Joint Trades Comment on NCUA’s GENIUS Act Stablecoin Implementation Proposed Rule - Bank Policy Institute
To Whom it May Concern:The undersigned trade associations (the “Associations”)[1]appreciate the opportunity to comment on the notice of proposed rulemaking issued by the National Credit Union Administration. . .
To Whom it May Concern:The undersigned trade associations (the “Associations”)[1]appreciate the opportunity to comment on the notice of proposed rulemaking issued by the National Credit Union Administration regarding the implementation of the Guiding and Establishing National Innovation for U. S. Stablecoins Act. [2]We also appreciate the NCUA’s careful consideration of the regulations that it is required to issue under the GENIUS Act, particularly given the numerous significant policy questions that implementation of the GENIUS Act raises. The proposal addresses a broad range of prudential and risk management requirements for permitted payment stablecoin issuers (“PPSIs”) within the NCUA’s remit, including governance, reserve management, operational resilience, compliance risk management, and Bank Secrecy Act/anti-money laundering and sanctions compliance. The way in which the GENIUS Act is implemented, and the prudential and compliance requirements that will apply to payment stablecoin issuers, could have significant effects on financial stability, credit creation, consumer protection, illicit finance risk, and the broader economy. Changes and clarifications to the proposed rule are important to help to ensure the GENIUS Act is implemented in a manner that, as Congress envisioned, appropriately balances the benefits and innovative potential of payment stablecoins with the broader economic, consumer protection, and illicit finance risks that these instruments may pose. To that end, the Associations urge the NCUA to coordinate closely with the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation to ensure that requirements for PPSIs are substantially similar and appropriately rigorous across the primary Federal payment stablecoin regulators. The OCC and FDIC have issued proposed rules to implement the requirements for PPSIs within their respective remits (and the comment periods for these proposals have now closed), while the Board has not yet issued its related proposal. [3]Such coordination is not only required by the GENIUS Act,[4]it is also critical to ensure that the PPSI regulatory framework does not create an unlevel playing field or opportunities for regulatory arbitrage, unintended policy consequences, or unworkable or incongruous requirements. The primary Federal payment stablecoin regulators therefore should repropose for comment any aspects of their respective proposals that are inconsistent or in conflict with one another to ensure that the comprehensive regulatory framework implementing the GENIUS Act is appropriately robust, transparent, and consistent across the various agencies with rule-writing authority under the statute. The primary Federal payment stablecoin regulators also should coordinate with the Treasury Department and state payment stablecoin regulators to create a robust regulatory framework that provides a level playing field for all types of payment stablecoin issuers, appropriately balances promoting innovation with preserving safety and soundness and financial stability, protects against illicit finance, and explicitly discourages regulatory arbitrage. For example, the Financial Crimes Enforcement Network and Office of Foreign Assets Control have issued proposed regulations addressing PPSI compliance obligations under the BSA and U. S. sanctions laws, which further underscores the need for close interagency coordination and a holistic implementation framework. Further, the NCUA and other primary Federal payment stablecoin regulators should clarify the application of federal consumer protection requirements to payment stablecoins, payment stablecoin transactions, and PPSIs, and should ensure that PPSIs are examined for compliance with applicable consumer protection laws. To read the full comment letter, pleaseclick here, or click on the download button below. [1]Please see Annex A for a description of the Associations. [2]NCUA, Implementing the Guiding and Establishing National Innovation for U. S. Stablecoins Act for the Issuance of Stablecoins by Entities Subject to the Jurisdiction of the National Credit Union Administration, Notice of Proposed Rulemaking, 91 Fed. Reg. 28956 (May 18, 2026). [3]Many of the Associations have separately responded to the OCC and FDIC proposals. Our recommendations in those letters apply equally to the NCUA’s proposal in many respects. We therefore encourage the NCUA to adopt our recommendations on those topics as appropriate. Seeresponses to Implementing the GENIUS Act for the Issuance of Stablecoins by Entities Subject to the Jurisdiction of the OCC (OCC Docket ID OCC-2025-0372; March 2, 2026) by BPI, CBA, and the Financial Services Forum,https://bpi. com/joint-trades-comment-on-occ-genius-act-implementation/; ABA,https://www. aba. com/advocacy/policy-analysis/genius-act-implementation-letter; and ICBA,https://www. icba. org/w/icba-comment-letter-occ-genius-implementation-npr-5. 1. 26-. See alsoresponses to GENIUS Act Requirements and Standards for FDIC-Supervised Permitted Payment Stablecoin Issuers and Insured Depository Institutions (RIN 3064–AG19; April 10, 2026) by BPI and CBA,https://bpi. com/bpi-and-cba-comment-on-fdic-stablecoin-rule-under-genius-act/; ABA,https://www. aba. com/advocacy/policy-analysis/letter-to-the-fdic-on-genius-act-requirements-and-standards; and ICBA,https://www. icba. org/w/icba-comment-letter-on-proposed-rulemaking-to-implement-genius-act-requirements. [4]12 U. S. C. § 5903(h)(2).