Policies needed to allow credit unions to responsibly offer digital asset services

A hearing on digital assets scheduled in the Senate Banking Committee provided another opportunity to advocate for credit unions’ ability to offer digital assets services. America’s Credit Unions President/CEO Jim Nussle wrote to the Digital Assets Subcommittee members in advance of the Feb. 26 hearing at 2:30pm Eastern Time.

“The credit union movement recognizes the growing need for digital asset services and advocates for policies that allow credit unions to responsibly offer these services while safeguarding member interests,” the letter reads. “Key priorities include securing custodial authority for stablecoins, ensuring compatibility with credit union structures, and addressing uncertainties around reserve deposits and rehypothecation.”

In the letter, Nussle noted that America’s Credit Unions supports the framework in the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act (S. 394), which properly identifies the appropriate subsidiary entity for a credit union as a credit union service organization (CUSO). The House’s discussion draft of its stablecoin legislation does so as well.

The letter also asks Congress to:

• Consider limiting the role of foreign deposits and foreign central bank money as categories of reserves; and
• State clearly that credit unions are authorized to perform all the activities listed as “incidental powers” in Section 13 of the GENIUS Act respectively as incidental powers.

Nussle previously met with members of the House Financial Services Committee on its pending stablecoin legislation.

Read the full letter here.