Detailing credit union priorities before NCUA testimony
With NCUA Chairman Kyle Hauptman set to testify before the House Financial Services Committee Tuesday, America’s Credit Unions Senior Vice President of Advocacy Greg Mesack outlined several credit union priorities in a letter sent for the hearing’s record. Hauptman will testify alongside other federal financial regulators.
Mesack noted America’s Credit Unions’ ongoing support for NCUA’s proposed budget reduction in 2026, agency modernization and restructuring efforts, and elimination of reputation risk from examinations and supervision.
To help credit unions continue to meet members’ financial needs, NCUA should:
- Maintain the current 18% temporary interest rate ceiling for federal credit unions beyond its expiration in March 2026;
- Align with recent federal financial regulator reforms by modernizing examination scope and frequency and clarifying the standards for “unsafe or unsound practices” and formal exam findings;
- Provide additional clarity on what custodians of stablecoins or stablecoin reserves may do with those funds beyond general safekeeping, and their status collateral for lending purposes while implementing the GENIUS Act;
- Pursue targeted capital relief or credit unions that aligns with the Nov. 25 proposal from federal bank regulators that would implement changes to the community bank leverage ratio framework; and
- Consider working through the Federal Financial Institution Examination Council to modernize the CAMELS rating system, with a particular focus on the “M” (Management) component.
The letter also offered support for the Taskforce for Recognizing and Averting Payment Scams (TRAPS) Act (H.R. 4936), which would create a bipartisan task force to combat fraud. America’s Credit Unions also encouraged the committee to support and consider legislation that would provide greater regulatory relief to credit unions, such as the Expanding Access to Lending Options Act (H.R. 4167).