The National Credit Union Administration (NCUA) has proposed a new licensing framework under the GENIUS Act, allowing subsidiaries of federally insured credit unions to become federally supervised payment stablecoin issuers. This initiative aims to establish a regulatory structure for stablecoins, viewed as both a payment solution and a potential systemic risk. The proposal requires issuers to obtain a Payment Stablecoin Issuer (PPSI) license and imposes investment and lending restrictions on federally insured credit unions related to PPSIs. The draft emphasizes that stablecoin issuance must occur through separately supervised subsidiaries, not directly by insured depository institutions. A notable feature is the 120-day deadline for the NCUA to approve or deny applications, with automatic approval if no decision is made within this period. Stakeholders have a 60-day window to comment on the proposal, which is seen as a cautious step towards integrating digital assets into traditional financial systems while maintaining regulatory oversight.