The National Credit Union Administration should pause setting up a process through which credit unions can seek approval to issue stablecoins through a subsidiary until the agency has proposed other regulatory safeguards for stablecoin issuers, the American Bankers Association said today in a letter to the agency.
As part of its implementation of the Genius Act, the NCUA recently proposed rulemaking that mirrors an FDIC proposal from late last year. ABA said it has many of the same concerns with the NCUA’s rulemaking as with the earlier FDIC proposal, in that the agency is moving ahead without first proposing rules on crucial regulatory aspects such as capital, liquidity, risk management and other prudential requirements. The FDIC has since issued a proposal addressing these issues.
ABA suggested the NCUA pause rulemaking until those other regulatory requirements are put forward for review, which would allow for “holistic consideration.”
ABA also urged the NCUA to promulgate equivalent regulatory requirements and supervisory expectations for similar business activities, to establish transparent standards for granting regulatory “safe harbor” to pending stablecoin applications, and to coordinate with banking regulators to establish a unified timeline for when Genius Act regulations take effect.
