DCUC Seeks Credit Union Parity In Digital Asset Market Clarity Act
By CU Today Staff —
WASHINGTON--The Defense Credit Union Council has asked the Senate Committee on Banking, Housing, and Urban Affairs to revise the proposed Senate substitute to H.R. 3633, the Digital Asset Market Clarity Act, which currently creates “disparities” between banks and credit unions, DCUC said.
DCUC’s comments focus on ensuring the legislation provides comparable statutory protections for credit union shares and dividends, recognizes the role of the National Credit Union Administration, and preserves access to “lawful” digital asset-related services for credit unions and the many communities they serve across the United States and overseas. DCUC said its recommendations build on its previous submissions made in January, July, and September, which addressed stablecoin-related funding risks, regulatory parity, and the ability of servicemembers and military families stationed overseas to maintain access to financial services.
“Section 10404 expressly addresses the protection of interest-bearing community-bank deposits against harmful migration into payment stablecoins but does not provide an equivalent express trigger for credit union share accounts and dividends. Congress should not recognize a threat to local lending when a bank loses funding while leaving comparable credit union losses without the same statutory response,” Jason Stverak, DCUC chief advocacy officer, stated to Committee leaders on Monday.
DCUC is seeking amendments to Section 10404 that would expressly include credit union accounts and dividends wherever bank deposits and interest are used as the legislative benchmark. In its comments Monday, DCUC also recommended that qualifying credit union funding losses independently trigger the same safeguards available to community banks and that NCUA be included in required consultations and given a formal role in rules addressing rewards, disclosures, and related effects on credit unions.
“Credit unions should not have to rely on indirect protections or wait for a future study when legislation establishes an immediate safeguard for comparable bank funding,” said Anthony Hernandez, DCUC president/CEO, ret. U.S. Air Force colonel. “A military family’s financial security should receive the same consideration regardless of whether its savings are held at a bank or a member-owned credit union. Our goal is a digital asset framework that protects consumers, preserves responsible innovation and gives credit unions a fair opportunity to serve their members.”
Beyond Section 10404, DCUC identified additional areas where conforming language could provide greater parity, including authority and registration, digital asset custody and transition provisions, capital and customer-cash accounts, resolution considerations, and compliance implementation periods. DCUC said it renewed its request for clear protections ensuring official overseas assignments do not disqualify servicemembers, accompanying families, or federal civilian households from otherwise lawful financial services.
Stverak expressed that DCUC supports provisions that prohibit compensation paid solely for holding stablecoins and recognizes the distinction between passive yield and legitimate incentives connected to qualifying payment activity. DCUC recommended narrowing language that could permit rewards based primarily on balance, duration, or tenure without a substantial, objectively verifiable connection to genuine activity.
DCUC’s comments identify 13 areas for comparison between the treatment of banks and credit unions and request targeted amendments before final adoption of the legislation.
“Credit unions are simply asking that this bill protects comparable savings, recognizes comparable lawful services, and ensures that the communities who depend on their institution have a fair opportunity to participate in the financial future Congress is shaping,” Stverak added.
Originally reported by CU Today.