WASHINGTON — The Defense Credit Union Council (DCUC) is urging Congress to press federal regulators on a range of issues affecting military-serving credit unions, including liquidity support, regulatory burden, financial innovation and federal preemption of state interchange fee laws.
In a letter submitted for the record ahead of a House Financial Services Committee hearing Thursday titled “Oversight of Prudential Regulators,” DCUC said lawmakers should examine the impact of National Credit Union Administration policies on credit unions that serve servicemembers, veterans and military families around the world.
The trade group said the hearing presents an opportunity for committee members to seek additional information from Kyle Hauptman on several issues it views as critical to the credit union industry.
‘Consequential Priorities’
“Recent public materials from the NCUA show that the agency is focused on risk-based supervision, Share Insurance Fund stability, responsible innovation, and a deregulatory review of outdated or unnecessarily burdensome rules,” DCUC Chief Advocacy Officer Jason Stverak said in the letter. “Those are consequential priorities for the institutions our members operate and for the servicemembers, veterans, and military families they serve.”
Among the issues highlighted by DCUC was what it said is the need for greater clarity surrounding federal preemption for federal credit unions facing state interchange fee restrictions, including the Illinois Interchange Fee Prohibition Act. The organization said lawmakers should ask NCUA whether it plans to pursue regulatory or legal action before similar legislation is enacted in other states.
Call for a Stronger CLF
DCUC also called for discussion on strengthening the Central Liquidity Facility, reducing unnecessary regulatory burdens, maintaining risk-focused supervision and ensuring credit unions have opportunities to participate in emerging payment systems and stablecoin markets.
“Congressional oversight plays a critical role in ensuring that regulation keeps pace with a rapidly evolving financial landscape,” DCUC President and CEO Anthony Hernandez said in a statement. “DCUC appreciates the Committee’s attention to these issues and encourages a constructive dialogue that promotes innovation, operational flexibility, and regulatory certainty for credit unions serving our Nation’s military communities.”
The letter was submitted as the House Financial Services Committee conducted its oversight hearing on federal prudential regulators, including the NCUA. DCUC said the outcome of those discussions could have significant implications for credit unions serving military communities and their members.
