BitMine bought roughly $83 million in ETH this week, even as Ethereum struggles to reclaim $2,000-mark.

Ethereum has remained volatile since October, while the sell-off intensified over the last month. Fundstrat head of research Tom Lee said investor frustration around the leading altcoin’s recent weakness overlooks a long and consistent historical pattern of sharp declines followed by equally rapid recoveries.

In fact, he believes that the bottom is near.

Ethereum Near the Bottom?

While speaking at a conference in Hong Kong this week, Lee said that since 2018, Ethereum has experienced drops of more than 50% on eight different drawdowns, including a steep 64% fall between January and March last year. In every one of those instances, ETH formed a “V-shaped bottom,” recovering fully and doing so at roughly the same pace as its decline. From his perspective, this track record indicates that the current drawdown does not represent any change in Ethereum’s outlook, and he expects another V-shaped bottom to emerge following the latest sell-off.

Lee also cited BitMine market analyst Tom DeMark’s assessment, who believes Ethereum may need to revisit the $1,890 level to form a “perfected bottom.” Lee added that, based on BitMine’s assessment, ETH appears to be very close to such a bottom, as he drew parallels to previous downturns in late 2018, late 2022, and April 2025.

While Lee refrained from pinpointing the exact low, he argued that the magnitude of the decline itself is more important, and that investors should be thinking in terms of opportunity rather than offloading their stash.

“If you have already seen a decline, you should be thinking about opportunities here instead of selling.”

BitMine Is Buying

His comments came as Ether prices fell to $1,760 on February 6, as it approached the 2025 low of almost $1,400. So far, ETH has continued to struggle to reclaim the $2,000 level after a more than 36% drop over the past 30 days. As weakness in the market continues, BitMine, the ETH-focused treasury firm chaired by Lee, purchased roughly $83 million worth of ETH this week.

It executed two large buys of 20,000 ETH each via institutional platforms BitGo and FalconX, even as its existing holdings remained significantly underwater.

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Meanwhile, the drawdown has already led to large-scale portfolio adjustments. For instance, Trend Research, a trading firm led by Liquid Capital founder Jack Yi, fully exited its Ethereum positions and closed what was once Asia’s largest ETH long. The firm had built roughly $2.1 billion in leveraged ETH exposure but ultimately realized losses of about $869 million after unwinding its positions despite Yi reiterating a bullish long-term outlook just days earlier.

Investment bank Standard Chartered lowered its short-term and full-year price forecasts for major cryptocurrencies, citing continued downside risk as exchange-traded fund (ETF) outflows and a challenging macro backdrop pressure the market.

The bank now expects bitcoin BTC$66,988.52 to fall to around $50,000 in the coming months, with ether ETH$1,961.10 potentially bottoming near $1,400.

The world’s largest cryptocurrency was trading around $67,900 at publication time. Ether, the second-largest, was trading around $1,980.

Geoff Kendrick, Standard Chartered’s head of digital assets research, said the selloff in recent weeks could extend as ETF investors, many sitting on losses, are more likely to reduce exposure than “buy the dip.”

Once prices establish a bottom, Kendrick said, he expects a recovery through the rest of 2026. The analyst reduced his year-end target for bitcoin to $100,000 from $150,000, ether to $4,000 from $7,500, solana SOL$80.60 to $135 from $250, BNB Chain BNB$610.47 to $1,050 from $1,755 and AVAX$8.7922 to $18 from $100.

The crypto market has weakened sharply in early 2026, with major assets like bitcoin sliding significantly from late-2025 highs and the total market cap down sharply over recent weeks. Bitcoin has dropped almost 23% since the start of the year.

The downturn has been marked by heightened volatility, large liquidations of leveraged positions and broad risk-off sentiment, which has seen crypto correlate more closely with weakening equity markets.

Macro pressures such as concerns about global growth and interest-rate outlooks have pushed investors toward traditional havens like gold, while stalled regulatory clarity, particularly in the U.S., and liquidity strains at some institutions have weighed on confidence. Combined, these forces have led to reduced trading revenues for crypto-exposed firms and bearish sentiment across many tokens.

