Nussle: Digital assets should be regulated with parity and fairness for credit unions

As the Senate Banking Committee Subcommittee on Digital Assets discusses how to develop an effective regulatory framework for digital assets, credit unions are advocating for parity with banks to ensure a competitive marketplace exists for users and issuers of digital assets. 

In a letter to the subcommittee, America’s Credit Unions President/CEO Jim Nussle asserted the interests of credit unions.  This includes assigning the NCUA primary responsibility for regulating credit union activities which “affirm the necessary authorities for credit unions to meaningfully engage with stablecoins and virtual currencies.” 

The letter reiterated the need for federal oversight of nonbank stablecoin issuers to ensure consistent supervision, anti-money laundering compliance, and application of safety and soundness expectations. It also described credit union support for a strong anti-fraud framework for all digital asset issuers to protect against scams targeting the elderly. 

“Future legislation,” Nussle wrote, “should clearly address the authority of credit unions to act as custodians for digital assets held by their members. Specifically, credit unions that offer custody or safekeeping services for digital assets, including permitted payment stablecoins and digital commodities, should not be required to hold assets held in custody as liabilities on their balance sheet.” 

America’s Credit Unions consistently advocates for a fair operating environment for credit unions in the digital asset space, engaging with Congress to ensure that credit unions can offer new and emerging products to consumers.
 
Read the full letter here.