WASHINGTON—The House is being urged to keep the “playing field level” for credit unions in the event of any legislation on stablecoins in a letter sent by NAFCU to the House Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion.
Vice President of Legislative Affairs Brad Thaler expressed NAFCU’s “appreciation” for the committee’s work “in examining the integration of digital assets into traditional financial products, including the creation of stablecoins."
However, Thaler urged them to “not to unintentionally create an uneven playing field among credit unions, banks, and non-depository institutions by establishing chartering and enforcement provisions based solely on the Federal Deposit Insurance Act, with which the NCUA cannot strictly comply.”
He added that any regulatory framework for stablecoins should acknowledge the NCUA’s role as credit unions’ primary regulator.
Thaler also stated NAFCU’s opposition to the creation of a central bank digital currency (CBDC).
‘Multitude of Risks’
“NAFCU believes that any advantages of a CBDC are outweighed by a multitude of risks including those related to consumer privacy, financial stability, misallocation of Federal Reserve resources, and government intrusion into banking services traditionally provided by the private sector,” he wrote. “Whatever benefits CBDC might hypothetically provide can be achieved more reliably and with less risk using existing financial sector infrastructure, including the Federal Reserve’s soon to launch FedNow service.”