Holdings of bitcoin ETFs have declined by nearly 100,000 BTC from their October 2025 peak, according to Kendrick. The average ETF purchase price is around $90,000, leaving many investors with unrealized losses of roughly 25%.

Macro conditions are also weighing on sentiment. Kendrick noted that while U.S. economic data show signs of softening, markets expect no interest-rate cuts before Kevin Warsh’s first Federal Open Market Committee meeting as Federal Reserve chair in mid-June, limiting near-term support for risk assets.

Despite the expected capitulation, the bank said the current drawdown is less severe than previous cycles. At its worst point in early February, bitcoin was down about 50% from its October 2025 all-time high, and roughly half of supply remained in profit, declines that are sharp but not as extreme as in prior downturns.

Crucially, this cycle has not seen the collapse of major crypto platforms, unlike 2022’s failures of Terra/Luna and FTX. Kendrick said that suggests the asset class is maturing and more resilient.

The analyst left his longer-term projections unchanged, maintaining end-2030 targets of $500,000 for bitcoin and $40,000 for ether, arguing that usage trends and structural drivers remain intact.

The analyst previously reduced his bullish bitcoin forecasts in December.

Read more: Standard Chartered Throws in the Towel on Bullish Bitcoin Forecast

VICTORIA, Seychelles, February 12, 2026 — Global crypto trading platform BYDFi participated as a sponsor of Solana Accelerate APAC at Consensus Hong Kong 2026, held alongside Consensus Hong Kong at the Hong Kong Convention and Exhibition Centre. The combined gathering brought founders, institutions, policymakers, and builders together, highlighting Hong Kong’s role as a leading regional hub and a key meeting point for Web3 and blockchain innovation.

BYDFi at Solana Accelerate APAC in Hong Kong

Solana Accelerate APAC convened the Solana community and broader crypto ecosystem around the future of internet capital markets and onchain innovation, set against the backdrop of a global financial center known for clear frameworks and active market participation. BYDFi’s participation marked a first deeper step into Solana-focused programming and community dialogue. Discussions also reflected ongoing market focus on crypto regulation Hong Kong and crypto licensing Hong Kong.

During the event, the BYDFi team was on site to meet attendees, share product context, and distribute limited merchandise, including Newcastle United co-branded items as part of BYDFi’s ongoing brand collaboration with the club. The booth saw strong foot traffic throughout the day.

What BYDFi Is Sharing in Hong Kong

BYDFi used the event to share how a CEX + DEX dual-engine approach can support clearer participation across venues and workflows, particularly for users who want both centralized liquidity and onchain discovery in one connected experience. MoonX, BYDFi’s onchain trading engine, supports Solana and is designed to help users track and navigate fast moving onchain markets with a workflow built for speed, signal clarity, and execution efficiency.

In parallel, BYDFi highlighted reliability foundations that support long term trust in volatile markets, with an emphasis on operational safeguards and service responsiveness. These include over 1:1 Proof of Reserves with periodic public reporting, an 800 BTC Protection Fund, and 24/7 multilingual customer support with timely responses across official channels, including social media.

Why This Matters for BYDFi and the Solana Ecosystem

Solana Accelerate APAC brought ecosystem builders and market infrastructure discussions into the same orbit. BYDFi’s participation centered on two goals: listening closely to Solana-native users and teams, and exploring deeper collaboration opportunities that can strengthen product coverage, user experience, and market access as the crypto market continues to mature.

About BYDFi

Founded in 2020, BYDFi now serves over 1 million users across 190+ countries and regions. BYDFi is Newcastle United’s Exclusive Official Crypto Exchange Partner. Recognized by Forbes as one of the Best Crypto Exchanges In Canada For 2026, BYDFi offers intuitive, low-fee trading across Spot and Perpetual Contracts to Copy Trading, and Automated Crypto Trading Bots, empowering both new and experienced traders to navigate digital assets with confidence.

BYDFi is dedicated to delivering a world-class crypto trading experience for every user.

