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On February 12, 2026, the National Credit Union Administration (NCUA) published a proposed rule (the Proposed Rule) pursuant to the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act or GENIUS). GENIUS authorizes the NCUA to license, regulate, and supervise permitted payment stablecoin issuers (PPSIs) that are subsidiaries of federally insured credit unions (FICUs), and requires that the NCUA issue implementing regulations by July 18, 2026.
In the Proposed Rule, the NCUA details an application process for potential PPSIs to submit required applications for licensure with their parent companies. NCUA invites comment on issues such as the threshold of ownership shares at which a FICU may be considered a parent company or principal shareholder of an applicant, thereby obliging the FICU to participate in the licensing process. Other topics considered in the Proposed Rule include the approach that the NCUA and other PPSI regulators should take to PPSIs that may be subsidiaries of multiple types of insured depository institutions, and whether the NCUA should provide conditional approval of applications.
This is an early but important step in the GENIUS implementation process. Comments on the proposed rule are due by April 13, 2026; firms contemplating a PPSI application should pay close attention to the development of the application process, which will help ensure that they have a complete understanding of the regulators' approach to licensing these new entities. Steptoe's Financial Innovation & Regulation group is ready to assist if you are interested in providing input to this rulemaking process or have any other questions about GENIUS implementation.
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