WASHINGTON–Here is a rundown on other issues, hearings and matters credit unions are watching in DC this week, on issues that include digital assets, passage of “trigger” legislation, concerns over the tax exemption (again), an interesting AI-related development, and more.
The Need for Speed
With a hearing before a Senate subcommittee today titled, “Exploring Bipartisan Legislative Frameworks for Digital Asset Market Structure,” the Defense Credit Union Council said it is urging its member CUs to get up to speed on the subject of digital assets.
As the CU Daily has reported, DCUC has already sent several letters to the Hill in support of the GENIUS Act in the Senate and Clarity Act in the House urging that credit unions be able to participate in any new digital assets marketplace.
But individual credit unions also need to do their part, according to Jason Stverak, chief advocacy officer with the organization.
“We’ve been telling our credit unions that the future is now and they need to start planning for, addressing and preparing for the framework that is being built for digital assets as a financial tool for the American economy,” he said.
Support For ‘Trigger’ Act
Following House passage of data privacy legislation for homebuyers, America’s Credit Unions sent a letter to the Hill in support of the bill.
“Consumers looking to purchase a home deserve to have their privacy respected and their data secured. We thank the House of Representatives for protecting the privacy of homebuyers by passing the Homebuyers Privacy Protection Act (H.R. 2808),” wrote ACU President and CEO Jim Nussle “Stopping the abusive use of trigger leads will allow consumers to seek lending from their trusted credit unions without the fear of their data being sold off or receiving unsolicited callsseeking to lure them away from their trusted lender. We urge Congress to quickly reconcile the House and Senate versions and get the bill to the President to sign into law and further protect consumers seekingtheir American Dream.”
Concerns Over Tax Exemption (Again)
After relaxing in relief last week that the credit union tax exemption had survived in the big reconciliation bill, credit unions may not be holding their breath in Washington but they are breathing a bit more nervously this week after the Senate Parliamentarian disqualified numerous measures, including the elimination of funding for the CFPB and other regulatory agencies.
“That leaves us with a lot more uncertainty,” said DCUC’s Stverak. “We have been continually pushing the issue to make sure it’s from and center.”
With Senate Republicans looking for any revenue they can find, tax exemptions such as those enjoyed by credit unions may again become part of the conversation, although Washington sources say it is unlikely.
As Stverak also confirmed, Senate Republican leadership has said it plans on working through the weekend as it attempts to meet a self-imposed July 4 deadline for completing the reconciliation bill.
An AI-Regulation Issue That is Part of Broader Debate
Separately, during a call with the media, Carrie Hunt, chief advocacy officer with America’s Credit Unions, observed that one provision within the Senate version of the reconciliation bill is language that would prohibit state and local governments from regulating artificial intelligence (AI) for a period of 10 years.
“We will see if that that survives the final version of legislation…but I thought that was interesting as we continue down this debate of should states have the ability to act on certain things versus the federal government,” Hunt observed. “Clearly, we’ve seen the CFPB under the direction of acting director (Russell) Vought punt some issues back to the states. At the federal level we are seeing the president consolidate or attempt to consolidate more power in the office of the president, so there are a lot of issues relative to federalism going on right now.”
Thank You Letter to U.S. Senate
America’s Credit Unions reported it delivered a letter to the U.S. Senate on behalf of more than 750+ credit union presidents and CEOs to thank them for their leadership and to urge the Senate to continue to protect credit unions’ tax status ahead of the floor vote on the One Big Beautiful Bill.
“On behalf of America’s roughly 4,500 credit unions, we write to extend our gratitude for your commitment to the American people. We know that each of you has America’s best interests at heart and want each American to have the opportunity to succeed,” the letter reads. “To be productive. To be fulfilled. To realize their potential. And when that happens, America becomes stronger.”
Unitus Community CU Joins DCUC
The Defense CU Council said it has added Unitus Community Credit Union as its newest affiliate member.
“We’re incredibly honored to be the only Oregon-based credit union to be a member of the Defense Credit Union Council,” UCCU President and CEO Steven Stapp said in a statement. “At Unitus, we’ve always believed in the power of community and service—and this new partnership is a natural extension of that commitment. We’re excited to stand alongside fellow DCUC member credit unions who are making a difference in the lives of military, veteran, and their families.”
