WASHINGTON–In his prepared before the Senate Banking Committee, NCUA Chairman Kyle Hauptman said credit unions are healthy and in the agency is in the process of both rightsizing itself as well as regulations.
After stating the CU system is doing well, Hauptman said the agency now has a policy of no regulation by enforcement, although he noted NCUA has had a “good track record” in that area.
“After all, it is counterproductive for a deposit insurer to engage in regulation by enforcement against the same people that we insure,” said Hauptman. “This new policy states that an enforcement action should never set policy and that enforcements don’t take the place of rulemaking or guidance; that fines and press releases aren’t how the public is supposed to find out what is or what isn’t a violation. The NCUA’s new policies are just basic American fairness and it’s how most people think our government should operate. For example, every senator on this committee expects that in America or any free society the sequence of events is supposed to be that you first set speed limits, then give out speeding tickets. But with financial regulation that has not always been the case.”
Deregulation Project Cited
Hauptman told the committee NCUA’s focus has been on “rightsizing” the agency and on capitalizing on opportunities created by the administration to “foster innovation as a first priority.”
Hauptman shared that NCUA in December 2025 introduced its Deregulation Project as part of a “long-term initiative aimed at meticulously reviewing and revising regulations to remove any that are obsolete, duplicative, intended to be guidance or just unduly burdensome. It’s a spring cleaning of sorts. It’s something that’s necessary at any monopoly government agency where the pile of regulations and paperwork grows ever higher with little regard for cost.”
Hauptman said NCUA has also moved to act in accordance with the GENIUS Act and has proposed rules around cryptocurrencies and stablecoins.
“Beyond the consumer benefits, stablecoins are a golden opportunity to stimulate demand for U.S. Treasuries to keep borrowing costs manageable and to retain the U.S. dollar’s status as the global reserve currency,” said Hauptman.
Question on Board Modernization Act
Hauptman faced one specific question during the hearing. Sen. Lisa Blunt Rochester (D-DE) asked the NCUA chairman about the Credit Union Board Modernization Act, of which she is a cosponsor, and whether he believes the bill is a “good idea.”
Hauptman responded by saying he does believe it’s a good idea, saying it’s “odd” that federal credit unions are held to a standard—that the board meet every 30 days—that NCUA and Congress itself are not held to.
Later, in response to a question posed to all the witnesses over whether the institutions they regulate have seen a deposit flight due to crypto or stablecoin investments, Hauptman joined the others in saying no.
