WASHINGTON–It’s going to be a crowded week in Washington with issues of interest to credit unions, beginning today.

Here’s a look at what’s happening:

Tuesday

The House is expected to vote today on a Congressional Review Act resolution that would overturn the CFPB’s overdraft rule, which puts caps on OD/NSF fees. Last week, As the CU Daily reported, last week the Senate passed S.J.Res.18, which would nullify the CFPB’s overdraft rule by a 52-48 vote. The resolution would prevent a CFPB rule that caps overdraft fees at $5 for financial institutions with more than $10 billion in assets from going into effect via the Congressional Review Act. 

A House committee had earlier passed a similar resolution, but it still must go to the full House and pass, and then get the president’s signature. The legislation has the support of the credit union trade associations.

Also today, the House Financial Services Committee is scheduled to hold a hearing titled, “Following the Money: Tools and Techniques to Combat Fraud.”

Wednesday

A mark-up is scheduled in the House Financial Services Committee on the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, which seeks to establish a framework for the issuance and operation of dollar-denominated payment stablecoins in the U.S. There is companion legislation in the Senate, the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins).  

“It came out (of the Senate) on a bipartisan vote from committee and we think there’s a chance that the bill will come out of the House of Representatives on a bipartisan vote,” said Greg Mesack, SVP-government affairs with America’s Credit Unions.  “There are some very small technical differences between them but the general structures are the same. America’s Credit Unions has been supportive of both bills. They’ve been drafted in a way that allows credit unions, if they choose, to join the stablecoin movement. We don’t know where the financial services marketplace will go, we don’t know how these products will evolve, but we want to ensure that should this become law that credit unions have the same flexibility to serve their members that banks do.”

Also in Congress

• Mark-up in Congress this week is also expected for a bill that would ban central bank digital currencies (CBDCs). 

“We’re very concerned that a central bank digital currency could disintermediate banks and credit union alike, so we are supportive of  the legislation,” said Mesack.

The CBDC Anti-Surveillance State Act bill is being led in Congress by Rep. Tom Emmer (R-MN).

• Another bill begore Congress would rollback and reform CFPB Rule 1071, which mandates that financial institutions collect and report data on small business credit applications, including those from women-owned, minority-owned, and LGBTQ+ businesses, to enhance transparency and fair lending practice. That rule has been strongly opposed by credit unions, as well, for the time it requires. 

“We’re not opposed to disclosure but they took a simple rule and made it very complex and burdensome,” said Mesack. “We think it needs to be revisited and redone in a way that achieves the goals of transparency around business funding without creating massive new reporting burdens for credit unions.”

What Else is Being Watched

Mesack said he expects the mark-ups on the legislation outlined above, along with other bills, will be lengthy. And while all of that is going on, there is also hope that the House will host a hearing on BSA/AML reforms. As the CU Daily reported here, credit unions and other FIs want to see the current $10,000 threshold for Currency Transaction Reports raised as high as $75,000 or even $100,000. 

“It was set at $10,000 in the 1970s and inflation is kind of eating away at the value of that,” said Mesack. “For smaller credit unions these CTRs can take hours, literally hours. to fill out. We firmly embrace and support necessary reporting for law enforcement purposes to prevent money laundering” but the $10,000 threshold is creating a lot of unnecessary work.

Comment Deadline

This week is also the deadline for comments being sought as part of the Make Community Banking Great Again initiative being championed by Rep. French Hill (R-AR). 

“America’s credit unions has been saying from the outset that we support these efforts but it needs to include credit unions and banks,” said Mesack. “(America’s CUs’ CEO) Jim Nussle met with Chairman Hill and discussed this and there was a lot of agreement from chairman that it’s not just community banks, it’s community banking and the concept of community financial services.”

Mesack said ACU will be providing comment.

CFPB Nominee Could be Confirmed, Or…

Credit unions are also watching the progress of the nomination of Jonathan McKernan to lead the CFPB. But given the “logjam” of other priorities in Congress, Mesack said it’s uncertain whether McKernan will be confirmed for the post.