WASHINGTON–Rep. Patrick McHenry (R-NC) offered his thoughts, insights and opinions on a range of issues to NAFCU’s Congressional Caucus here, and made it clear if the Republicans retake the House this fall, there will be “many, many, many, many” hearings related to CFPB oversight.
McHenry’s comments came during a Q&A with NAFCU President and CEO Dan Berger. Here is a look at what was discussed:
Berger: You have learned in on fintech and digital assets. What do you think about the American Data Privacy Protection Act?
McHenry: On data privacy, we have three standards in America. In health care, they believe they have the most restrictive standards with HIPPA. It’s not true. Then we have Graham Leach Bliley standards for financial services. That is the most restrictive data privacy standard in America. The third standard and that is no standard for those not in financial services and health care. Committee Republicans have also started a conversation on updating the Graham Leach Bliley to update what was analog and make it digital. We want to make sure these conversations are bipartisan and we take the time to get them right.
Berger: What role do you want the financial services committee to play in data privacy?
McHenry: I think we should be the example for the rest of society on how to do this. We have standards already and a mechanism for enforcement. We can take that basic rubric if you will and update the standards and bring in some new players, such as data furnishers. There also needs to be a standard for Americans to know what data they have control over, but not go as far as California or Europe has. Committee Republicans, after two years of work on this, have a way to jump -start the conversation.
Berger: With agenda for financial services committee, what be worked on for rest of year, and what are your goals for 2023?
McHenry: I think between now and end of year I think we have the opportunity to legislate around stablecoins. The idea is your digitizing the dollar and it is the converting mechanism to digital assets, and right now there are no standards. We need a federal standard.
For 2023, a lot has to do with the election. If I’m the chair, agenda focus is on data privacy, capital formation and clarity to digital assets.
There will also be vigorous oversight around CFPB, which they so richly have earned and deserve, and oversight around your regulator and the FDIC. All these regulators need a check and a balance brought to them and congressional attention.
Berger: What do you think chances are of House flipping Republican?
McHenry. High. In every election years, everyone has these great expectations, and they shift on a dime. And politicians are the dumbest they can possibly be in an election year. Against the backdrop of elections rests on economic growth. How do you feel? Better or worse. With inflation like it is, everyone in the world that is experiencing inflation like this, the in-party is not doing well. The fact inflation has not worsened in the last three months has benefitted President Biden and the Democrats, and the fact gas prices have gotten better have benefitted President Biden and the Democrats.
So, I think what we have now is what they call in the markets a dead-cat bounce. Everyone thinks the markets are going to go right back up. I don’t think economy is going to improve between now and election day to save us from their bad policies that have affected the economy.
That means I will get to see the agenda and pace and direction of the committee. But I don’t know how they are going to turn out.
Berger: With fintech, how do you see it playing a role in innovation?
McHenry: I think it’s a vital role. The ease of payments, the frictionless movements of bits and bytes, and the assumption that money should move as quickly as that, has driven the need for innovation. We need a partnership model. Without the partnership, we are not going to be able to drive the innovation for smaller institutions to prosper in this marketplace, and we desperately need them to prosper so we have more financial choice. We do not want a situation like in Europe where you have fewer institutions and fewer options, and less risk-taking. The question of innovation is about relief from regulation. But what you want to be able to do is provide your members with the best options that they are seeking and expect.
Berger: The big issue for us right now is interchange. What do you think? Will the interchange bill pass?
McHenry: The senator from Illinois is at it again. There is this talk in the Senate, but there is no bill in the House. What I understand is in the House they are kicking this around trying to find co-sponsors. I think it’s misguided. Then there is not just interchange, but this question of routing and it gets pretty complicated pretty quickly. This debate is brought up in election years, isn’t fully fleshed out. The approach here is to say this is Main Street vs. Wall Street. Congratulations. You’re Wall Street. I think we have to step back and look at this. I think this is something we should wring out through competition, not federal fiat.
The Very Best in CU Reporting. For You. For Free. Or Your Money Back.
Don’t forget to check your Spam/Junk email folder if you haven’t been receiving your free, popular and daily CUToday.info news headlines.
And 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.
CUToday.info has received very positive response from readers following the move to an improved provider of the daily headlines, but many also noted they did need to go to their Spam/Junk folder and mark it as safe.
The new email solution has not only improved every reader’s delivery experience, but it also features a fresh, new format that is easy to read, especially on mobile devices.
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.