WASHINGTON—The Senate and House are both in session in a busy week that includes a great deal of legislation that impacts credit unions.
Defense Credit Union Council Chief Advocacy Officer Jason Stverak noted that House Financial Services Chairman French Hill (R-AR) has dubbed the upcoming business days “Crypto Week.”
“There is significant legislation on digital assets expected to move on the House floor, including the GENIUS Act, which has already passed the Senate, and the Clarity Act—the House’s proposal to establish a regulatory framework for digital assets within the U.S. financial system, and a bill that targets central bank digital currency initiatives,” Stverak said, adding that as the House begins its markup of the National Defense Authorization Act that DCUC is advocating for a clean, mission-focused defense bill.
Dodd-Frank Act Review
The House Financial Services Committee will hold a hearing Tuesday marking the 15-year anniversary of the Dodd-Frank Act.
“The committee plans to review and likely advance a large package of Dodd-Frank-related bills, many focused on deregulation,” Stverak said. “We strongly support this effort. It’s time to ask: Do these regulations still serve their purpose? Is there a more efficient way to achieve the same goals? Can’t we just trust credit unions to continue serving their members without unnecessary burdens? We’re encouraging both the House and Senate to continue re-examining and rolling back outdated or overly burdensome regulations.”
America’s Credit Unions SVP of Advocacy Greg Mesack, too, expects the week to be hectic, noting ACU will be heavily engaging with staff on Capitol Hill.
“It's a fast start,” Mesack said. “More like a 100-meter sprint than a warm-up, with three major bills on deck.”
Mesack also cited the three bills that will garner a great deal of ACU’s attention this week: the GENIUS Act, the Clarity Act, and Emmer’s bill on CBDCs.
Mesack pointed out that While Dodd-Frank was a response to the financial crisis—and the crisis exposed real flaws in regulation—the law went far beyond addressing those immediate problems.
He explained that in the years since, credit unions have been disproportionately impacted by:
- Onerous and complex regulations
- The Durbin Amendment, “Which has been particularly damaging”
- “Crushing” compliance costs, which have diverted resources away from serving members
“The result? Fewer credit unions, higher operational costs, and ultimately fewer affordable financial services for members,” Mesack said. “We believe it's time to assess what Dodd-Frank has done, what’s working, and what needs reform. Small burdens add up to big consequences for credit unions and the communities they serve.”