WASHINGTON–The Defense Credit Union Council has sent three letters to Capitol Hill ahead of hearings on digital assets, data privacy and more.
Ahead of a hearing titled, “A Golden Age of Digital Assets: Charting a Path Forward,” DCUC sent a letter to the Hill calling for “clear, equitable, and tailored regulations that allow credit unions—especially those serving the military community—to responsibly innovate in the digital asset space.”
“Military families deserve access to the same secure, modern financial tools as anyone else,” DCUC President and CEO Anthony Hernandez said in a statement. “With the right policies in place, defense credit unions can play a vital role in delivering digital asset services that are both safe and mission- aligned.”
Support for CLARITY Act
DCUC said it supports the CLARITY Act of 2025 for its efforts to provide structure to the digital marketplace but urges Congress to ensure that new rules don’t place an undue burden on not- for-profit, member-owned credit unions.
The organization said its specific concerns include costly Bank Secrecy Act (BSA) compliance expansions, ambiguous custodial roles, and the risk of excluding smaller institutions from fintech partnerships due to complex registration frameworks.
“Our message is clear: innovation and inclusion must go hand-in-hand,” Jason Stverak, DCUC chief advocacy officer. “Credit unions must have equal access to offer services like crypto custody or stablecoin issuance—but in a way that fits their scale, purpose, and existing oversight.”
Five Amendments
The Defense Council is recommending five key amendments to the CLARITY Act:
- Recognize the NCUA as the primary regulator for credit unions
- Provide regulatory tiering or exemptions for smaller institutions
- Require coordinated rulemaking across agencies.
- Clarify BSA/AML expectations specifically for credit unions
- Support compliance with technical assistance and funding opportunities.
Support for Two Pieces of Legislation
Separately, ahead of a House Small Business Committee hearing titled “Budgeting for Growth,” DCUC sent a letter advocating for the swift passage of the Veterans Member Business Loan Act (VMBLA) and modernization of the SBA 7(a) Loan Program to support veteran entrepreneurs.
In the letter, DCUC stressed how outdated restrictions are hindering the ability of credit unions to fully support veteran-owned small businesses—many of which struggle to access capital despite being critical to the American economy.
“Veteran entrepreneurs embody the same values they demonstrated in service—leadership, resilience, and innovation. They deserve more than just gratitude; they deserve access to the tools needed to thrive,” Hernandez said in a statement. “Passing the Veterans Member Business Loan Act would immediately unlock new sources of capital and help grow businesses that strengthen communities and create jobs.”
Nearly 2-Million Enterprises
DCUC noted veteran-owned businesses represent 1.76 million enterprises across the U.S., generating nearly $1 trillion in revenue and employing more than five-million Americans.
“Yet, these businesses are more likely to face loan denials, credit limitations due to military service, and financial vulnerability from reliance on personal savings,” DCUC said.
The DCUC letter also highlighted the need to lift the member business lending (MBL) cap.
“Credit unions serving veteran communities are ready to do more—but their hands are tied by an arbitrary lending cap that doesn’t reflect market realities or member needs,” Stverak said in a statement. “By exempting veteran-owned businesses from this cap and streamlining SBA programs, Congress can give our veterans the opportunity to build, grow, and lead in the civilian economy.”
In addition to calling for the passage of H.R. 4867/S. 539, DCUC urged lawmakers to modernize SBA lending programs and ensure regulatory fairness that enables credit unions to compete on equal footing with other financial institutions.
Letter on Data Privacy
Ahead of a hearing today in the House Financial Services Subcommittee, DCUC sent a letter urging lawmakers to craft balanced data privacy legislation that protects consumers—especially military families—”without imposing conflicting or duplicative compliance burdens on credit unions.”
It also warned against legislative provisions that could undermine existing financial regulatory frameworks such as the Gramm-Leach-Bliley Act (GLBA).
“Credit unions are already held to some of the highest data privacy and security standards in the financial sector,” Hernandez said in a statement. “Any new legislation must recognize those existing safeguards while avoiding unintended consequences—such as overlapping laws, inconsistent state regulations, or legal exposure through a private right of action. Our priority is protecting the privacy of service members, not diverting resources into unnecessary litigation.”
Key Priorities
DCUC’s letter outlined several “key priorities,” including:
- Reserving the protections already embedded in GLBA and HIPAA
- Ensuring strong federal preemption to avoid a patchwork of state laws
- Applying privacy standards equally across all entities that collect or process consumer data—not just financial institutions.
DCUC’s statement also voiced concern over proposals to introduce a private right of action, warning that it could lead to frivolous lawsuits that threaten the financial health of compliant credit
New Member of DCUC
Separately, DCUC reported that Suncoast CU, Florida’s largest credit union, has joined the organization.
“At Suncoast, our mission has always been to improve the lives of our members and the communities we serve. We are proud of our continued growth and excited for the opportunities ahead as we remain focused on delivering exceptional value, innovation, and service, especially to those who serve or have served our country” SCU President and CEO Kevin Johnson said in a statement.
“We are excited to welcome Suncoast Credit Union to DCUC’s membership. Their commitment to financial wellness, community support, and member-first service reflects the best of what credit unions stand for, and we look forward to championing their dedication as they serve their military and defense communities in Florida,” added Anthony Hernandez, DCUC president/CEO, in a statement.
