Newsroom
White House releases comprehensive framework for responsible digital asset development
On Friday, the White House released a comprehensive framework detailing responsible development of digital assets. The framework follows President Biden’s Digital Asset Executive Order and is the first government-wide approach to managing the risks and harnessing the benefits of digital assets.
While the NCUA was not directly tasked with any reports for the Executive Order, the agency is part of multiple interagency groups that are working on reports and making recommendations on digital asset development and regulation. Reports made by other agencies, and future actions taken by the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), will have an impact on the digital asset products and services offered to credit unions and their members. FinCEN and other enforcement agencies will better define the digital asset related BSA/AML responsibilities of credit unions.
The reports that make up the framework push regulators, such as the SEC and CFTC, to follow their mandates and “aggressively pursue investigations and enforcement actions against unlawful practices in the digital asset space.” The reports also encourage agencies to collaborate when addressing digital asset risks facing consumers, investors, and businesses.
As a result of these reports, President Biden will work on recommendations to agencies that “create a federal framework to regulate nonbank payment providers.” The reports also note that the President may call on Congress to revise laws to create harsher punishments for digital asset crimes.
“It is a known fact that innovation plays an integral role in the health and competitiveness of the financial services market. All financial institutions, especially credit unions, must have a clear regulatory framework to take advantage of such innovations, including digital assets,” said NAFCU President and CEO Dan Berger. “NAFCU understands that the development and use of digital assets has seen unprecedented growth in recent years. While we welcome clarity and guidance from the Biden Administration on how credit unions can integrate the use of digital assets into their services, we urge continued engagement with smaller financial institutions and ask that the NCUA remain a focal point when addressing feedback and concerns over the use of certain digital assets.”
NAFCU wrote to the NCUA in response to the agency’s request for information (RFI) in September 2021 to explain how credit unions use digital assets and the risks they pose to credit unions. Three months later, the NCUA sent a Letter to Credit Unions to clarify the existing authority credit unions have “to establish relationships with third-party providers that offer digital asset services.” The agency penned another Letter to Credit Unions in May 2022 regarding credit union use of distributed ledger technologies (DLT).
For more information on digital assets, read NAFCU’s Digital Assets Issue Brief. The association has consistently advocated for actions that ensure credit unions can fairly engage with digital assets while protecting consumers. Additionally, Rep. Tom Emmer, R-Minn., and NCUA Vice Chairman Kyle Hauptman spoke about proper regulation of digital assets at NAFCU’s 2022 Congressional Caucus. Vice Chairman Hauptman also discussed digital assets in the third episode of NAFCU’s Credit Union Policy Podcast (CUPP).
There are more reports due under President Biden’s Digital Asset Executive Order, and NAFCU will continue to advocate for a level playing field in the digital asset space.
Share This
Related Resources
Add to Calendar 2024-04-25 14:00:00 2024-04-25 14:00:00 ChatGPT: What AI can do for you! ChatGPT has been created with one main objective – to predict the next word in a sentence, based on what's typically happened in the gigabytes of text data that it's been trained on. Did you ever hear of the saying, “People fear the unknown?” Artificial intelligence scares people, but it is the future, and you need to understand the tools and resources it offers. It’s also about saving time, that’s what technology and in this case, artificial intelligence can do for you. If you want to save time and have a better quality of life, this training is for you. Once you give ChatGPT a question or prompt, it passes through the AI model and the chatbot produces a response based on the information you've given and how that fits into its vast amount of training data. It's during this training that ChatGPT has learned what word, or sequence of words, typically follows the last one in a given context. During this webinar, ChatGPT: What AI can do for you, you’ll discover the background, purpose, usability, and the pros and cons. Don't miss this opportunity! Key Takeaways Learn the background of AI Understand the purpose of AI Identify the pros and cons Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until April 25, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCRMs Risk titles Education Credits NCRMs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
ChatGPT: What AI can do for you!
Credits: NCRM
Webinar
Add to Calendar 2024-04-25 14:00:00 2024-04-25 14:00:00 Unifying Two Different Executive Benefits Programs About the Webinar In part one we discussed how to retain key positions during a time of transition. In part two, we will look at how to combine executive benefits programs from two different organizations into a single high-performing program. Evaluating each program includes many different facets, from strategy and expense to performance and servicing. This session will provide important considerations, whether or not you have pending M&A activity. Key Takeaways: Is the plan design both retentive and efficient? Is the benefit expense properly mitigated? Does the legal agreement reflect the board’s intent? View On-Demand Web NAFCU digital@nafcu.org America/New_York public
Unifying Two Different Executive Benefits Programs
preferred partner
Gallagher
Webinar
Add to Calendar 2024-04-24 14:00:00 2024-04-24 14:00:00 Optimize Liquidity, Maximize Loan Growth: The Network Lending Advantage About The Webinar Join us to learn more about network lending, a cooperative model allowing credit unions to optimize liquidity and achieve loan growth. Discover how credit unions can participate in loan pools with other institutions, allowing them to diversify portfolios, access loans with potentially lower risk and higher yields, and expand lending capacity without necessarily needing a surge in deposits. Delve into how credit unions can pool their resources, set common underwriting and pricing standards, and collectively originate, buy, and sell loans to optimize liquidity management. Hear from your peers about best practices, case studies, and practical strategies to harness the full potential of network lending and how it's helped their credit unions. Don't miss this valuable opportunity to learn how to strengthen your credit union's position in today’s competitive environment. Key Takeaways: How network lending differs from traditional lending The benefits of participating in loan pools with other credit unions How credit unions can set common underwriting and pricing standards and collectively originate, buy and sell loans to optimize liquidity management Why network lending is critical to loan growth Watch On-Demand Web NAFCU digital@nafcu.org America/New_York public
Optimize Liquidity, Maximize Loan Growth: The Network Lending Advantage
preferred partner
LendKey
Webinar
Add to Calendar 2024-04-23 14:00:00 2024-04-23 14:00:00 Monitoring the Latest Litigation Risks Credit unions’ operations pose litigation risks, with more of these cases being filed as class action lawsuits. In this Monitoring the Latest Litigation Risks for Credit Unions webinar, you’ll review some of the specific kinds of lawsuits impacting credit unions and what potential claims could be on the horizon. You’ll also examine some options for mitigating risks. Key Takeaways Review the current lawsuit trends. Understand the potential claims risks Explore options for mitigating risks. Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until April 23, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCRMs will recieve 1.0 CEUs for participating in this webinar NCCOs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Monitoring the Latest Litigation Risks
Credits: NCCO, NCRM
Webinar
Get daily updates.
Subscribe to NAFCU today.