WASHINGTON–Ahead of a hearing today, the House Committee on Financial Services Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence has released a discussion draft of a bill to establish a regulatory framework for digital assets in the United States. 

Credit unions groups have responded by saying there are monitoring the draft legislation and by sending a letter ahead of the hearing outlining what they say are the “priorities” they want to see in the legislation.

“Regulatory clarity is long overdue in digital asset markets,” said Committee Chairman Bryan Steil (R-WI) in a statement. “Today marks the first step in advancing a comprehensive framework that protects consumers, fosters innovation, and closes regulatory gaps in oversight.  It will give digital asset developers and users the certainty they need and have asked for…“The golden age of digital assets is here…Our discussion draft aims to keep America at the forefront of financial innovation and global competition, while protecting consumers from fraud.”

America’s CUs Responds

In response to the draft, America’s Credit Unions’ chief advocacy officer, Carrie Hunt, said in a statement, “Our priority throughout the discussion of digital assets legislation has been ensuring that all the various proposals treat credit unions equally with other financial institutions, ensuring our members have the opportunity to take advantage of new emerging technologies and products. We are reviewing this proposal to ensure it meets that requirement.”  

DCUC IDs Four Priorities

Ahead of the hearing the Defense Credit Union Council sent a letter stressing what it said is the need for regulatory clarity, consumer safeguards, and the inclusion of credit unions in shaping digital asset policy.

The Defense Council said there are  four key priorities it believes Congress needs to consider as it considers digital asset legislation:

Clear & Consistent Regulatory Frameworks

“Credit unions need regulatory clarity and consistency across federal agencies and states to confidently integrate digital assets into their services,” DCUC wrote. “Currently, we operate in a regulatory gray area – for example, the National Credit Union Administration (NCUA) has not yet issued uniform guidance on how credit unions may lawfully engage with digital asset products. Fragmented rules make it difficult to proceed safely. 

“We urge Congress to support clear, harmonized guidelines that enable credit unions to innovate while maintaining compliance,” the letter continues. “This includes encouraging the NCUA to establish explicit guidance on permissible digital asset activities (such as custody, payments, or lending with digital assets) and ensuring credit unions are not left behind due to regulatory uncertainty. Consistent rules will provide the certainty needed for long-term investments in new technologies and will level the playing field between credit unions and other financial institutions.”

Consumer Protection & Servicemember Safeguards

“DCUC’s top priority is protecting our members – especially servicemembers and veterans – from fraud, predatory practices, and undue financial volatility,” DCUC stated. “The digital asset market remains highly volatile and, as recent history shows, has been plagued by fraud and illicit activities, which can target military families who may be less familiar with these emerging products. We believe strong consumer protection standards must underpin any expansion of digital asset usage. This means clear anti-fraud measures, anti-money-laundering (AML) rules, and robust oversight of digital asset platforms to prevent scams. Servicemembers and their families often fall prey to bad actors promising quick gains from cryptocurrencies or tokenized investments; protections should be in place to shield them. 

“We also support tailored financial education for military communities about digital assets’ risks and benefits. In short, innovation should not come at the cost of exposing consumers to harm – safety and soundness are paramount,” the letter continues. “By ensuring prudent safeguards (such as rigorous know-your-customer standards and disclosures about volatility), Congress can help build trust in tokenized markets while preventing the kind of frauds that would undermine confidence.

Financial Security as a National Security Issue

“For those of us serving the defense community, financial security is directly tied to military readiness. We urge policymakers to consider the national security implications of digital asset policy,” according to the letter. “If not properly regulated, the rapid growth of digital assets could pose risks to the broader financial system or become channels for illicit finance that endanger national interests.

“Conversely, well-regulated tokenization and digital asset platforms might improve resilience and efficiency in financial markets, benefitting our economy and security,” the letter continues. “We note that stablecoins (a form of tokenized currency) illustrate both sides of this coin. On one hand, properly regulated stablecoins could provide faster, more efficient payment options for service members, particularly those deployed overseas who send money to family or conduct cross-border transactions.”

“On the other hand, without clear regulatory treatment, these innovations may introduce instability or cyber vulnerabilities. It is essential to strike the right balance. We encourage the Subcommittee to examine how uncertain regulatory treatment of new digital instruments might inadvertently affect military families (for example, if servicemembers rely on unregulated providers due to lack of credit union options),” the letter states. “By ensuring financial institutions like credit unions can safely offer regulated digital asset services, we can maintain the financial well-being of military members and, by extension, uphold military preparedness. Simply put, financial readiness underpins mission readiness, and any future framework for real-world asset tokenization should be evaluated through that lens.”

Inclusion of Credit Unions in Policy Development & Pilots

DCUC said it strongly believes that credit unions must have a seat at the table as digital asset policy is developed. 

“Our cooperative institutions have a 100-year history of prudent financial stewardship and a member-focused ethic. We urge you to ensure that credit unions are actively included in any working groups, advisory committees, or pilot programs related to digital assets and tokenization of assets,” the letter tells the committee. “Whether it’s a regulatory sandbox for testing blockchain applications or a pilot project exploring tokenized infrastructure, credit unions (including defense credit unions) should be eligible participants. Inclusion will guarantee that the unique perspectives of smaller financial institutions and the communities we serve are considered. It will also help policymakers understand operational realities: for instance, how a tokenized asset platform might interface with credit union core systems, or how to structure rules so that not only large banks but also community-based lenders can comply and compete.”