WASHINGTON–The House Financial Services Committee passed has passed the credit union-supported the CFPB Transparency and Accountability Reform Act (H.R. 2798), while the SAFE Banking Act has been reintroduced in both the House and Senate.
With the CFPB-related legislation, both credit union trade associations have been expressing support for various aspects of the bill.
CUNA had written earlier this week in support of the bill, which contains several titles that would make CUNA and league-supported changes to the Consumer Financial Protection Bureau (CFPB).
“This package contains important provisions to modernize the CFPB while improving accountability and transparency that would benefit consumers and provide stability to the financial services marketplace,” said CUNA Deputy Chief Advocacy Officer Jason Stverak. “We thank the committee for moving it forward and CUNA, Leagues, and credit unions will continue to engage members of Congress on this much needed legislation.”
Support for Specifics
Specifically, CUNA said supports titles that would:
- Replace the CFPB’s single director with a Senate-confirmed, bipartisan commission.
- Fund the CFPB through the appropriations process.
- Require the CFPB to publish a cost-benefit analysis and other data for any proposed rulemaking.
- Repeal section 1071 of the Dodd-Frank Act (which requires data collection on specific lending criteria).
Opportunities Missed
“The CFPB has missed many opportunities to leverage credit unions’ mission and history to the benefit of consumers and finalized regulations that ultimately hampered credit unions and their members,” the CUNA had stated in a letter to the committee ahead of the vote. “Consumers lose when one-size-fits-all rules force credit unions to pull back safe and affordable options from the market, pushing consumers towards predatory entities engaged in the very activity the CFPB’s rules were designed to curtail.”
SAFE Act Reintroduced
Meanwhile, another piece of CU-backed legislation has again been dropped in Congress after a bipartisan group of federal lawmakers reintroduced the Secure and Fair Enforcement (SAFE) Banking Act in the House and Senate.
Originating sponsors include Sens. Jeff Merkley (D-OR) and Steve Daines (R-MT) and Reps. Dave Joyce (R-OH) and Earl Blumenauer (D-OR). Similar to the legislation that was introduced in earlier sessions of Congress before failing to pass, the bills would provide protections for financial institutions serving cannabis-based businesses where it is legal.
An additional 38 Senators and eight House members cosponsored the bills upon introduction.
“This legislation provides safe, mainstream options for state-legalized businesses to conduct their financial needs,” said CUNA President/CEO Jim Nussle. “We appreciate Senators Merkley and Daines, and Representatives Joyce and Blumenauer, for introducing this bipartisan legislation in both chambers, and will work to advance the bills this Congress.”
An additional 38 Senators and eight House members cosponsored the bills upon introduction.
Also issuing statements of support:
- “We appreciate the steadfast leadership and long-time support of Sen. Merkley and Rep. Blumenauer as they work together to advance legislation that will allow financial institutions to serve legal cannabis businesses,” said Troy Stang, president/CEO of GoWest Credit Union Association. “We greatly appreciate the many members of Congress in the GoWest delegation who have co-sponsored and worked diligently to promote SAFE Banking, as this is a critical public safety issue for our communities, and this is common sense legislation.”
- "We would like to express our gratitude to Senator Daines for his leadership in advancing this critical legislation. As credit unions, we prioritize our support for individuals and communities,” said Karen Smith, SVP and chief advocacy officer of Montana’s Credit Unions. “The SAFE Act not only facilitates secure transactions for businesses throughout Montana, but also helps to ensure the financial security of employees by providing a reliable platform for cash and payroll deposits."
- “Legal cannabis related businesses need access to safe and affordable financial services,” said Ohio Credit Union League Chief Advocacy Officer Emily Leite. “We appreciate Representative Joyce reigniting the SAFE Banking Act to provide necessary safeguards so credit unions seeking to assist underserved legal cannabis businesses can do so compliantly and confidently.”
Explicit Safe Harbor
CUNA noted the two bills are identical to previously introduced versions of the SAFE Banking Act, which passed the House seven times with strong bipartisan support, with one addition.
“This version explicitly extends safe harbor to Community Development Financial Institutions (CDFI) and Minority Depository Institutions (MDI) to ensure they can also serve legal cannabis-based businesses,” stated CUNA, noting it has supported the legislation from the beginning and has testified in favor of it before Congress.