Newsroom
NAFCU voices CU concerns regarding digital assets to Treasury
NAFCU Senior Counsel for Research and Policy Andrew Morris Tuesday wrote a letter to the Treasury Department in response to its request for comment (RFC) on the responsible development of digital assets, fulfilling its consultative requirement under President Joe Biden's Executive Order on Ensuring Responsible Development of Digital Assets. Through the RFC, the Treasury Department requested feedback on implications of the development and adoption of digital assets, such as a central bank digital currency (CBDC), and the changes that could be expected in financial markets and payment systems. Of note, NAFCU last month sent members a Regulatory Alert breaking down the RFC.
Concerning private sector digital asset regulation, the letter incorporates what NAFCU has conveyed in prior comments to the NCUA and Congress by offering several high-level principles to incorporate in any future “framework.” These principles include:
- a level playing field for credit unions, banks, and other financial companies seeking to engage with digital asset technologies;
- the application of consumer protection laws to entities facilitating consumer engagement with digital assets; and
- support for responsible innovation within the credit union industry.
Morris also asks Treasury to clarify that references to insured depository institutions included in the President’s Working Group on Financial Markets’ Report on Stablecoins are inclusive of federally insured credit unions.
With respect to the RFC’s solicitation for input on a CBDC, Morris reiterates NAFCU’s position that the costs would outweigh the benefits – as the association has communicated previously to the Federal Reserve and Commerce Department on the same topic – and namely, that superior alternatives exist for accomplishing the same objectives.
“Given the lack of clarity regarding specific CBDC parameters and design features, NAFCU does not believe that sufficient evidence exists to justify development of a CBDC, particularly when better alternatives for achieving the same purported benefits already exist,” wrote Morris. “Credit unions are well positioned to improve underserved populations’ access to affordable financial products and their efforts do not depend upon the introduction of a CBDC.”
Read the full letter. NAFCU will monitor this topic as discussion about CBDC and digital assets continues.
Share This
Related Resources
Add to Calendar 2023-09-27 14:00:00 2023-09-27 14:00:00 Financial Services Mega-Trends: Welcome to a Whole New World of Financial Services About the Webinar A transformation is underway in the U.S. financial services industry that will have a profound impact on how participants do business, how they strategize about their futures, and how they collaborate around products, service and information. During this session, Cynthia Schroeder, Larry Pruss, and Patti Wubbels will highlight mega-trends worth watching. Key Takeaways: • How the financial services business model is changing • How new entrants are disrupting the industry through innovation • How technology is changing the nature of financial services delivery and distribution • How demographic shifts require credit unions to adapt their cultures and value propositions to gain market share among younger members • How credit unions must adopt a security-first mindset to protect their reputations and the data of their members Register Here Web NAFCU digital@nafcu.org America/New_York public
Financial Services Mega-Trends: Welcome to a Whole New World of Financial Services
preferred partner
Strategic Resource Management
Webinar
Cyber Threat Intelligence: The Key to Threat Surveillance
Cybersecurity, Risk Management
preferred partner
DefenseStorm
Blog Post
How to Begin the Search for a Mortgage Subservicer on the Right Foot
Mortgage Servicing
preferred partner
Dovenmuehle
Blog Post
Artificial Intelligence and Adverse Actions
Technology
Blog Post
Get daily updates.
Subscribe to NAFCU today.