WASHINGTON–Both credit union trade groups are expressing support for a new bill in Congress that would block the Internal Revenue Service’s access to taxpayers private transaction information. Separately, CUNA is also calling on Congress to put an effective regulatory framework in place for cryptocurrencies.
The new bill, the Prohibiting IRS Financial Surveillance Act, was introduced by Sens. Tim Scott (R-SC) and Mike Crapo (R-ID). The legislation has 29 other co-sponsors.
As CUNA noted after the bill was introduced, “Credit unions and their members engaged in a vigorous grassroots effort against the 2021 proposal to direct the IRS to collect private transaction data of virtually every consumer in the U.S. As written, the legislation prohibits such requirements from being established.
CUNA said it “strongly supports” the new bill.
In expressing its support, meanwhile, NAFCU said the legislation would “protect consumers and their financial institutions from IRS overreach and a burdensome reporting regime.”
“NAFCU thanks Senators Scott and Crapo and Representative Ferguson for reintroducing important legislation to protect consumers from invasive IRS surveillance of their financial data that could compromise their privacy," said NAFCU Senior Vice President of Government Affairs Greg Mesack. “The Prohibiting IRS Financial Surveillance Act has broad support as Americans have made it clear the government should not be tracking their daily finances. We look forward to working with lawmakers to get this legislation enacted this Congress.”
Support for Crypto Oversight
Meanwhile, with research showing credit union members are more than twice as likely as non-members to invest in crypto, CUNA has told the Senate Banking, Housing, and Urban Affairs Committee the nation’s CUs are prepared to do more, but a better regulatory framework needs to be in place.
In a letter sent to the committee ahead of a hearing, CUNA said the “significant impact” of cryptocurrencies on the financial sector and the overall economy cannot be denied.
The trade group stated its research shows that credit union members are more than twice as likely than non-members (39% to 16%) to engage with cryptocurrencies, and that more than 59% of credit union members between 18 and 34 are engaged.
“Credit unions are already engaged and helping their members participate in this nascent industry by partnering with third parties to provide buy, hold, and sell services to their members, utilizing distributed ledger technology to improve business operations, and counseling members on financial decisions related to crypto assets but they can do more,” the letter reads.
Recommendations Offered
CUNA also told the committee:
- The digital assets marketplace demands a comprehensive regulatory framework that provides consistent oversight for consistent products and services
- Digital assets services through credit unions provide an entry point for the unbanked and underbanked to receive quality, reliable financial services
The letter cites CUNA’s supports for the “whole of government” approach outlined by President Joe Biden’s Executive Order in March.
Earlier this week NAFCU outlined its stance on cryptocurrency regulation.
It’s Called Fresh for a Reason. And We Offer Home Delivery. For Free!
The biggest, best and freshest news reporting in credit unions remains free in ’23! Each morning CUToday.info delivers its daily Fresh Today news update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more.
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance you didn’t know was coming.
And did we mention it’s free?
Please note and/or make your IT department or email administrator aware the emails will be coming from the domains CUTodayinfo.com and CUTodayinfoReply.com