President signs GENIUS Act into law, NCUA should move quickly on rulemaking
President Donald Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act into law Friday, creating a framework for stablecoin regulation and finalizing a win for credit union advocates who successfully kept out concerning amendments during the process. Specifically, the bill would create a regulatory framework for stablecoins with parity for credit unions and allow a credit union service organization to serve as an appropriate subsidiary entity to issue stablecoins.
America’s Credit Unions President/CEO Jim Nussle called the bill “a significant milestone that rightfully grants credit unions who wish to provide access to payment stablecoins the full authority to issue them under the supervision of the NCUA,” after the House passed the bill Thursday.
Head of Regulatory Advocacy James Akin wrote to the NCUA Friday urging the agency to “move quickly to begin rulemaking that will permit credit unions to provide digital-asset custody in a safe and sound manner,” consistent with the bill’s one-year implementation horizon.
“Time is of the essence: banks have had additional clarity [regarding] cryptocurrency since 2021, providing them with a distinct competitive advantage,” he added. “Credit unions, limited by less expansive guidance, now risk losing members to less consumer-focused providers unless the agency swiftly authorizes direct custody, extending federal oversight, leveraging credit unions’ cooperative, prudently managed model, and ensuring members can keep digital assets with institutions they already know and trust.”
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