The post Stablecoin Issuance Gets Federal Guardrails Under New Proposal appeared on BitcoinEthereumNews.com.

Regulations The U.S. National Credit Union Administration (NCUA) has issued its first proposed rules under the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, outlining a federal licensing pathway for payment stablecoin issuers affiliated with federally insured credit unions. Key Takeaways NCUA proposes a new Permitted Payment Stablecoin Issuer (PPSI) license for subsidiaries of federally insured credit unions. Credit unions would be prohibited from issuing stablecoins directly or engaging with unlicensed issuers. The framework introduces a federal supervisory pathway aligned with the GENIUS Act’s implementation timeline. The move marks a structural step in the post-GENIUS Act regulatory rollout, signaling how U.S. authorities intend to integrate stablecoin issuance into the federally supervised financial system without allowing direct balance-sheet exposure for insured credit unions. Licensing Structure for Credit Union-Affiliated Stablecoin Activity Under the proposal, subsidiaries of federally insured credit unions (FICUs) would be required to obtain designation as an NCUA Permitted Payment Stablecoin Issuer (PPSI) before issuing payment stablecoins. Direct issuance by the credit unions themselves would not be permitted. Instead, issuance activity would need to occur through separately supervised entities, such as credit union service organizations or comparable subsidiaries. Today, NCUA moved forward with its plans to implement the GENIUS Act. The agency announced a proposed rule outlining the framework for credit union subsidiaries seeking approval to become a permitted payment stablecoin issuer. To learn more, visit: https://t.co/iDYzQ3zPxF — The NCUA (@TheNCUA) February 11, 2026 The proposal also restricts capital relationships: federally insured credit unions would be barred from investing in or extending credit to any payment stablecoin issuer that does not hold the required PPSI license. This effectively creates a closed supervisory perimeter in which only NCUA-approved entities can interact with insured institutions in stablecoin-related activities. Application Standards and Supervisory Timelines Subsidiaries seeking PPSI status would need to demonstrate…

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Filed under: News - @ February 12, 2026 7:26 pm