BUIDL Your Dream Finance.

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Here’s what signals that XRP’s bears might step back soon.

The latest market downtrend has not been kind to Ripple’s XRP, whose price slipped by nearly 25% over the past two weeks.

However, some key factors suggest the bulls may soon regain control.

Rally on the Way?

Last week, Ripple’s cross-border token fell to almost $1.10, its lowest point since November 2024. In the following days, it recovered from the sharp decline and currently trades at roughly $1.40, still well below the levels seen in previous months.

Certain elements, including the XRP exchange reserves, suggest that a further revival could be on the horizon. According to CryptoQuant’s data, the amount of coins stored on Binance recently fell to approximately 2.55 billion, the lowest mark since the beginning of 2024. As of this writing, the reserves on that particular platform stand at around 2.57 billion XRP, or quite close to the local bottom.

This trend indicates that investors have been shifting from centralized trading venues to self-custody methods, which in turn reduces immediate selling pressure.

The spot XRP ETFs are the next bullish factor on the list. Recall that the first such product in the USA, which has 100% exposure to the asset, saw the light of day in November 2025. It was introduced by Canary Capital, whereas shortly after, Bitwise, Franklin Templeton, 21Shares, and Grayscale did the same.

The investment vehicles have seen solid demand, with total cumulative net inflows surpassing $1.23 billion. The last negative daily netflow occurred on January 29, meaning institutional investor appetite remains high.

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Some technical setups also hint that XRP could make a decisive move to the upside soon. X user Niels spotted the formation of an “inverse head and shoulder pattern” on the token’s price chart. The configuration consists of three bottoms, with the middle being the lowest, and a “neckline” that connects the highs between the dips.

Analysts believe a breakout above the “neckline” could fuel a substantial pump. Niels, for instance, claimed that a jump above the $1.44 level might be that spark.

Something for the Bears

It is important to note that the environment of the broader crypto market remains predominantly bearish, so a renewed downtrend for many leading digital assets (including XRP) in the near future is not out of the question.

XRP’s Relative Strength Index (RSI) also suggests that the bulls may have to take another blow soon. The technical analysis tool measures the speed and magnitude of recent price changes and is often used by traders to identify potential reversal points.

It ranges from 0 to 100, and readings above 70 signal that the asset is overbought and due for a pullback. In contrast, anything below 30 is considered a buying opportunity. Data shows that XRP’s RSI currently stands at around 72.

• Uniswap (UNI) price surged on BUIDL news but quickly pulled back as momentum faded.
• Institutional access boosts Uniswap’s profile but remains tightly restricted.
• Whale activity before the news raised insider trading concerns.

Uniswap’s UNI token experienced a sharp price surge after the announcement of the listing of BlackRock’s BUIDL token on the protocol.

UNI briefly rallied toward the $4.50 region before losing momentum and pulling back, reflecting a mix of excitement and caution among traders.

Alongside the optimism, concerns have emerged that could limit sustained upside for the UNI price.

BlackRock’s BUIDL listing on Uniswap brings institutional credibility

BlackRock’s BUIDL token is a treasury-backed, tokenised money market fund designed for institutional investors.

By enabling BUIDL to be traded through Uniswap’s infrastructure, the protocol has taken a significant step toward hosting real-world assets on-chain.

This integration relies on a request-for-quote model rather than open liquidity pools, reflecting the compliance needs of large financial institutions.

Only whitelisted market makers and qualified investors are allowed to participate in these trades.

As a result, the integration showcases Uniswap as an execution and settlement layer rather than a fully permissionless marketplace in this case.

For UNI holders, the announcement strengthened the narrative that Uniswap can benefit from institutional adoption without changing its core architecture.

The market responded quickly, pushing UNI higher as traders priced in potential long-term fee growth and relevance.

UNI price surge followed by a pullback

UNI’s rapid surge was followed by an equally notable pullback, suggesting many traders treated the rally as a short-term opportunity rather than a structural shift in valuation.

