ARLINGTON, Va.–With the FDIC, Congress and state regulators all discussing cryptocurrencies and other crypto-assets, what about NCUA and credit unions?
“Ultimately, I think they will need to address it,” said Carrie Hunt, EVP and general counsel with NAFCU. “If for no other reason than for clarity as to what is permitted and what is not. Credit unions are happy to move forward on the innovation front, but if it’s unclear how crypto will be treated on the exam side, it creates a higher level of anxiety and a bit of a disincentive to use crypto in the first place.”
Military Lending Act
Separately, as CUToday.info reported here, with a new administration in Washington and new leadership at the CFPB, the Bureau has issued an interpretive rule that it said explains the basis for its authority to examine supervised financial institutions for risks to active duty servicemembers and their dependents (i.e. military borrowers) from conduct that violates the Military Lending Act (MLA).
Under the Trump Administration, the CFPB had said it lacked such authority.
No Surprise
Hunt said the reversal doesn’t come as much of a surprise.
“I think this reflects the CFPB is going to exert its authority wherever it potentially can,” said Hunt, who is preparing to leave NAFCU to take over as CEO of the Virginia Credit Union league. “The agency has always been very powerful in terms of what Congress intended it to do and it is now pushing the envelope in every way, shape and form. The practicality is for credit unions under the supervision of the CFPB (those of $10 billion in assets or more), it’s going to be looking at that instead of NCUA. It will be a different examination team. For some credit unions it will result in some streamlining; it’s not as if credit unions didn’t already have to comply.”