Overview
- NCUA published draft rules creating a Permitted Payment Stablecoin Issuer license for credit‑union‑affiliated subsidiaries, with comments due by April 13, 2026.
- Federally insured credit unions would be barred from issuing stablecoins directly, with issuance limited to NCUA‑licensed subsidiaries in which the credit union holds more than 10% ownership.
- The proposal lays out governance, executive background checks, anti‑money‑laundering and cybersecurity safeguards, and signals 1:1 reserve backing and redemption rights with further detail to follow in subsequent packages.
- Applications for PPSI status would require an NCUA decision within 120 days, and the draft affirms technological neutrality by saying use of open or decentralized blockchains cannot be the sole reason for denial.
- The framework would restrict insured credit unions from investing in or lending to unlicensed stablecoin issuers, and it advances GENIUS Act implementation alongside other regulators, with the FDIC having issued proposals in December 2025.