WASHINGTON–Credit unions looking to understand how payment stablecoins could affect their operations—and what the new GENIUS Act means for the industry—have a new resource from America’s Credit Unions that outlines the law, the regulatory framework and key issues institutions should be watching.
The GENIUS Act was signed into law in July 2025 and creates a regulatory framework for stablecoins. Multiple federal agencies, including the NCUA, are developing implementing regulations, though none have been finalized yet. The GENIUS Act takes effect on either Jan. 18, 2027, or 120 days after the primary federal payment stablecoin regulators issue final rules, whichever is earlier.
Under NCUA’s proposed rules, a federally insured credit union may not issue a payment stablecoin directly. Issuance must occur through an NCUA-licensed subsidiary. Federally insured credit unions would be limited under the NCUA proposal to investing only in permitted payment stablecoin issuers (PPSIs) licensed by the NCUA, ACU reminded.
Payment stablecoins may compete with credit union share accounts for member deposits, which has potential consequences for liquidity, funding cost, and lending capacity.
The detailed primer goes into how the stablecoin process works, the GENIUS Act framework, and areas of focus and concern for credit unions.
