The National Credit Union Administration (NCUA) has proposed a new rule that would permit federal credit unions to issue and hold stablecoins, marking a significant expansion of their digital asset activities. The proposal, announced on May 14, 2026, would allow credit unions to participate in stablecoin arrangements as part of their incidental powers, provided they meet specific risk management and compliance requirements.
Under the proposed rule, credit unions would be allowed to issue stablecoins backed by U.S. dollars or other fiat currencies, and to hold stablecoins as part of their asset portfolio. The NCUA emphasized that any stablecoin activities must be conducted in a safe and sound manner, with appropriate safeguards to protect member deposits and ensure liquidity. The rule also requires credit unions to have robust policies for anti-money laundering and countering the financing of terrorism (AML/CFT).
The proposal is part of a broader effort by federal regulators to provide clarity for digital asset activities within the financial system. The NCUA stated that the rule aims to foster innovation while maintaining consumer protection and financial stability. Public comments on the proposed rule are due by July 13, 2026.
Industry groups have reacted positively, noting that the rule could give credit unions a competitive edge in the evolving payments landscape. However, some consumer advocates have raised concerns about the risks associated with stablecoins, including potential runs and operational challenges. The NCUA has indicated it will closely monitor the implementation of the rule if finalized.
