Credit unions that want to become “permitted payment stablecoin issuers” will get that opportunity under a rule proposed Wednesday by their federal regulator, lagging other federal supervisors.
The National Credit Union Administration (NCUA) said the proposal implements provisions of the GENIUS Act, enacted late last year. That law (which stands for the Guiding and Establishing National Innovation for U.S. Stablecoins) outlines application provisions for financial institutions to issue stablecoins. More specifically, it allows financial institutions to issue payment stablecoins through a subsidiary and to engage in “certain related activities.”
The agency said Wednesday’s proposal is the first step in its implementation of the new law. NCUA also claimed it is on track to meet the July 18 deadline under the law for regulators to adopt regulations. Under the law, regulators are required to receive and review applications and to issue implementing regulations establishing the application process.
The credit union regulator is far behind federal bank supervisors in promulgating a rule: in December, the Federal Deposit Insurance Corp. (FDIC) issued its proposal for a 60-day comment period. Comments, apparently, have been slow in coming: the agency on Feb. 6 announced it was extending the comment period to May 18. The original due date was Feb. 17.
NCUA said the comment period on its proposal would end on April 13.
NCUA Proposes Rule for Permitted Payment Stablecoin Issuer Applications
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