WASHINGTON—In what’s been dubbed “Crypto Week” in Washington, credit unions are being joined by banks, fintechs, investors and others in anticipating Congress will enact several crypto-related pieces of legislation this week that include provisions that would give credit unions new authorities. 

The Digital Asset Market Clarity Act (Clarity Act) and the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act) are both to be taken up in the House. Both seek to create a regulatory framework for stablecoins. The GENIUS Act has already passed the Senate.

In addition, the House is also voting on the Anti-CBDC Surveillance State Act, primarily sponsored by Rep. Tom Emmer (R-MN), which seeks to block the issuance of a retail central bank digital currency (CBDC), also known as a digital dollar.

The credit union trade groups support all three pieces of legislation.

‘Pretty Momentous’

Greg Mesack, SVP advocacy with America’s Credit Unions, called the crypto-related bills “pretty momentous,” and noted the legislation gives credit unions parity with banks when it comes to stable coins. That includes issuing the coins and managing them and, “most importantly,” stated Mesack, the bills require the NCAA to create rules to give credit unions the authority to custody digital assets on behalf of their members.

“We think it’s important. That’s authority banks have had and credit unions have been at a competitive disadvantage,” said Mesack. “It’s important for us and for credit unions to have that parity, to have that ability to offer comparable services to banks. Members want modern experiences and modern services from their financial institutions and credit unions.”

Clarity Around Clarity

Mesack noted the Clarity bill is an even larger bill in that it deals with all types of digital assets and seeks to create a structure around them.

“Generally, America’s Credit Unions has been supportive. We think it’s important to have consumer protections and safeguards in place and have clear rules of the road and regulatory authorities so that we can protect consumers, but also have a vibrant market that’s innovative,” Mesack said.

Given the general bipartisan support for the crypto bills, Mesack said he expects passage. A spokesperson for the Defense CU Council expressed a similar forecast during a call with the media.

CBDC Bill

When it comes to Rep. Emmer’s anti-CBDC legislation, Mesack said the trade group has long supported such a prohibition, calling a CBDC a “bad idea.”