With CLARITY Act Stalled, DCUC Turns To NCUA For Digital Asset Answers
By CU Today Staff —
WASHINGTON—With congressional action on digital-asset legislation stalled, the Defense Credit Union Council is turning to the NCUA, urging Chairman John Crews to spell out what credit unions can—and cannot—do with digital assets under existing law.
DCUC’s request follows the Senate’s Sept. 15 failure to invoke cloture on a motion to proceed to the CLARITY Act, leaving credit unions facing continued uncertainty over issues ranging from stablecoins and tokenized shares to custody, payments and settlement activities.
“Credit unions need a clear understanding of what they can do today, what conditions apply, and where additional authority is needed,” said Anthony Hernandez, DCUC president/CEO, ret. U.S. Air Force colonel. “NCUA has already established important building blocks through its digital-asset guidance and implementation of the GENIUS Act. We believe the next step is bringing those pieces together into a practical framework credit unions can use.”
In its letter, DCUC requested the NCUA develop a consolidated digital-asset roadmap addressing several questions:
DCUC noted that NCUA’s existing guidance provides a foundation, with its 2021 guidance addressing qualifying relationships with third-party digital-asset providers, and its 2022 distributed-ledger guidance confirming that the technology is not prohibited when used for otherwise permissible activities and in compliance with applicable law.
DCUC encouraged NCUA to build on that foundation with clearer, activity-specific guidance covering third-party services, payment and settlement activities, payment stablecoins, tokenized shares, custody-related functions and other emerging uses of distributed-ledger technology.
DCUC also urged NCUA to complete its GENIUS Act implementation with clear and proportionate standards that account for cooperative structures and provide credit unions a meaningful opportunity to participate alongside similarly situated regulated institutions.
DCUC also wrote that boards and examiners should have consistent expectations for governance, cybersecurity, third-party oversight, consumer protection, reconciliation and orderly exit, with clear distinctions between legal requirements and supervisory guidance.
Coordinating For Credit Unions And Military Families
Because digital-asset activities can involve multiple federal and state regulators, DCUC also encouraged NCUA to coordinate closely with Treasury, FinCEN, the SEC, CFTC, and other agencies to ensure credit unions are appropriately considered in emerging policy and regulatory frameworks. DCUC called for practical guidance addressing military addresses, remote identity verification, and deployment-related changes while maintaining applicable sanctions and anti-money-laundering requirements.
DCUC has requested an in-person meeting with Crews and NCUA staff to discuss these issues and identify what can be addressed under existing authority, where additional guidance or rulemaking may be appropriate, and which questions require congressional or interagency action.
Originally reported by CU Today.