Credit Union Groups Target Digital Assets, CFPB Reform As Congress Heads Toward Election Break
By CU Today Staff —
WASHINGTON — Credit union advocates are bracing for a busy week in Washington, with digital asset legislation, CFPB reform, fraud measures and credit union access to capital among the issues being watched as both chambers of Congress meet for their final week before the general election.
More than 500 credit unions are represented at America’s Credit Unions’ Congressional Caucus (Sept. 13-15) and fall Hill hikes, while the Defense Credit Union Council is pressing lawmakers on a broad package of credit union priorities.
Among the biggest issues is the Senate’s CLARITY Act, which is expected to face a procedural vote Tuesday. America’s Credit Unions said it will engage lawmakers on revisions needed to ensure credit unions can participate effectively in the digital-assets marketplace. DCUC said its initial review found the latest Senate draft improved, but it remains concerned about provisions affecting Americans living overseas and language that explicitly provides protections or authorities for banks without similarly identifying credit unions or the NCUA.
Jason Stverak, DCUC chief advocacy officer, said the organization’s position is straightforward: “Whatever is given to the banks because of authorities, benefits, regulatory reform, et cetera, need to be given on an equal basis to credit unions.”
He pointed to language addressing potential effects on deposits at banks with $10 billion or less in assets while not expressly including credit unions, and said DCUC wants Congress to ensure parity as the legislation advances.
Attention then turns Wednesday to a House Financial Services Committee markup that includes several credit union supported measures. DCUC is backing H.R. 1653, the Civil Investigative Demand Reform Act; H.R. 4936, the TRAPS Act addressing payment scams; H.R. 7866, the American Lending Fairness Act; and H.R. 10184, the Consumer Financial Protection Accountability and Reform Act. DCUC also continues to advocate for converting the CFPB to a bipartisan five-member commission. America’s Credit Unions likewise identified the CFPB reform package and CID legislation among its priorities for the markup.
The House is also expected to consider two credit union backed measures under suspension of the rules: the GUARD Act, aimed at combating financial fraud against older Americans, and the Common Cents Act. Treasury Secretary Scott Bessent is scheduled to appear before House Financial Services on Tuesday to discuss the international financial system.
DCUC is simultaneously pushing several longer-term priorities, including greater credit union participation in rural and agricultural lending and passage of veterans member business lending legislation.
“Access to capital is an important part of both veteran entrepreneurship and rural economic development, and credit unions should have the same ability to serve these borrowers as other financial institutions,” Stverak said.
DCUC is also seeking Central Liquidity Facility enhancements, greater loan-maturity flexibility and veteran business lending provisions in the FY2027 National Defense Authorization Act.
On the regulatory front, DCUC is monitoring the federal agencies’ proposed third-party risk management guidance while opposing H.R. 10230, which would broadly restore the NCUA’s authority to examine credit union third-party vendors. DCUC said it supports addressing cybersecurity and third-party risks but favors a more targeted approach developed with credit union input. It also continues to oppose interchange mandates and a blanket 10% interest-rate cap.
The unusually concentrated legislative week comes as credit union advocates descend on Capitol Hill. America’s Credit Unions said representatives of more than 500 credit unions are participating in Congressional Caucus and fall Hill hikes, with nearly 500 meetings with lawmakers scheduled. As CUToday.info reported, DCUC has released 17 issue-specific congressional priority papers to help credit union representatives make their case. Stverak said local examples can be particularly effective.
“Local stories and direct member experiences can help demonstrate the practical effects of federal policy and strengthen the case for including credit unions in legislative discussions from the outset,” he said.
Originally reported by CU Today.