WASHINGTON--Credit unions must have parity with banks in the digital assets marketplace to ensure they remain competitive, America’s Credit Unions and the Defense Credit Union Council emphasized in separate letters to the House Financial Services Committee.
The committee held a hearing on digital assets Wednesday. The letters were submitted for the hearing’s record.
“We support legislative frameworks which assign to the NCUA primary responsibility for regulating the activities of credit unions. We also support federal oversight of nonbank issuers of stablecoins to ensure consistent supervision, anti-money laundering compliance, and application of safety and soundness expectations,” ACU President and CEO Jim Nussle wrote.
The hearing is focused on a draft of the Digital Market Clarity Act, and America’s Credit Unions supports bill language including:
- Clarifying stablecoins cannot be treated as a bank deposit or credit union deposit under the Federal Deposit Insurance Act or the Federal Credit Union Act
- Language that makes clear that credit unions that offer custody or safekeeping services for digital assets, including permitted payment stablecoins and digital commodities, are not required to hold assets held in custody as liabilities on their balance sheet
- The creation of a clear regulatory pathway for credit unions to safely offer digital commodity custody services provided they meet the oversight and compliance requirements. However, there is still some ambiguity in this section that should be addressed
America’s Credit Unions said it also supports the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, which defines the term insured depository institution to include credit unions and designates the NCUA as the primary federal payment stablecoin regulator for the credit union industry.
DCUC Sends Letter To HFSC
In its letter to HFSC leadership, DCUC urged Congress to promote "consistent, harmonized rules" that allow credit unions to adopt digital tools responsibly.
"Clear regulatory frameworks will enable credit unions to offer digital asset services while ensuring consumer protection and financial stability," said DCUC Chief Advocacy Officer Jason Stverak. "It is essential that credit unions have equal access to digital asset opportunities as other financial institutions. This includes the ability to offer services such as custody of digital assets, issuance of stablecoins, and participation in digital payment systems. Legislation should ensure that credit unions are not excluded from these opportunities due to outdated regulations or oversight."
Stverak noted that credit unions have a long-standing commitment to consumer protection and financial inclusion.
"As digital assets become more prevalent, it is crucial to implement safeguards that protect consumers from fraud and other risks. This includes robust anti-fraud measures, anti-money laundering standards, and targeted financial education on digital assets. Military families, in particular, are vulnerable to financial scams and predatory practices," Stverak said. "By equipping credit unions with the tools and authority to offer secure digital asset services, we can better serve these communities and protect them from potential harm."