U.S. Authorities Move Toward Official Approval of Stablecoin Issuance, Regulatory Barriers Set to Disappear

▲ Stablecoin

U.S. financial authorities have officially unveiled a draft licensing framework permitting the National Credit Union Administration (NCUA) to authorize the issuance of stablecoins, marking a historic step toward integrating digital assets into the regulated financial system.

According to cryptocurrency media outlet U.Today on February 12 (local time), the NCUA announced a proposal to establish a licensing and supervisory framework for stablecoin issuers as the first step in implementing the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS). Rather than allowing individual credit unions to issue stablecoins directly, the measure requires them to conduct such activities through separately licensed subsidiaries, focusing on ensuring both asset safety and transparency.

Under the new rules, any institution seeking to issue stablecoins must obtain a Permitted Payment Stablecoin Issuer (PPSI) license. Federal credit unions must establish a subsidiary in the form of a Credit Union Service Organization (CUSO), while state-chartered credit unions must likewise enter the market through a similar independent legal entity. This structure effectively creates a firewall to prevent risks associated with digital asset issuance from directly affecting member deposits or the financial health of the credit union.

NCUA Chairman Kyle Hauptman described the proposal as “a significant first step” toward realizing the GENIUS Act, emphasizing that it would create a level playing field to ensure credit unions do not fall behind other financial institutions technologically or institutionally. Hauptman also underscored his commitment to expediting regulatory preparations to meet the congressional deadline of July 18.

Licensed issuers will be required to maintain a 1:1 reserve of safe assets backing every issued stablecoin and must guarantee clear redemption rights for users. They will also need to implement robust anti-money laundering programs and cybersecurity systems. The NCUA plans to decide on applications within 120 days of submission. These stringent operational standards are expected to serve as minimum safeguards to prevent a recurrence of past stablecoin collapses and to restore market confidence.

Financial industry observers believe the new framework could serve as a decisive turning point for stablecoins, enabling them to move beyond speculative instruments and become part of the real economy’s payment infrastructure. As regulated financial institutions begin to participate more actively, positive spillover effects are anticipated in major cryptocurrency markets, including Bitcoin (BTC) and XRP. The draft proposal will undergo a 60-day public comment period before finalization, and global financial regulators are expected to look to the U.S. case as a potential regulatory standard.

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