WASHINGTON—The Defense Credit Union Council has learned that retailers are encouraging the Senate to include the Credit Card Competition Act (CCCA) in the GENIUS Act—a bill that would establish federal oversight of payment stablecoins.
DCUC has sent a letter to the Senate urging the exclusion of the CCCA from the GENIUS Act or any other legislative package moving forward on the Senate floor.
In its letter, said it DCUC strongly opposes the CCCA and its “harmful implications” for financial readiness, cybersecurity, and consumer protection.
“Including this controversial and unvetted legislation in a critical economic and supply chain bill would be a major setback for servicemembers and their families who rely on safe and affordable credit access,” wrote DCUC Chief Advocacy Officer Jason Stverak.
“The Credit Card Competition Act—first introduced under the guise of promoting ‘competition’ in the payments system—represents a fundamental threat to the operational stability of credit unions serving our nation’s military and veteran communities,” wrote Stverak. “The legislation, as drafted, would mandate routing requirements that strip away the ability of credit card issuers to choose secure, reliable payment networks. Instead, it forces the hand of financial institutions—large and small alike—to facilitate transactions through potentially less secure, untested, or foreign-controlled networks.
“This isn’t just a fight between Wall Street banks and big-box retailers,” continued Stverak. “It is about cybersecurity, consumer privacy, and protecting the ability of America’s servicemembers and their families to rely on safe, stable, and mission-oriented credit access. For the defense credit unions located on and around military installations, which often serve the unique financial needs of junior enlisted personnel, deployed service members, and veterans recovering at VA medical facilities, this legislation would impose enormous compliance costs and disrupt the card programs that help promote financial wellness and fraud protection.”
ACU Responds
America's Credit Unions said it is supportive of the GENIUS Act moving forward in Congress, but without the CCCA attached t it.
“To the extent there's been discussions of adding to that legislation, it's certainly something that we are extremely opposed to,” said ACU Chief Advocacy Officer Carrie Hunt. “America's credit unions has been, and will be, lobbying against this issue and talking to members of Congress consistently. And we will continue to do that. This is an incredibly important issue for our members.”
Hunt added ACU plans to send a letter to the Senate Tuesday opposing attaching the CCCA to the GENIUS Act.