After becoming law last July, the U.S. stablecoin framework, the GENIUS Act, is now gearing up for the final implementation stage.
The U.S. National Credit Union Administration (NCUA), one of the four federal regulators overseeing the sector, has unveiled proposed rules for credit unions seeking to issue payment stablecoins.
Other regulators instructed by the GENIUS Act to formulate laws to operationalize the framework for payment stablecoins include the FDIC, OCC, and the Federal Reserve. So far, NCUA’s latest move makes it the first to push for implementation.
Reacting to the same, NCUA Chairman Kyle Hauptman said,
“We’re on track to meet the Congress’ July 18 deadline. Credit unions should be aware that they won’t be at a disadvantage versus other entities, whether in timing or standards.”
What’s next after NCUA draft proposals?
Under the NCUA’s proposed rules, federally insured credit unions (FICUs) cannot issue stablecoins directly; they can only do so through a subsidiary.
Besides, the FICUs must own over 10% of the subsidiary. So the NCUA licenses will be issued to the FICU subsidiary.
Regarding the application requirements, there will be a 120-day deadline for the NCUA’s decision after a potential issuer completes the filing. And applicants will have the right to reapply even after being denied. Other requirements, such as reserve backing, will be issued later.
Stakeholders (credit unions, industry groups, fintechs, etc) are expected to give feedback on these proposed rules by the 13th of April, 2026.
After reviewing these comments, the NCUA will revise and clarify the provisions. The process addresses concerns and refines the framework. After revisions, the NCUA issues updated rules as legally enforceable regulations. This action marks the final step in implementing the GENIUS Act.
That said, other top stablecoin players, such as Tether, Circle, and Ripple, will be regulated by the Office of the Comptroller of the Currency (OCC). To be eligible, these players have applied for national trust bank licenses.
But the OCC hasn’t issued proposed rules for them yet, with about five months before the Congress’s implementation deadline.
Impact on stablecoins
Since the GENIUS Act became law, the stablecoin market has surged from $250 billion to nearly $320 billion. However, the market has plateaued at around $308 billion amid the broader crypto market cool-off.
This underscored that crypto trading remains a major driver of stablecoin market growth despite rising interest in the payments segment.
Final Thoughts
- NCUA has proposed that credit unions seeking to become stablecoin issuers do so through subsidiaries they control.
- The credit unions watchdog sought stakeholders’ feedback by April to help hit the July 2026 implementation deadline.
