On July 18, America’s Credit Unions sent a letter to the Honorable Kyle Hauptman, Chairman of the National Credit Union Administration (NCUA), urging the agency to initiate rulemaking that would allow credit unions to take custody of digital assets for their members. This request comes in the wake of the recently enacted “Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025” (GENIUS Act), which provides a comprehensive federal framework for the regulation of payment stablecoins.
Background on the GENIUS Act
The GENIUS Act, passed with bipartisan support, aims to provide regulatory clarity, enhance consumer protection, and maintain the U.S. dollar’s dominance in the digital economy. It defines “payment stablecoins” and establishes categories of permitted issuers, setting out requirements for reserve backing, redemption rights, and regulatory oversight.
Credit Unions’ Position
In their letter, America’s Credit Unions emphasized the need for credit unions to have the ability to safeguard members’ digital assets directly. They argue that this capability is essential for credit unions to remain competitive, especially as banks have had regulatory clarity regarding cryptocurrency since 2021. Without swift action from the NCUA, credit unions risk losing members to less consumer-focused providers.
The letter highlights the cooperative and prudently managed model of credit unions, suggesting that extending federal oversight to include digital assets would enhance consumer protection. By allowing credit unions to offer digital asset custody services, members could keep their digital holdings with institutions they already know and trust.
Call to Action
America’s Credit Unions urged the NCUA to engage with credit union experts to guide the rulemaking process, aligning with the GENIUS Act’s one-year implementation horizon. They expressed readiness to assist in developing a framework that would allow credit unions to adapt to the evolving financial landscape.
