WASHINGTON — Four major banking trade groups are urging federal regulators–including NCUA–to establish clear and transparent procedures for overseeing key decisions tied to the emerging stablecoin market, warning that weak rules could create uneven standards and regulatory uncertainty.
In a joint letter dated July 29 to the Treasury Department and leaders of the Federal Reserve, FDIC, OCC and National Credit Union Administration, the American Bankers Association, Bank Policy Institute, Consumer Bankers Association and Independent Community Bankers of America called for formal rulemaking to govern the Stablecoin Certification Review Committee (SCRC), created under the Guiding and Establishing National Innovation for U.S. Stablecoins Act, known as the GENIUS Act.
The groups said the SCRC will play a central role in determining which entities can issue payment stablecoins in the United States and under what regulatory framework. Its decisions will influence whether state regulatory regimes are deemed comparable to federal standards, whether foreign issuers may operate domestically, and whether non-financial companies can enter the stablecoin market.
‘Substance, Not Housekeeping’
“The process behind that authority is substance, not housekeeping,” the associations wrote, cautioning that unclear procedures could lead to inconsistent decisions, weak administrative records and the possibility that some stablecoin issuers face lower regulatory standards than federally supervised banks.
The letter noted that while federal agencies have begun outlining substantive standards under the law, there are currently no formal rules governing how the SCRC will operate, including how applications are submitted, reviewed or decided. The groups urged regulators to adopt procedures consistent with federal transparency and governance laws, including the Administrative Procedure Act and Freedom of Information Act.
Recommendations Offered
Among the recommendations: defined timelines for review, standardized documentation requirements, public notice-and-comment periods, published decisions with explanations, and clear voting and recusal rules. The associations also said SCRC determinations should be subject to judicial review.
The groups further called for mandatory consultation with the Office of the Comptroller of the Currency and the National Credit Union Administration, noting both agencies play key roles in supervising institutions affected by stablecoin rules but are not members of the SCRC.
In addition, the letter urged regulators to address how decisions will be handled as the broader regulatory framework evolves, including providing grace periods and recertification processes for affected entities.
Periodic Reviews Urged
The associations also recommended periodic reviews of approvals granted to non-financial companies seeking to issue stablecoins, suggesting such approvals expire unless reaffirmed.
The groups said establishing strong procedures before the committee begins making determinations is critical to ensuring confidence in the framework and consistency across the financial system.
