The Defense Credit Union Council, DCUC, has engaged the U.S. Department of the Treasury’s Office of General Counsel on the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, calling for balanced, inclusive regulation that allows credit unions to participate in the evolving digital financial system safely. See DCUC’s official comments here.
DCUC explained that stablecoin innovation, if properly regulated, can reduce payment friction, expand access to financial services, and enhance financial security for millions of Americans, many of whom are credit union members.
“Credit unions continue to offer indispensable, not-for-profit financial services to Americans nationwide and ensure the financial well-being of all communities,” said Anthony Hernandez, DCUC President/CEO. “As the Treasury looks to develop new rules for the digital economy, it’s imperative we advocate for fair, practical regulations that also recognize the impact credit unions have in advancing financial inclusion, stability, and opportunity for all.”
Jason Stverak, DCUC Chief Advocacy Officer, added, “Our goal is to support an effective implementation of the GENIUS Act across the entire financial ecosystem, while still ensuring safety and soundness in both regulation and operations.”
DCUC outlined several key recommendations for Treasury’s consideration:
Tailored Oversight: Stablecoin reserve and reporting requirements should reflect institutional size and complexity, avoiding one-size-fits-all regulations that could burden smaller credit unions.
Regulatory Parity: Treasury and the National Credit Union Administration (NCUA) should provide flexibility around “field of membership” restrictions so credit unions can offer stablecoin-related services on equal footing with banks and fintechs.
Uniform Compliance Standards: All stablecoin issuers should meet the same anti-money laundering (AML) and Bank Secrecy Act (BSA) requirements as credit unions and banks to ensure consistent consumer protections.
Consumer and Institutional Safeguards: Regulations should include clear disclosures, fraud protections, and limits on concentration risk to promote financial stability and protect members.
DCUC will continue its engagement with Treasury, the NCUA, and other federal agencies on behalf of all credit unions as rulemaking discussions and processes proceed.
Additionally, the DCUC wrote to Federal Housing Finance Agency (FHFA) Director Bill Pulte on the agency’s proposed Strategic Plan for Fiscal Years 2026–2030, requesting a commitment to reduce unnecessary regulatory burdens under its goal of supervising the Federal Home Loan Bank (FHLBank) System.
DCUC’s letter stressed the importance of ensuring credit unions have fair and efficient access to FHLBank programs that support affordable housing and community development.
“Credit unions are mission-driven institutions dedicated to helping all communities achieve financial stability and homeownership,” says Anthony Hernandez, DCUC President/CEO. “Expanding access to the FHLBank System and reducing regulatory barriers will empower credit unions to better serve military families and strengthen local economies.”
“We appreciate Director Pulte’s dedication to improving housing access for all Americans,” says Jason Stverak, DCUC Chief Advocacy Officer. “Including a focus on reducing unnecessary regulations within FHFA’s strategic goals will further ensure the FHLBank System remains an efficient, inclusive partner for credit unions nationwide.”