CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Contact

News

Home » NCUA clarifies credit union use of digital ledger technologies
Policy & Issues

NCUA clarifies credit union use of digital ledger technologies

May 27, 2022
NCUALogo

NCUA issued a Letter to Credit Unions (22-CU-07) clarifying certain expectations for credit unions contemplating the use of new or emerging distributed ledger technologies (DLT).

“The NCUA does not prohibit credit unions from developing, procuring, or using DLT. DLT used as an underlying technology by credit unions is not prohibited if it is deployed for permissible activities and in compliance with all applicable laws and regulations, including applicable state laws or state supervisory authority requirements.”

“NCUA also believes that DLT-related activities are rapidly evolving, and present questions and evolving risks not yet well understood,” it adds.

The letter covers expectations for:

  • Governance, oversight, and planning. Boards should be notified of the use of DLT; staff and third parties should be in compliance; effective risk management practices should be followed, and risk assessment and audit functions should be used.
  • Risk and risk-mitigation strategies. This includes consideration of information, cybersecurity, legal, compliance, strategic, reputation, liquidity, and third-party risk.

It adds credit unions must “remain alert to new and evolving risks,” and states examiners will “evaluate the rigor with which credit unions exercised good judgement, applied sound risk management, and executed compliance and risk oversight of acquisition or development and deployment of new systems and technology.”

KEYWORDS NCUA
Credit Union Magazine: Summer 2022

Summer 2022

Credit Union Magazine’s Spring 2022 edition highlights inclusive lending, succession planning, fair lending and artificial intelligence, and the use of environmental, social, and governance (ESG) as a competitive differentiator.
Digital Edition •  Subscribe

Trending

  • CFPB issues advisory opinion on debt collection fees

  • CDFI Fund offering $1.73B to help communities recover from pandemic

  • Comment deadline extension needed for CFPB late fee ANPR

Tweets by CUNA_News

Polls

Do you think credit unions should offer cryptocurrency services?

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2022 Credit Union National Association | ADA Compliance Notice & Legal
Email Us