America's Credit Unions Urges Senate to Refine Crypto Bill
By CU Today Staff —
WASHINGTON— America's Credit Unions and every state credit union league are urging the Senate to approve the CLARITY Act while making targeted changes they say are needed to protect credit unions' ability to compete in digital assets and continue serving local communities.
The letter was sent Tuesday as the Senate prepares to consider the legislation on the floor.
The organizations said the bill resolves one of their primary concerns by explicitly authorizing both federal credit unions and federally insured state-chartered credit unions to participate in digital asset activities under National Credit Union Administration oversight: "...we are pleased with the work the [Senate Banking] Committee and the bill's sponsors have done to ensure that the National Credit Union Administration has legal authority over credit unions participating in innovative digital asset services. We appreciate the Committee working with credit unions and the NCUA to ensure that the version of the CLARITY Act before the Senate provides clear authorization for both federal credit unions (FCUs) and federally insured, state-chartered credit unions (FISCUs) to participate in innovative digital asset activities in Section 401."
The groups said they continue to have concerns with the bill's narrow prohibition on interest and yield for payment stablecoins and what they described as insufficient language discouraging the idle holding of those assets.
"To be clear, we are supportive of the vast majority of the CLARITY Act, particularly provisions which are essential for maintaining the competitive relevance of credit unions, and believe it should become law. In this context, however, we would support Congress refining the prohibition on yield in a way that ensures credit unions can continue supplying credit to local communities while having the ability to meaningfully engage with growing digital asset markets."
The letter concludes that the legislation should strike a balance between fostering innovation and preserving access to traditional financial services.
"Ideally, the CLARITY Act will integrate the world of traditional finance with an emerging digital asset sector with minimal disruption to the millions of Americans who depend on reliable access to credit through their local credit union. We agree that the goal should not be to pick winners or losers between crypto and traditional finance."
Originally reported by CU Today.