Volume spiked sharply during the surge, indicating aggressive positioning from both buyers and sellers.

Then, soon after, selling pressure increased as the price failed to hold above key resistance levels.

The pullback has returned UNI closer to its recent trading range, despite the significance of the announcement.

This behaviour reflects a market that is still cautious about translating institutional experiments into lasting token value.

It also highlights that Uniswap’s fundamentals, while improving, remain exposed to broader crypto market sentiment.

Insider trading concerns

Adding complexity to the situation were reports of large UNI movements shortly before the BlackRock-related news became public.

A long-dormant whale wallet reportedly moved millions of UNI tokens after years of inactivity.

Shortly before #BlackRock announced plans to buy an undisclosed amount of #Uniswap‘s $UNI token, we noticed something interesting.

A $UNI whale wallet (0x9c98) that had been inactive for 4 years moved 4.39M $UNI($14.75M) to a new wallet (0xf129).https://t.co/fZabEVYlcn… pic.twitter.com/JfFbPP67Da

— Lookonchain (@lookonchain) February 11, 2026

The timing of this transfer raised speculation that some market participants may have had early knowledge of the announcement.

While no evidence confirms wrongdoing, the optics alone were enough to spark debate.

Insider trading concerns can undermine confidence, especially when institutional names are involved.

For regulators and institutional investors, perception matters almost as much as facts.

Any lingering doubts about fairness or information asymmetry could limit follow-through buying.

This risk sits alongside the structural limitation that BUIDL access remains restricted to institutions.

Retail traders may benefit indirectly, but they are not participants in the actual BUIDL market.

Uniswap price forecast

UNI is now trading well below its recent peak, placing technical levels back at the centre of attention.

The first key support zone lies around the $3.20 to $3.30 area, where buyers previously stepped in.

A sustained break below this range could expose UNI to deeper downside toward the psychological $3.00 level.

Below that, the $2.80 to $2.90 region stands out as a major support that aligns with prior consolidation.

On the upside, traders will watch the $3.80 to $4.00 zone as near-term resistance.

A clean move above $4.00 would signal renewed bullish momentum and open the door for a retest of $4.50.

Failure to reclaim these levels would suggest the BlackRock-driven rally has fully cooled.

For now, UNI sits at a crossroads where strong narratives compete with technical weakness.

Ethereum co-founder Vitalik Buterin has condemned Russia’s invasion of Ukraine as “criminal aggression.” He advocates applying crypto-inspired governance principles to transform Russia’s political system.

His remarks, published ahead of the fourth anniversary of the invasion on February 24, 2026, link blockchain concepts to the long-term security of Europe and Ukraine.

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Vitalik Buterin Condemns Aggression Amid Support for Ukraine

The Russo-Canadian innovator directly rejected narratives that frame the conflict as morally ambiguous. He emphasized that Russia’s invasion of Ukraine cannot be justified.

Drawing on his Russian heritage and Canadian upbringing, he highlighted the dramatic contrast between:

• Ukraine’s institutional improvements over the past decade and
• Russia’s escalating repression, imperial ambitions, and military aggression.

“Ukraine needs a lot of help — to continue defending itself and to minimize human suffering from attacks on residential buildings, the energy system, etc.,” Buterin wrote, urging sustained international support to protect civilians and maintain Ukraine’s defense capabilities.

Buterin also criticized Western narratives that downplay Russian responsibility, asserting that Moscow’s leadership currently lacks incentive to pursue peace.

Based on this, he suggests that only continued military and economic pressure could compel meaningful negotiations.

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Applying Crypto Principles to Political Reform

Drawing parallels from his experience in Ethereum and blockchain governance, Buterin proposed that long-term reform in Russia could benefit from:

• Decentralized governance
• Quadratic voting, and
• Digital democracy

These mechanisms, already explored in crypto ecosystems, are designed to spread power, prevent authoritarian consolidation, and allow citizens to influence decisions proportionally.

“The goal is to build a country that, when the objective is improving people’s lives, will be maximally strong, but when the goal is oppressing minorities or aggression against neighbors, will be maximally uncoordinated and weak,” he explained.

