April 27, 2023

NAFCU engaged as lawmakers continue digital assets discussion

digital dollarThe House Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion holds another hearing today to discuss digital assets and regulatory gaps in the market.

Ahead of today’s hearing, NAFCU Vice President of Legislative Affairs Brad Thaler reiterated the association’s call for a clear regulatory framework, as well as ensuring credit unions are included in any definition of an insured depository institution.

“Establishing barriers to credit union engagement with digital assets would also undercut many of the financial inclusion benefits that may be realized through related technologies given that the credit union industry has a long history of prioritizing the needs of underserved and low-income communities,” Thaler wrote.

A hearing held by the subcommittee last week focused on stablecoins; NAFCU provided feedback on the draft bill under consideration, noting it’s “a step in the right direction.” There was broad agreement among lawmakers that prudential regulations are needed.

Earlier this week, an updated version of draft stablecoin legislation from House Financial Services Committee Chairman Patrick McHenry, R-N.C., was released. The revised draft would provide state regulators more authority to charter and create rules for stablecoin issuers within their jurisdiction, though issuers could still be subject to Fed enforcement actions.

NAFCU will continue to advocate for a clear regulatory framework for cryptocurrency and other financial technologies to support innovation and adoption while reducing risks.