NCUA Moves GENIUS Act Rulemaking to OMB, Kicking Off Implementation Process

NCUA has sent its proposed GENIUS Act rule to the Office of Management and Budget (OMB), starting the formal process that must occur before the proposal is released for public comment and finalized.​

What just happened

• The National Credit Union Administration submitted a GENIUS Act implementing rulemaking package to OMB for review.​

• The text of the proposal is not yet public; it will be published in the Federal Register only after OMB completes its review.​

What the GENIUS Act does

• The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act creates a federal regulatory framework for “payment stablecoins” and their issuers.​

• It designates the NCUA as a primary federal payment stablecoin regulator for federally insured credit unions (FICUs) and their subsidiaries, including those that become permitted payment stablecoin issuers.​

Timelines and deadlines

• The GENIUS Act was enacted on July 18, 2025, and generally becomes effective the earlier of January 18, 2027, or 120 days after all primary federal payment stablecoin regulators issue final regulations.​

• Regulators, including NCUA, must finalize implementing regulations by July 18, 2026, one year after enactment, so the OMB submission marks the start of a compressed rulemaking schedule.​

What happens next procedurally

• After OMB review, the proposed NCUA rule will be published in the Federal Register, with a defined public comment period (typically around 60 days, consistent with other GENIUS Act NPRMs).​

• Following the comment period, NCUA will revise and adopt a final rule, which must align with GENIUS Act statutory requirements and the overall interagency framework for payment stablecoin regulation.​

Why this matters for credit unions

• The NCUA rule is expected to set conditions under which federally insured credit unions can issue or custody payment stablecoins, including risk management, capital, liquidity, governance, and BSA/AML expectations.​

• This rulemaking provides the regulatory certainty needed for credit unions that want to participate in the stablecoin market while maintaining prudential oversight and consumer protections.​