Buterin emphasized that decentralization is not merely a conceptual exercise; it could guide real-world political transitions.

Systems like https://pol.is, which enable large-scale consensus-building and public deliberation, could help identify shared priorities among citizens and inform policy without relying solely on traditional hierarchical structures.

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The remarks come only weeks after internet providers began blocking access at the network level, barring several crypto news sites on Russian home internet connections.

Vision for a “Beautiful Russia of the Future”

Nonetheless, beyond immediate conflict resolution, Buterin argued that European and Ukrainian security depends on fundamentally transforming Russia.

He envisioned a state in which internal governance structures prioritize public welfare and economic prosperity over military aggression, thereby reducing the likelihood of future conflicts.

Buterin stressed that this transformation requires new leadership and novel ideas within Russia’s political opposition.

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Drawing lessons from crypto, he noted that entrenched systems rarely yield progress without fresh strategies, experimentation, and inclusive participation. He framed this approach as a two-step process:

• First, Ukraine must receive every possible form of support to weaken the Russian military and compel a ceasefire.
• Second, after Putin, the focus should shift to empowering moderate factions in Russia willing to adopt reform, peace, and decentralized governance principles.

Buterin’s proposal reflects a growing intersection between technological governance models and international politics.

While blockchain-inspired methods have been tested primarily in digital networks, applying these concepts to national governance represents a radical, untested approach.

Nonetheless, the Ethereum co-founder’s perspective offers a novel lens on conflict resolution and state-building. It suggests that beyond diplomacy or military pressure, systemic innovation may be essential for lasting peace.

Hong Kong — Institutional crypto participation across Asia is moving into a more mature phase as regulators establish clear frameworks for stablecoins and exchange-traded funds. Large players now favor market-neutral strategies and regulated vehicles over direct, directional exposure to digital assets.

Vicky Wang, president of Amber Premium, highlighted this shift during a panel discussion at Consensus Hong Kong. She noted that while transaction volumes reached $2.3 trillion by mid-2025, capital allocation remains cautious. “The institutional participation in Asia, I would say it’s real, but at the same time it’s very cautious,” Wang said. She observed that institutions prefer “market neutral and yield strategy” over aggressive directional bets.

Fakhul Miah, managing director of GoMining Institutional, pointed to the recent approval of ETFs and perpetuals in Hong Kong as a major driver for liquidity. He noted that even traditional “mega banks” in Japan are now working on stablecoin solutions. These developments allow traditional capital to enter the space through familiar structures. Miah explained that institutions must pass through “risk committees and operational governance structures,” which historically did not exist for onchain products.

The focus for many Asian institutions has shifted toward real-world asset tokenization and stablecoin settlement. Wendy Sun, chief brand officer at Matrixport, noted that while these topics are popular, there remains a gap in internal treasury adoption. “For the internal treasury-based stablecoin, we are still waiting for the standard to come out,” Sun said. She argued that the behavior of these institutions is becoming more “rule-based and scheduled” rather than pursuing short-term gains.

Wang concluded that the industry’s future rests on the convergence of artificial intelligence and digital assets. “In the future, digital assets would not be a just alternative asset class or an alternative financial system,” Wang said. “It will be the financial layer of the AI.”

TLDR

• Russia is exploring ways to aid Cuba, which is facing a severe fuel shortage.
• Russia emphasizes “constructive dialogue” with the U.S. over the situation in Cuba.
• The U.S. threatens sanctions on countries supplying oil to Cuba, escalating tensions.
• U.S. tariff revenue has surged by over 300%, reaching $124 billion for the year.
• The U.S. Supreme Court’s upcoming ruling on tariffs could impact the country’s fiscal health.

On Thursday, the Kremlin expressed its willingness to provide assistance to Cuba, which is grappling with a severe fuel shortage. In response to the growing crisis, Kremlin spokesperson Dmitry Peskov dismissed U.S. President Donald Trump’s tariff threats, stating that Moscow had limited trade with Cuba. Tensions continue to rise, as the U.S. threatens sanctions on any country supplying oil to the Caribbean island.

