Simpson: Right-sized regulation strengthens cooperative finance
Credit unions exist to serve their members, whatever their needs may be, which means the rules that govern them matter. America’s Credit Unions President/CEO Scott Simpson outlined the difference between types of regulations in an op-ed published Wednesday.
“When regulation is thoughtful, credit unions can focus on serving members, making these life goals and daily needs a reality. When regulation is outdated or duplicative, it pulls time and resources away from the very people the system is meant to protect,” he said, adding “That balance is important. Credit unions have long asked for a regulatory framework that recognizes who they are, how they operate, and whom they serve. They’re not asking for a free pass, but a right-sized approach to regulatory oversight.”
As member-owned cooperatives rooted in Main Street, credit unions often bear the brunt of increased compliance costs at the expense of member-facing services.
NCUA’s Deregulatory Project is an example of the right kind of regulation, Simpson noted. It strengthens oversight by aligning regulatory expectations with real-world operations and risk.
“When credit unions can focus less on unnecessary compliance and more on serving their members, the foundation of cooperative finance grows stronger,” he wrote.