WASHINGTON--As the Senate Banking Committee Subcommittee on Digital Assets discusses how to develop an effective regulatory framework for digital assets, credit unions are advocating for parity with banks to ensure a competitive marketplace exists for users and issuers of digital assets.
In a letter to the subcommittee, America’s Credit Unions President/CEO Jim Nussle shared the interests of credit unions--including assigning the NCUA primary responsibility for regulating credit union activities which “affirm the necessary authorities for credit unions to meaningfully engage with stablecoins and virtual currencies.”
The letter states the need for federal oversight of nonbank stablecoin issuers to ensure consistent supervision, anti-money laundering compliance, and application of safety and soundness expectations. It also described credit union support for a strong anti-fraud framework for all digital asset issuers to protect against scams targeting the elderly.
“Future legislation,” Nussle wrote, “should clearly address the authority of credit unions to act as custodians for digital assets held by their members. Specifically, credit unions that offer custody or safekeeping services for digital assets, including permitted payment stablecoins and digital commodities, should not be required to hold assets held in custody as liabilities on their balance sheet.”