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NCUA Proposes Clear Pathway for Credit Unions to Issue and Hold Stablecoins - Crypto Economy
TL;DR:
The United States National Credit Union Administration (NCUA) is making history by proposing the first set of rules under the GENIUS Act. This legal framework seeks to define how entities can issue and hold stablecoins in credit unions, ensuring strict federal supervision.
The proposal indicates that credit unions will not be able to perform these operations directly; instead, they must channel them through specialized subsidiaries. These units must obtain a “Permitted Payment Stablecoin Issuer” (PPSI) license to operate legally within the digital ecosystem.
Undoubtedly, this is a vital regulatory advancement for the more than 4,000 supervised credit unions that manage over $2.3 trillion in assets. In this way, the goal is to integrate technological innovation without compromising the stability of the traditional financial system.

Technological Flexibility and Efficient Approval Deadlines
One of the most prominent aspects of the proposal is its technological neutrality regarding the networks used. The NCUA will not be allowed to reject an application simply because the stablecoin is issued on a public or decentralized blockchain network.
Furthermore, the regulator has established a “120-day clock” to process applications once they are deemed complete. If the agency fails to issue a response within that period, the license will be considered approved by default, thereby promoting administrative agility.
In summary, this rulemaking phase is open for public comment for a period of 60 days. Future proposals are expected to address critical details such as capital reserves, liquidity, and technological risk management for new issuers.