NCUA has proposed payment stablecoin issuance standards under the GENIUS Act, outlining reserve, liquidity, custody and risk rules for issuers.
NCUA has proposed payment stablecoin issuance standards under the GENIUS Act, outlining reserve, liquidity, custody and risk rules for issuers.
The National Credit Union Administration on May 15, 2026, published a proposed rule setting operational and risk management standards for permitted payment stablecoin issuers licensed under the GENIUS Act, marking the second major rulemaking step in the federal agency’s rollout of credit-union-linked stablecoin oversight.
The Notice of Proposed Rulemaking was published in the Federal Register on May 18, 2026 as document 2026-09915 at 91 FR 28956. The public comment period closes on July 17, 2026.
The proposal creates a dedicated standards section in proposed 12 CFR part 706, covering reserves, liquidity, custody, cybersecurity, anti-money laundering compliance, and disclosure requirements for NCUA-licensed permitted payment stablecoin issuers.
NCUA serves as the primary federal stablecoin regulator for issuers that are subsidiaries of federally insured credit unions. The May 15 announcement described the rule as implementing the GENIUS Act for stablecoin issuance by entities subject to NCUA jurisdiction.
The GENIUS Act, signed on July 18, 2025, created the federal framework for permitted payment stablecoin issuers. NCUA first proposed its licensing and investment framework on February 11, 2026, and this May standards proposal builds on that earlier step.
The stablecoin sector currently carries a market capitalization of roughly $293 billion, underscoring the scale of the market that federal agencies are now racing to regulate. Recent enforcement actions in adjacent areas of crypto, including cases where the DOJ traced crypto proceeds into physical assets, highlight why regulators view clear operational standards as urgent.
The proposed reserve framework sets specific thresholds that go well beyond general guidance. An NCUA-licensed issuer would need at least 10 percent of reserve assets held in on-demand deposits or Federal Reserve balances.
At least 30 percent of reserve assets must be available within five business days. The rule also caps exposure to any single eligible financial institution at 40 percent and limits the weighted average reserve maturity to no more than 20 days.
For larger issuers with outstanding issuance value of $25 billion or more, the proposal would require at least 0.5 percent of reserve assets, capped at $500 million, in fully insured deposits or share accounts. These thresholds represent a level of detail that most competitor coverage has not yet surfaced.
The supplemental rule also addresses custody, cybersecurity, AML compliance, and disclosure standards, according to independent reporting from CU Today. The breadth of the proposal reflects lessons learned from stablecoin-adjacent fraud cases, such as the recent USDT-linked scam in Kenya that exposed gaps in issuer transparency.
NCUA Chairman Kyle Hauptman framed the rule as a parity measure with banking regulators.
“Stakeholders will see that we worked diligently to align the standards for NCUA-licensed PPSIs with the standards proposed for bank subsidiaries.”
Kyle Hauptman, NCUA Chairman
That alignment matters because it signals that credit-union-subsidiary issuers will not face a lighter or heavier regulatory burden than bank-subsidiary issuers under the same federal law. The approach could shape how credit unions evaluate the business case for entering digital asset markets alongside traditional financial institutions.
The stablecoin market’s largest asset, USDT, traded at $0.999 with a market capitalization near $189.7 billion at press time, illustrating the scale that any new issuer would be entering. Meanwhile, the broader crypto market sentiment sits at a Fear & Greed reading of 28, labeled “Fear.”
Comments on the proposed rule are due by July 17, 2026. Credit unions and prospective stablecoin issuers weighing whether to participate in public comment can access the full proposed rule text through the Federal Register listing.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
Quick access to the site tools and map-driven utility pages.
Follow the core desks readers use most across Bitcoin, altcoins, mining, events, and sponsored coverage.
© 2026 BitcoinInfoNews.com. All rights reserved.
Independent Bitcoin and crypto coverage with public trust, policy, and newsroom pages available sitewide.