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Over a dozen NAFCU-member credit unions along with NAFCU Senior Vice President of Government Affairs Greg Mesack, Vice President of Regulatory Affairs Ann Kossachev, and Senior Regulatory Affairs Counsel Kaley Schafer Thursday met with Treasury’s Office of Financial Institutions to discuss digital assets and climate-related financial risks as it pertains to the credit union industry. 

During the meeting, NAFCU and the 14 participating credit unions shared concerns on the continued impact climate change has had on financial markets, encouraging the Financial Stability Oversight Council (FSOC), including the NCUA and the Federal Housing Finance Agency (FHFA), to work together to create climate risk policies.

On the FSOC’s October report on climate-related financial risks, the association noted that there are concerns regarding states with higher climate risks where insurers are no longer willing to insure properties in said areas.

The group also discussed the adoption of digital assets, specifically in reviewing the challenges and risks of these innovations in non-regulated spaces. NAFCU shared several concerns related to the use of cryptocurrency and credit unions’ exclusion from the President’s Working Group’s (PWG) report on stablecoins. NAFCU Vice President of Legislative Affairs Brad Thaler shared similar concerns in a letter to Congress Wednesday ahead of the House Financial Service Committee hearing on the future of digital assets and finance.  

In addition, NAFCU and credit union members expressed concerns regarding the CDFI backlog, asking Treasury to provide a status update for 2022. The association has advocated for the FHFA to consider purchasing mortgage loans from CDFIs to help underserved borrowers and encourages Treasury to urge the FHFA to begin this process.

NAFCU and its member credit unions will remain engaged with administration officials, lawmakers, and regulators in Washington. The association will continue to update credit unions on these issues and more via NAFCU Today.