WASHINGTON—America’s Credit Unions and the Defense Credit Union Council said Monday they are closely tracking a fast-moving week on Capitol Hill ahead of the Memorial Day recess, with stablecoin regulation, Bank Secrecy Act reform, housing legislation and interchange battles all emerging as major priorities for credit unions.
During separate Monday morning press calls, both organizations pointed to House action on an amended housing package, upcoming House Financial Services Committee hearings on BSA reform and fintech partnerships and more.
America’s Credit Unions said it is closely watching movement on a number of major financial services issues before lawmakers depart Friday.
According to Brad Thaler, head of legislative advocacy at ACU, the House is expected to take up the amended “21st Century Housing Act” under suspension rules, with a vote anticipated Tuesday night. Thaler also pointed to Thursday’s House Financial Services Committee hearing on Bank Secrecy Act (BSA) reform as another key development for credit unions.
ACU Senior Vice President of Advocacy Greg Mesack said BSA reform remains a major priority for credit unions, noting ACU has been gathering direct feedback from member institutions on ways to reduce compliance burdens while preserving safeguards against illicit finance.
“We’ve had some great conversations with our member credit unions,” Mesack said, adding the organization plans to share recommendations with lawmakers as part of the committee process.
DCUC Chief Advocacy Officer Jason Stverak said his group is also focused on the housing act, where disagreements over the House changes remain. Stverak said DCUC plans to send a letter to every House office supporting continuation of the process and applauding lawmakers for restoring language tied to the Credit Union Board Modernization Act. However, he said DCUC remains concerned that community banks continue to receive broader regulatory relief than credit unions.
“We again express our concern, as we have on multiple occasions, that the community bank sector seems to get section after section of significant regulatory relief and reforms, and credit unions maybe only one or two items,” Stverak said.
He added DCUC is urging lawmakers to include additional credit union priorities in any final package, including the CLF compromise legislation backed by Sens. Kevin Cramer and Alex Padilla, as well as the Loan Maturity Act, saying both measures would provide greater parity with banks.
Stverak also highlighted two upcoming House Financial Services hearings, one focused on Bank Secrecy Act reforms and another examining cooperation between fintech firms and financial institutions. While the hearings are expected to focus largely on banks, he said DCUC plans to emphasize the growing role credit unions are playing in fintech partnerships and financial innovation.
On reconciliation legislation, Stverak said the Senate is now working through “Reconciliation 2.0,” focused largely on funding for ICE and Border Patrol operations within the Department of Homeland Security. He noted the Senate parliamentarian required multiple changes during the so-called “Byrd bath” review process and said the Senate Budget Committee is expected to move the legislation forward this week.
Looking ahead, Stverak said House Speaker Mike Johnson has floated the possibility of a future “Reconciliation 3.0” package before the midterm elections, something DCUC will monitor closely to ensure the credit union tax exemption remains protected and to identify opportunities to advance credit union priorities.
Finally, Stverak said DCUC continues to closely monitor state-level interchange legislation. He pointed to Colorado, where Gov. Jared Polis is considering an interchange bill awaiting his signature or veto, ongoing efforts in Illinois to repeal portions of the state’s interchange law before the legislature adjourns May 31, and emerging interchange related legislation in New York.
“We’re working with our members and league partners to ensure defense credit unions’ voices are heard on these issues both at the state and national levels,” Stverak said.
On the political front, ACU Head of Political Affairs Trey Hawkins said the trade group is supporting 41 candidates across six states, including backing Rep. Andy Barr in Kentucky’s open U.S. Senate race following Sen. Mitch McConnell’s retirement. Hawkins described Barr, who serves on the House Financial Services Subcommittee on Financial Institutions, as “a strong credit union champion.”
Meanwhile, ACU Director of Innovation and Technology Andrew Morris said his organization is still reviewing the NCUA’s second proposal implementing the GENIUS Act, but said the agency’s latest approach appears largely aligned with the statute’s requirements governing stablecoin related capital, liquidity and reserve standards.
Morris said one of the more significant additions in the latest proposal was NCUA’s discussion of tokenized deposits and tokenized shares, including clarification that federally insured credit unions would retain authority to engage in otherwise permissible deposit-related digital asset activities.
“That is a helpful clarification,” Morris said, noting tokenized deposits could eventually compete with stablecoins and that the proposal appears to move credit unions closer to developments already underway on the banking side.
Morris added that many early questions from credit unions centered less on issuing stablecoins directly and more on how NCUA would treat custodial services involving stablecoins. He said the new proposal appears to address some of those concerns by providing additional guidance for institutions interested in custody-related activities without fully entering the stablecoin issuance business.