WASHINGTON–With Congress in session this week and hoping to head home for Easter recess—which is not a guarantee–credit unions are invested in the progress of several pieces of legislation, but primarily the 21st Century ROAD to Housing Act, and the CLARITY Act.
Rep. Maxine Waters is requesting a conference committee on the House and Senate housing legislation (see related story).
Jason Stverak, chief advocacy officer with the Defense Credit Union Council, said the trade group’s position is if the legislation is being opened for discussion that other credit union priorities also be included, such as legislation related to NCUA’s Central Liquidity Facility, the veterans MBL bill, the Board Modernization Act and a bill related to loan maturities.
How the credit union-favored legislation might fare and what the broader timeframe for the legislation are uncertain once Congress returns from recess, said Stverak.
“We expect the goal is to finalize the bill during the upcoming recess period and move toward passage in April or before Memorial Day,” said Stverak. “DCUC has raised concerns about the potential inclusion of community bank regulatory relief without corresponding credit union reforms. DCUC is actively engaging with lawmakers to ensure parity and inclusion of credit union priorities in any final package”
Greg Mesack, SVP-advocacy with America’s Credit Unions, said the trade group is also actively monitoring the ROAD to Housing Act, and believes there is plenty of time to get the bill done.
Getting CLARITY
The other priority for credit unions is the Digital Asset Market Clarity Act (CLARITY) Act.
“Obviously, we have communicated to the chambers on multitude of occasions the need to include credit unions as part of the structure and they’re moving forward,” said Stverak.
Stverak added that following recent news reports related to regulatory reforms for banks being added to legislation before Congress, DCUC has also called for discussion of credit union reforms, as the CU Daily has reported.
Overcoming a Hurdle
A significant hurdle toward passage of the CLARITY Act has to do with dispute between the banking and crypto industries around paying yields on stablecoins, with the financial industry opposed and the crypto industry in favor. around stablecoin yield,
Politico reported that the bill, which has been stalled in committee, may find a way out following an agreement between Sen. Thom Tillis (R-NC), Sen. Angela Alsobrooks (D-MD) and the White House.
“Sen. Tillis and I do have an agreement in principle,” Alsobrooks said in an interview with Politico. “We’ve come a long way. And I think what it will do is to allow us to protect innovation, but also gives us the opportunity to prevent widespread deposit flight.”
‘Deal Can be Found’
“I do believe that at the end of the day they can find a deal on this,” said Mesack of the crypto legislation. “While there are some substantial differences between them, they’re not irreconcilable differences. There’s nothing that’s there that can’t be solved between the two chambers…We heard rumblings about maybe there’s getting to a deal on the yield issue and the market structural legislation the Senate version of the clarity so we’ll see how that
Added DCUC’s Stverak, “We’re going to be in a full-court press to ensure that as this legislation is moving, especially these must-pass bills, that credit unions are not left off the table and that we are included and at the table as these negotiations move forward.”
The DHS Funding Issue
Meanwhile, with the impasse remaining over funding the Department of Homeland Security—with Democrats refusing to support any measure without reforms being made to ICE—Stverak said DCUC is concerned over the potential for language to be inserted related to the credit union tax exemption should a deal be reached.
“As these discussions are starting and moving forward and this reconciliation bill takes shape, we are making sure that they do not include discussions on the credit union tax status as a part of it and we’re monitoring,” Stverak said.
Card Act Still Being Shuffled
Finally, the other bill credit unions always have one eye on is the Credit Card Competition Act, which continues to float around on Capitol Hill in search of another piece of legislation to carry it. While it has failed to find a home to date, Stverak said one of its primary sponsors, Sen. Dick Durbin (D-IL) has years upon years of Senate experience and knows the rules to be able to have something inserted.
“He is a formidable opponent. Nobody expected him to get Durbin 1.0 put in on debit cards, so I think many people are hyper vigilant on this,” he said.
The SAVE Hurdle
There is also another complication to watch in the progress of bills on Capitol Hill, which is the Safeguard American Voter Eligibility (SAVE America) Act, which requires voters to provide documentary proof of citizenship at the time of registration and a photo ID at the time of voting. The SAVE America Act was passed by the House in February and President Trump has made it a priority.
Mesack noted Trump has rejected plans to prioritize other efforts, including funding DHS, until the SAVE America Act moves forward. And the president is saving a stick, he pointed out.
“On top of everything, the president has asked (congressional leadership) to stay in town if for some reason they can’t find a deal on DHS funding,” Mesack said. “They may have to give up the planned two-week recess…That would certainly change the tone. Taking away recess has always been one of the most powerful motivators in all of Congress, so we’ll see if that plays out again this time.”
Poop in a Group
When it comes to funding DHS, the most visible sign of the impasse is the long security lines at airports as TSA employees call in sick, as they are currently not being paid. Asked by the CU Daily during a media call whether Americans have become somewhat fatigued by full and partial government shutdowns, and whether the pressure being felt or not felt by Congress will alter the fate of any funding bill, Stverak said he agrees the public has grown tired of it.
“I think for many people it’s like my mother would say, ‘Why can’t they get their poop in a group? Why can’t they get this done’,” observed Stverak. “I think people do start to tune it out unless it is directly impacting them, unless they’re not getting a paycheck or their cousin is not getting a paycheck…There’s also fatigue in Congress and with congressional staff….Shutdowns are just becoming more and more expected and…that that’s scary that it’s become more normalized.”
Standing Up
Stverak noted how news reports have shown members of the Coast Guard working without pay as they rescued flood victims in Hawaii over the weekend, which only adds to the reasons the Defense Council wants to see Congress take action and provide funding.
“As we say, ‘When Congress stands down, credit unions stand up, but the generosity and support from credit unions to serve their memberships is not a replacement for a paycheck on a continual basis by Congress.”
