From the NCUA to the Penny: The Regulatory Updates Credit Unions Can’t Ignore
If it feels like federal rules have been shifting faster than you can keep up, you’re not imagining it. Let’s break down the latest regulatory updates and what they mean for credit unions right now. We will start by covering what’s happening over at the NCUA; see where things are with the GENIUS Act; give some updates on implementation of H.R. 1(aka The One Big Beautiful Bill); and then finally answer the burning question we have all been asking: what’s going on with the penny?
The NCUA
There’s a lot going on over at the NCUA. While Chairman Hauptman remains as the single board member with a reduced staff, it was just announced in late January that he has been appointed as a member of the Public Company Accounting Oversight Board (PCAOB). He shared that he intends to remain in his role as NCUA Chairman until his successor is appointed by President Trump and confirmed by the U.S. Senate. The Harper-Otsuka lawsuit is currently on hold pending a decision from the U.S. Supreme Court in Trump v. Slaughter, which is a case addressing the removal of FTC Commissioner Rebecca Slaughter without cause. Oral arguments in Slaughter were held on December 8, 2025 and a decision is expected to be made by June 2026. What does this mean for credit unions right now? This means the agency’s authority is potentially limited. For example, there are still questions regarding whether a single member board can approve or amend regulations or issue new rules or guidance.
Lastly, be sure to check out the recent blogs written by myself and my colleague, addressing the NCUA’s Dregulation Project. The project focuses on the NCUA’s proposals to change or remove regulations that are obsolete; duplicative of statutory requirements; intended to serve as guidance (not obligatory requirements); or overly burdensome.
The GENIUS Act
The Guiding and Establishing National Innovation for U.S. Stablecoins Act was signed into law on July 18, 2025. It defines and establishes a federal regulatory framework for “payment stablecoins”, only permitting payment stablecoin issuers who obtain a federal license to issue stablecoin in the U.S. Recently, the Treasury Department issued an Advance Notice of Proposed Rulemaking (ANPR), seeking public comment related to the Treasury’s implementation of the GENIUS Act. The NCUA submitted a rulemaking to the OMB on December 19, 2025, which will not be made public while under review. Regulators are required to issue implementing regulations by July 18, 2026.
H.R. 1 (a.k.a. The One Big Beautiful Bill)
We’ve had a lot of questions come through our compliance inbox about H.R. 1 (a.k.a. the One Big Beautiful Bill Act), specifically when it comes to the auto loan interest tax deduction and the tax on remittance transfers.
Auto Loan Interest Deduction
The auto loan interest tax deduction is an “above the line” tax deduction for qualified passenger vehicle loan interest in effect for three years for the tax years 2025-2028. It also requires lenders (including credit unions) that receive $600 or more in interest on a specified passenger vehicle loan” to provide a form to the IRS reporting the interest collected. We wrote a blog overviewing the deduction back in July. Since then, the IRS has issued transitional guidance and even more recently, proposed regulations.
However, this has come with some challenges, as the proposed deduction provisions have raised major operational, compliance, and consumer-facing challenges. Because the provisions would only be in effect for three years, putting them in place would require large, one-time costs, rewrites of credit union systems, or requiring determinations based on information that credit unions do not traditionally possess. Although the public comment period is closed, America’s Credit Unions submitted a letter to the IRS on February 2 and you can read that letter here. We have also published FAQs that answer some questions that our members have posed.
Remittance Transfers
The U.S. remittance transfer tax is a 1% excise tax on remittance transfers. There is an exemption for transfers originating from a credit union account; however, there have been some questions on situations where a member deposits cash and then subsequently uses the same account to send a remittance. H.R. 1 does not place a minimum time requirement for funds to be in a credit union account to qualify for the exemption. America’s Credit Unions has addressed this in a December 2025 letter to the Treasury Secretary.
The Penny
The “last penny” was produced on November 12, 2025 at the U.S. Mint in Philadelphia because it was costing the government more to produce the penny that the value it represents. Additionally, it has long been a challenge for retailers to hold enough pennies for cash transactions. Coin distributors were running out of penny rolls to distribute to financial institutions. Congress, in response, has introduced a bill, the Common Cents Act, which lays out a process for rounding cash transactions to the nearest nickel. America’s Credit Unions, along with the American Association of Credit Union Leagues and all state leagues, have written a letter to the Federal Reserve and House Financial Services Committee in support of the Common Cents Act and measures to keep pennies in circulation. Additionally, the Treasury provided guidance FAQs in December. While the Federal Reserve previously stopped accepting pennies, on January 14, 2026, they resumed accepting pennies from banks and credit unions at commercial coin distribution locations providing services under arrangements with the Federal Reserve. You can read the press release here.
If you have any questions concerning this topic, please contact the America’s Credit Union’s Compliance team at [email protected].
