an opportunity to compete on a level playing field with traditional banks.

"We are on track to meet the Congressional deadline of July 18. Credit unions should be aware that they will not be at a disadvantage compared to other entities, either in terms of timing or standards.", said Hauptman.

The federal agency's proposal stipulates that cooperatives will not be able to issue stablecoins directly from their main balance sheet. Instead, they must do so through a separate subsidiary, in line with the model defined by the GENIUS Act. This structure, in which the parent cooperative will maintain control exceeding 10%, will allow the NCUA to grant a separate license to the subsidiary and preserve the separation between traditional activities and digital asset operations.

The proposed draft also establishes a more streamlined authorization process. Once an application is submitted, the NCUA will have 120 days to evaluate it. If authorization is denied, applicants can resubmit without undue obstacles, fostering a more transparent and efficient relationship between entities and the regulator. Furthermore, the draft includes more stringent requirements, such as full backing of stablecoins with equivalent assets, background checks on executives, implementation of cybersecurity protocols, establishment of anti-money laundering (AML) standards, and the development of operational resilience plans. 

With this proposal, the NCUA takes a crucial step toward integrating credit unions into the digital economy. The measure lays the groundwork for more secure and structured participation of the cooperative system within the rapidly evolving world of blockchain-based finance, an environment that demands regulatory clarity to ensure trust and stability.

GENIUS Act: The new financial order for stablecoins in the United States

The passage of the GENIUS Act in the United States in the middle of last year marked a key turning point in the evolution of the stablecoin market. This legislation established a federal framework that limits the issuance of payment stablecoins to banks, credit unions, and certain pre-vetted non-bank entities. The new structure requires these organizations to operate through subsidiaries subject to independent oversight, a model that the NCUA seeks to solidify through its most recent regulatory proposal.

Since the law came into effect, the circulation of stablecoins has grown significantly. The total value of this market jumped from approximately $250.000 billion to over $300.000 billion in a matter of months, an expansion that confirms its consolidation within the digital payments system. For experts, this progress reflects how stablecoins are moving from a niche tool to a relevant component of the global financial infrastructure.

In this new scenario, companies like Tether (USDT), Circle (USDC), and Ripple (RLUSD) are already preparing their transition to national trust bank licenses under the GENIUS Act. However, the Office of the Comptroller of the Currency has yet to define the final rules, a delay that could allow credit unions to take the lead in issuing these assets. 

If this scenario materializes, these institutions would have the opportunity to strengthen their position in the digital financial sector, supported by robust regulation and direct federal supervision.