The NCUA issued a supplemental proposed rule on Friday outlining the operational and risk management standards for an NCUA-licensed permitted payment stablecoin issuer, as outlined in the GENIUS Act.

"The NCUA's issuance of a proposed rule to implement GENIUS Act provisions is a positive step, and we appreciate the NCUA's willingness to offer a clarifying statement on the permissibility of offering tokenized shares,” said Kathleen Coulombe, America’s Credit Unions chief advocacy officer. “As trusted financial partners, credit unions are poised to support innovation and adoption within the digital assets marketplace. The NCUA's implementation approach must provide flexibility while reinforcing the agency's commitment to providing credit unions with regulatory clarity."

This rule builds on a February proposal from NCUA implementing the GENIUS Act. America’s Credit Unions recommended the NCUA consider flexible approaches to expand credit union participation in stablecoin markets in comments filed last month.

The new proposal covers requirements for: issuance rules, reserve requirements, redemption rules, risk management, custody, capital, and reporting and supervision.

Comments are due by July 17. America’s Credit Unions will issue a Regulatory Comment alert to solicit feedback from member credit unions in the coming weeks.

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