Credit unions will fall behind without NCUA action on credit unions’ ability to purchase digital assets, CUNA wrote to the agency Wednesday in response to an agency Request for Information on digital assets and related technologies.  

“Credit unions should be able to offer consumers an entry point to purchase and use digital assets. Credit union members trust their credit union to provide necessary financial services, and the ability to provide new financial services products and delivery channels is needed for credit unions to fulfill their mission,” the letter reads. “Moreover, credit unions’ focus on financial literacy and financial education can be extended to digital asset related products in order to help credit union members use these new products prudently.

“And as regulated entities, by law, credit union members receive robust protections not available when obtaining financial services from fintech and other providers with a business model designed to skirt regulations,” it adds.

CUNA writes that NCUA has not opined on any credit union authority to provide digital asset related services to credit union members, despite digital ledger technologies being developed in 2009 and the first Bitcoins mined in 2009.

CUNA also adds that immediate NCUA action is needed in on two important issues:

• Does the Federal Credit Union Act (FCUA) or other legal or regulatory guidance provide authority for credit unions to provide digital asset custody and related custodial services for their members?
  • CUNA believes the Federal Credit Union Act and its implementing regulations provide credit unions with “incidental powers” that likely encompass the provision of custody services for digital assets, such as cryptocurrencies.
• Does NCUA have the authority to change their regulations to allow credit union service organizations (CUSOs) the ability to provide cryptocurrency-related services?
  • CUNA notes that the NCUA board acknowledged it should be flexible in its approach to expanding permissible CUSO activities when approving the 2021 final CUSO rule.