Dear Members:

One of the most talked about topics in the financial industry lately is stablecoin – a digital form of cash designed to maintain a stable value (usually tied to the U.S. dollar). Stablecoin aims to offer a less volatile alternative to other cryptocurrencies like Bitcoin, and its potential implications and impact on the broader financial system are being highly scrutinized by regulators and financial institutions alike. 

Whether you’ve been excitedly curious, cautiously optimistic, or just plain uncertain about the discussion surrounding stablecoin, one fact is certain: Traditional money movement continues to be fundamentally reshaped by all things digital. Business as usual has been upended, presenting us with the challenge of a thoughtful evaluation of how to move forward. 

What Legislators Have Been Doing 

While cryptocurrency and digital assets in general are not new news, a giant spotlight was recently placed on stablecoin when the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), was signed into law last July. As the first comprehensive U.S. federal law regulating stablecoins, the GENIUS Act accelerated the discussion of stablecoins’ domestic financial opportunities and compliance implications. In addition, a second bill—the Digital Asset Market Clarity Act (CLARITY Act)—aims to establish a clear regulatory framework for determining whether a digital asset is treated as a security or a commodity, and it is currently awaiting a full vote in the U.S. Senate. 

What Corporate One Has Been Doing 

For Corporate One, stablecoin and its implications for the credit union industry have been a key focus for us. We have established an internal stablecoin working group that is actively evaluating our approach to digital assets and stablecoins, including analyzing regulatory guidance, as well as potential opportunities and implications for both Corporate One and our members. 

Through our broader industry engagement, we are also listening closely to credit unions to better understand their needs and the use cases emerging across the industry. 

In addition, several Corporate One team members are actively participating in industry workgroups dedicated to stablecoins, including the Corporate Credit Union Alliance stablecoin workgroup. This effort is about ensuring credit unions can operate on equal footing with other financial institutions and market participants as digital assets and stablecoins continue to evolve. The workgroup is actively reviewing new regulations as they are released to help ensure that both credit unions and corporate credit unions can participate in this emerging technology safely, compliantly, and with confidence. 

What Credit Unions Can Do 

Because this is an evolving space, there will definitely be more to share as we continue to learn and finalize our strategic plans. In the meantime, education is one of the best ways to stay at the forefront of this topic. Below are three resources I encourage you to check out:  

• “Stablecoins for Credit Unions: Technology Basics, Policy Shifts, and Strategic Implications” with Dr. Sean Stein Smith. Originally presented during our CU Forward event earlier this year, this webinar is a valuable entry point for credit union executives, board members, and professionals who want a clear, structured overview without technical jargon or hype. Discussion areas include governance and oversight responsibilities, accounting and reporting considerations, member protection issues, and strategic decision-making in a payments environment increasingly influenced by digital dollars.
• The U.S. Faster Payments Council’s blog has numerous in-depth articles on digital assets and stablecoins, covering topics like industry use cases, emerging opportunities, and regulatory developments.
• The NCUA recently announced a proposed rule on Permitted Payment Stablecoin Issuer Standards. The proposal outlines the operational and risk management standards for entities that would be authorized by the NCUA to issue payment stablecoins. You can view the proposed rule in the Federal Register and submit comments until July 17.

I welcome your insights and perspectives as you evaluate this evolving landscape on behalf of your members. Please feel free to reach out to me directly at 614/825-9351 or [email protected] to share your thoughts. Your input is essential as we work together to navigate these changes and position credit unions for the future. 

Best,