The US Credit Union Supervisory Authority Proposes a Stablecoin Licensing System

The National Credit Union Administration (NCUA) has proposed a licensing system (PPSI) for stablecoin issuance by credit unions under its jurisdiction, Cointelegraph reported. The proposal includes the following: 1) credit unions must obtain a license (PPSI) from the NCUA to issue stablecoins; 2) there will be no discrimination in the issuance of stablecoins based on public blockchains; 3) the NCUA must decide whether to approve a license application within 120 days; and 4) stablecoin issuance will only be permitted through subsidiaries, not credit unions. This document is in the public comment stage, and specific details will be finalized through future discussions. As of mid-2019, the NCUA oversees approximately 4,000 credit unions with $2.38 trillion in assets and 144 million members.