Kremlin Addresses Oil Supply for Cuba

The Kremlin confirmed that it was exploring options to aid Cuba with its escalating energy crisis. According to a local media report, Peskov acknowledged the strained relationship but assured that the Kremlin would not seek to escalate tensions.

Peskov emphasized the need for constructive dialogue between Russia and the U.S. regarding the situation. Cuba, already struggling under a 60-year U.S. trade embargo, is facing a deepening economic crisis exacerbated by a fuel shortage. Moscow’s support could play a pivotal role in alleviating some of Cuba’s immediate challenges.

Despite this, Russia has refrained from making any public commitments, citing the sensitivity of the matter. Peskov further added that such issues must be discussed discreetly due to their delicate nature. As Cuba’s energy crisis worsens, international airlines, including Air Canada, have already canceled flights to the island, underscoring the extent of the fuel shortage.

U.S. Tariff Revenue Surges Amid Ongoing Disputes

Meanwhile, U.S. tariff revenue has surged by over 300% in recent months, bringing in $30 billion in January alone. This sharp increase follows President Trump’s decision to impose tariffs on a wide range of goods.  The tariff revenue for the year has already reached $124 billion, reflecting the aggressive trade policies pursued by the White House.

However, this rise in revenue comes as the U.S. waits for a crucial Supreme Court ruling on the legality of these tariffs. The Supreme Court has yet to issue its decision on the justification for the tariffs, with oral arguments held last November.

A ruling is expected soon, and a negative verdict could have implications for the U.S. economy. If the court finds the tariffs unjustified, the U.S. could be required to reimburse the duties collected, which would affect the country’s fiscal health.

As the U.S. faces this legal uncertainty, the tariff policy remains a key factor in shaping the nation’s economic outlook. Although tariff revenue has helped reduce the budget deficit by 26% compared to last year, the U.S. continues to struggle with its national debt. In January alone, interest payments on the debt totaled $76 billion, highlighting the ongoing financial strain.

The United States National Credit Union Administration (NCUA) has laid out its first proposed rules under the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, detailing how subsidiaries of federally insured credit unions could apply to become federally supervised payment stablecoin issuers. This marks a tangible step toward setting a licensing and oversight framework for a niche of digital assets that regulators view as both a payments solution and a potential systemic risk. The proposal aligns with the NCUA’s broader mandate to supervise credit unions that collectively serve roughly 144 million members and manage about $2.38 trillion in assets as of mid-2025. If the rulemaking proceeds, issuers would need an NCUA-permitted payment stablecoin issuer (PPSI) license before issuing coins, and federally insured credit unions would face investment and lending restrictions related to PPSIs. The agency has also signaled that a forthcoming rule will implement GENIUS Act standards for PPSIs, addressing reserves, capital, liquidity, illicit finance controls, and information technology risk management.

The agency’s stance reflects a cautious yet orderly approach to stabilizing the regulatory ground for stablecoins issued through bank-like affiliates. The NPRM focuses on licensing architecture and investment limits, laying the groundwork for a regulated path to potential stablecoin services for credit union members. The policy landscape around stablecoins in the U.S. has evolved alongside ongoing discussions about the GENIUS Act’s broader technical standards, including soundness provisions and risk controls that would govern PPSIs. Notably, the draft emphasizes that any licensing framework would be built around separate supervised subsidiaries rather than direct issuance by insured depository institutions themselves. This structural choice mirrors a recurring policy design across U.S. banking and payments regulation, seeking to isolate stablecoin activities within regulated, auditable entities while preserving the safety and soundness of the parent institutions.

The draft is notable for its clock and openness provisions. A key feature is a 120‑day deadline to approve or deny an application once it has been deemed substantially complete. If the agency does not act within that period, the application would be deemed approved by default. The rule also ensures a level playing field by stating that an issuer’s choice to operate on an open, public, or decentralized network cannot be used as the sole reason to deny a PPSI application. In addition, the NPRM reiterates a core GENIUS Act design principle: insured depository institutions, including credit unions, would not issue payment stablecoins directly; rather, they would channel activities through separately supervised subsidiaries that meet uniform federal standards.

