As Congress considers how to develop an effective framework for regulating digital assets, it is critical that credit unions receive parity with banks to ensure that a competitive marketplace exists for users and issuers of stablecoins. These requests and more were outlined in a letter sent by America’s Credit Unions President/CEO Jim Nussle to the House Financial Services Committee on Digital Assets, Financial Technology, and Artificial Intelligence ahead of yesterday’s hearing.

“We support legislative frameworks which assign to the NCUA primary responsibility for regulating the activities of credit unions,” wrote Nussle. America's Credit Unions also supports federal oversight of nonbank issuers of stablecoins to ensure consistent supervision and application of safety and soundness expectations.

Nussle also noted the subcommittee must be careful not to unintentionally create an uneven playing field among credit unions, banks, and non-depository institutions.

“Establishing barriers to credit union engagement with digital assets would undercut many of the financial inclusion benefits that may be realized through related technologies,” added Nussle. “The credit union industry has a long history of prioritizing the needs of underserved and low-income communities. It is our fervent desire to continue this important work.”

House Financial Services Committee leaders met with America’s Credit Unions last week to discuss pending legislation on stablecoins, which is expected to be unveiled soon.  

Read the full letter.