CU Executive Welcomes NCUA Stablecoin Reporting Plan, But Warns Of ‘Stablecoin Mania’
By CU Today Staff —
ST. CLOUD, Minn.—As the NCUA moves to establish new reporting requirements for credit unions involved in stablecoin activities, one credit union executive says the proposal is a welcome development, but cautions the industry against becoming so focused on stablecoins that it overlooks other opportunities involving digital assets.
Chase Larson, executive vice president and chief lending officer at St. Cloud Financial Credit Union, said the NCUA's proposed Schedule J represents an important step toward bringing digital assets into mainstream credit union operations.
“NCUA adding a dedicated stablecoin schedule to the Call Report is a signal that digital assets are moving from the edge of credit union balance sheets into core financial infrastructure. Clear, consistent reporting is how credit unions earn the trust to lead here, not follow,” he said.
As previously reported by CUToday.info, the NCUA is proposing 26 new reporting accounts covering stablecoin reserve custody, control of cryptographic keys, exposure to issuers and stablecoins held on credit union balance sheets. The requirements would take effect with the March 31, 2027, Call Report, subject to regulatory approval.
Larson said St. Cloud Financial is among the credit unions that have been operating ahead of a clear reporting framework.
“Standardized data on reserve custody, key control, and stablecoin exposure gives examiners a common language and gives credit unions a defined standard to meet. That predictability is what lets cooperatives invest with confidence," Larson said.
But Larson said reporting requirements alone are not enough. He called on the NCUA to provide clearer guidance on the custody and accounting treatment of digital assets held on credit union balance sheets, arguing that such clarity would help credit unions participate in emerging financial infrastructure while keeping wealth in their local communities. The proposed Schedule J would establish reporting requirements but would not itself authorize new activities or resolve those accounting questions.
Larson also warned that credit unions risk developing tunnel vision around one particular digital asset.
“It’s my belief though that we still have this ‘Stablecoin Mania’ phase happening in Credit Unions, where leaders have tunnel vision around stablecoins. It will be important for credit unions to have core centric infrastructure that allows them to offer and interact with: stablecoins, tokenized deposits and digital assets such as Bitcoin," Larson said.
His comments add another perspective to the industry's response to the NCUA proposal. As CUToday.info previously reported, the Defense Credit Union Council has raised concerns about potential compliance burdens, while InvestiFi CEO Kian Sarreshteh said standardized reporting could help credit union boards become more comfortable approving stablecoin initiatives.
Originally reported by CU Today.