Stakeholders now have a 60‑day window from the Federal Register publication to comment on the proposed rule before the NCUA moves to finalize or revise the licensing framework. The proposal, in its current form, serves as a narrow but important first step in shaping licensing, oversight, and investment parameters for PPSIs. A second wave of rulemaking is anticipated to implement the GENIUS Act’s broader standards for PPSIs, including risk management and anti‑money‑laundering controls.

​​Public chain neutral and 120‑day clock

Two features stand out for the broader crypto market. First, the NCUA would be barred from denying a substantially complete application solely because a stablecoin is issued “on an open, public, or decentralized network,” language that explicitly prevents public blockchain issuance from being rejected on that basis alone. Second, once an application is deemed “substantially complete,” the agency would have 120 days to approve or deny it, and if the NCUA fails to act within that window, the application would be “deemed approved” by default.

The draft also implements a central GENIUS Act design choice: insured depository institutions, including credit unions, cannot issue payment stablecoins directly and must instead use separately supervised subsidiaries that meet uniform federal standards. For credit unions, that generally means routing activity through credit union service organizations and other qualifying entities that fall under NCUA’s jurisdiction as “subsidiaries of an insured credit union.” The document, however, is only a notice of proposed rulemaking. Stakeholders have 60 days from Federal Register publication to comment before the NCUA can finalize or revise the licensing regime.

The NPRM signals a cautious but deliberate approach to how traditional financial institutions might intersect with digital assets through regulated vehicles. While the GENIUS Act has been a focal point of debate among policymakers, this initial draft concentrates on licensing mechanics and investment boundaries, deliberately deferring the detailed standards to a forthcoming proposal. The NCUA’s posture suggests an intent to create a controlled pathway for any PPSI that seeks to serve members, rather than open the door to a broad, unregulated stablecoin issuance environment.

As the public comment period opens, market participants and industry observers will be watching for how the agency delineates eligibility criteria for PPSIs, how it defines “substantial completeness,” and how the licensing process interacts with other federal regulators. The regulatory cadence around stablecoins remains a dynamic frontier in U.S. financial policy, particularly as other jurisdictions pursue their own approaches to stablecoin governance and payments infrastructure.

For now, the rulemaking is narrowly scoped to licensing and investment limits. A forthcoming proposal will implement GENIUS Act standards and restrictions for PPSIs, including reserves, capital, liquidity, illicit finance safeguards, and IT risk management. The NCUA indicated in the notice that the GENIUS Act’s standards would provide a cohesive framework for the prudential oversight of PPSIs operating via insured credit unions’ subsidiaries.

What to watch next

• 60‑day comment period following Federal Register publication to shape the final rule.
• Release of the final PPSI licensing framework, including application procedures and eligibility criteria.
• Publication of the GENIUS Act–driven standards for PPSIs, covering reserves, capital, liquidity, and IT risk management.
• Any regulatory guidance on investments by credit unions in PPSIs and related vehicle structures through subsidiaries.
• Potential pilot programs or demonstrations of PPSI services within insured credit unions, subject to approvals.

Sources & verification

• NCUA press release: NC UA proposes rule permitting payment stablecoin issuer applications — https://ncua.gov/newsroom/press-release/2026/ncua-proposes-rule-permitted-payment-stablecoin-issuer-applications
• NCUA press release: NC UA releases second quarter 2025 credit union system performance data — https://ncua.gov/newsroom/press-release/2025/ncua-releases-second-quarter-2025-credit-union-system-performance-data
• GENIUS Act overview and implications — https://cointelegraph.com/learn/articles/genius-act-how-it-could-reshape-us-stablecoin-regulation
• Magazine coverage: Bitcoin stablecoins showdown looms as GENIUS Act nears — https://cointelegraph.com/magazine/bitcoin-stablecoins-showdown-looms-genius-act-nears/