WASHINGTON–Fresh off a victory in ensuring the language revoking the credit union tax exemption wasn’t included in H.R. 1, America’s Credit Unions says it is now working to lay the “groundwork for the important advocacy agenda to come.”
America’s Credit Unions, which reported more than 800,000 messages were sent to Congress as part of its “Don’t Tax My Credit Unions” campaign, said the legislation that now has much of its focus is the GENIUS Act, which it supports, but with a big caveat.
The Guiding and Establishing National Innovation for U.S. Stablecoins Act is designed to support a legal framework for the issuance of stablecoins in the U.S. Stablecoins are crypto coins that are tied to a fiat currency, such as the U.S. dollar.
It’s an amendment to the GENIUS Act that could reverse that support if it is indeed attached.
‘Parity Needed’
“In general, America’s credit unions is supportive of this new federal framework to regulate the issuance of stablecoins,” said Chief Advocacy Officer Carrie Hunt. “We do think that credit unions need parity, and if banks are getting authority we certainly need to position credit unions to be forward-thinking and responsive to the needs of their members.”
Hunt, who noted the legislation is the first in eight years to come out of the Senate Banking Committee and be considered on the Senate, pointed out the legislation’s popularity has also made it a vehicle for a lot of other financial services-related amendments, specifically, the Credit Card Competition Act. That legislation, which is just as strongly supported by retailers and merchants as it is opposed by financial institutions, applies to FIs of more than $100 billion in assets, but many analysts say it will have the effect of lowering interchange for all financial institutions.
“We have expressed our opposition to the Senate,” Hunt said of the CCCA, which is co-sponosred by Sens. Roger Marshall (R-KS) and Dick Durbin (D-IL). “It remains to be seen how they will address amendments post-recess.”
Hunt said there are numerous senators who are threatening to vote against the GENIUS Act if it includes “poison pill” amendments like the CCCA. She added that tyoe of scenario creates incentives to find “some level of agreement.”
DCUC Objects
“The CCCA threatens to weaken financial protections for those who serve our country, all while enriching large retailers that are unlikely to pass savings to consumers,” Defense CU Council President/CEO Anthony Hernandez said in a statement. “Our member credit unions remain committed to defending the financial well-being of their communities and we will continue to highlight the risks these type of proposals bring to the integrity of the payment ecosystem.”
Opposition to Rate Cap
America’s Credit Unions and the DCUC are also opposed to an amendment from Sen. Josh Hawley (R-MO) that would cap credit card interest rates at 10%.
“The proposed cap could restrict credit access for those who need it most,” Jason Stverak, chief advocacy officer with the DCUC, said in a statement. “We’re advocating for policies that support—not limit—responsible lending by credit unions.”
Other Issues
Other points made by Hunt during a call with the media:
- America’s CUs is working on having several other bills introduced in this session of Congress, although she declined to identify the focus.
- In follow-up to a meeting with Treasury, Hunt said there has been additional productive conversations on the issue of fraud.
