The National Credit Union Administration (NCUA) has released its first proposed rules under the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act.
The NCUA oversees more than 4,000 federally insured credit unions. These institutions serve about 144 million members and hold around $2.38 trillion in assets as of mid-2025.
The agency aims to create a clear process for how stablecoin issuers connected to credit unions would operate and be monitored.
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The proposal stated that any issuer linked to an insured credit union must obtain a “permitted payment stablecoin issuer” (PPSI) license from the NCUA before launching a stablecoin. It also said that credit unions cannot invest in or lend to a stablecoin issuer unless the issuer already holds a PPSI license.
At this stage, the proposal focuses on licensing steps and supervisory rules. It does not authorize credit unions to begin offering stablecoin products to members.
Two parts of the draft may carry effects for the crypto industry. First, the NCUA cannot reject a complete application only because the stablecoin uses an open or decentralized network. This prevents the agency from dismissing public-blockchain issuance on that basis alone.
Second, once an application is considered complete, the agency has 120 days to approve or deny it. If no action is taken in that period, the application is automatically approved.
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