Providing feedback on draft financial innovation legislation
In advance of today’s House Financial Services subcommittee hearing on fintech regulations, America’s Credit Unions weighed in on three pieces of draft legislation up for discussion.
The bills are:
- Fostering the Use of Technology to Uphold Regulatory Effectiveness in Supervision (FUTURES) Act, which would require supervisory agencies, including the NCUA, to assess their technological vulnerabilities, and for other purposes. NCUA’s technology investments should be cost-effective and aim to reduce the cost of supervision, but America’s Credit Unions remains concerned that expensive new information technology systems without a pressing need could inadvertently increase NCUA’s outlays;
- Model Risk Management Modernization Act, which would require clarification and modernization of certain risk management model guidance. America’s Credit Unions has some concerns with the bill, as it compels creation of regulatory guidance to govern AI model supervision; and
- Financial Services Innovation Act of 2026, which would direct NCUA and other financial regulators to establish an office of innovation. America’s Credit Unions supports NCUA establishing an innovation office, but has concerns about displacing existing innovation programs, and that consolidating them could limit options for agencies.
The hearing is scheduled to begin today at 10 a.m. Eastern and will be streamed live.