WASHINGTON--Stablecoins and digital assets are now entering the financial services industry due to the GENIUS Act, with credit unions well-positioned to provide trusted, safe and consumer friendly services to their members, America's Credit Unions explained.
Responding to an advanced notice of proposed rulemaking (ANPR) issued by the Treasury Department, America’s Credit Unions underscored credit unions’ ability to effectively provide these services while emphasizing the need for clear regulatory guidelines and coordination between Treasury and the NCUA.
Some credit unions are already building the infrastructure needed to launch and hold stablecoins, but others are waiting for greater regulatory certainty before moving forward. In a letter sent Tuesday, America’s Credit Unions Director of Innovation and Technology Andrew Morris outlined specific recommendations for the Treasury Department, including:
- Work closely with the NCUA to provide credit unions with ample clarity surrounding statutorily authorized activities and to minimize the risk of regulatory arbitrage
- Issue guidance in coordination with the NCUA that describes the extent to which stablecoin reserves may be used by a credit union
- Provide detailed technical and operational standards for AML and sanctions compliance specific to stablecoins
- Offer further clarification of the terms “pay,” “interest,” “yield,” and “solely” under section 4(a)(11) of the GENIUS Act to ensure that Congress’ intended prohibition on interest bearing features is effectively implemented
"While industry engagement with stablecoins is still at an early stage, creating a safe, tailored, and competitively fair regulatory framework is essential to supporting credit unions in their ability to serve members," ACU said.