US regulators unveil application process for 'stablecoin license'… "Public blockchains also eligible"

The National Credit Union Administration (NCUA) has disclosed a streamlined application process for issuing stablecoin licenses.

According to Cointelegraph on the 12th (local time), the NCUA announced the previous day (the 11th) a proposed rulemaking to approve stablecoin issuers. The NCUA said it plans to publish the proposal in the Federal Register so stakeholders can submit comments, adding that the comment period ends on April 13.

Under the proposal, stablecoin issuers would be required to obtain the NCUA’s Payment Stablecoin Issuer (PPSI) license. Credit unions under the NCUA would be prohibited from investing in or lending to stablecoin issuers that do not hold a PPSI license. Cointelegraph reported that “this draft focuses on licensing and investment limits.”

The NCUA also cannot reject an application solely because a stablecoin was issued on a public blockchain. Once an application is received, the NCUA must state its intent to approve or deny it within 120 days of the filing date. If the NCUA takes no action within that period, the application is deemed automatically approved.