Comment on NCUA’s stablecoin proposal
Working to amplify the credit union voice in ongoing stablecoin discussions, America’s Credit Unions’ new Regulatory Comment alert focuses on NCUA’s implementation of the GENIUS Act.
America’s Credit Unions will also host two working group calls to discuss the proposed rulemaking to gather feedback based on the proposal. The alert provides information addressing how to join the calls.
NCUA’s proposal:
- Establishes requirements for a permitted payments stablecoin issuer (PPSI) to maintain adequate reserves and ensure sufficient reserve asset diversification.
- Requires PPSIs to adopt comprehensive risk management practices, internal controls, audit procedures, vendor supervision policies, and information security programs.
- Establishes a minimum capital “floor” of $5 million for new NCUA-licensed PPSIs and a 12-month operational cash reserve, but the NCUA will evaluate the adequacy capital plans on an individualized basis rather than according to a strict rubric.
- Clarifies important limits on PPSI activities, including the prohibition on offering yield or interest on stablecoins.
Submit comments to America’s Credit Unions by July 5 and directly to the NCUA by July 17.
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