WASHINGTON—Both CUNA and NAFCU have weighed in on a Treasury request for feedback on the development of digital assets.
In its letter to Treasury, NAFCU Senior Counsel for Research and Policy Andrew Morris told Treasury, “Concerning private sector digital asset regulation, the letter incorporates what NAFCU has conveyed in prior comments to the NCUA and Congress by offering several high-level principles to incorporate in any future framework.”
According to NAFCU, those principles include:
- A level playing field for credit unions, banks, and other financial companies seeking to engage with digital asset technologies
- The application of consumer protection laws to entities facilitating consumer engagement with digital assets
- Support for responsible innovation within the credit union industry
Morris also asked Treasury to clarify that references to insured depository institutions included in the President’s Working Group on Financial Markets’ Report on Stablecoins are inclusive of federally insured credit unions.
Costs Outweigh Benefits
With respect to the RFC’s solicitation for input on a CBDC, Morris emphasized NAFCU’s position that the costs would outweigh the benefits.
“Given the lack of clarity regarding specific CBDC parameters and design features, NAFCU does not believe that sufficient evidence exists to justify development of a CBDC, particularly when better alternatives for achieving the same purported benefits already exist,” wrote Morris. “Credit unions are well positioned to improve underserved populations’ access to affordable financial products and their efforts do not depend upon the introduction of a CBDC.”
CUNA: ‘New Opportunities’
Meanwhile, CUNA told Treasury digital assets represent new opportunities for consumers and credit unions, and that it supports a “whole-of-government” approach to the issue, as outlined in President Biden’s March executive order on the subject.
“Credit unions have a long history of serving their members in a direct, individualized way that encourages their financial health and well-being,” the letter reads. “Innovations related to digital assets provide a new and unique avenue for credit unions to continue this mission with a significant percentage of their members already invested in cryptocurrencies.”
Additional Points Raised
CUNA added that several steps could aid in increased adoption of digital assets:
- A comprehensive regulatory framework that provides consistent oversight for similar products and services
- Clear data security and data privacy requirements
- A level playing field between traditional financial services and fintechs to ensure consumers are able to utilize their most trusted financial partner
CUNA also stated digital assets can provide an entry point for the unbanked to receive safe, affordable financial services, but added that credit union services go far beyond deposit accounts.
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