Crypto regulation needed, CUs need authority to engage

March 8, 2023

Credit unions support appropriate oversight and regulation of the digital assets marketplace and must have the authority to participate, CUNA wrote to the House Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion this week. The subcommittee will conduct a hearing on digital assets Thursday, and CUNA submitted a letter for the hearing record.

“Regulation of the crypto industry must be commensurate with the innovation and development occurring, or these systemic failures will persist and infect the larger economic ecosystem. Regulated financial institutions, like credit unions, must have the required authorities to fully engage in the cryptocurrency marketplace—starting with the ability to custody crypto-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,” it adds.

The letter also notes strong concerns with proposals to create a central digital bank currency (CBDC) present risks that outweigh any purported benefits.

“At this time, the potential risks of a CBDC are not sufficiently mitigated to be outweighed by the potential benefits a CBDC could provide to consumers and the economy,” the letter reads. “It is imperative that the discussion and research continue, and that new proposals are considered and evaluated on their merits.”