Senator Elizabeth Warren just sent what amounts to a regulatory warning flare to Kyle Hauptman, the guy currently running the National Credit Union Administration (NCUA).
The issue? The NCUA’s Deregulation Project, which sounds innocuous enough until you realize it’s attempting to roll back a whole bunch of rules that have kept credit unions stable and member funds protected for years.
What’s on the Chopping Block?
Since December 2025, the NCUA has churned out eleven rounds of proposed regulatory changes. We’re not talking minor tweaks to paperwork requirements here. Some of these proposals would fundamentally change how credit unions operate:
- Goodbye collateral requirements: The proposal would eliminate rules requiring credit unions to have adequate collateral when they guarantee loans for members. Think of it like letting someone cosign your apartment lease without proving they can actually cover the rent.
- Axing nondiscrimination protections: Requirements stemming from the Fair Housing Act and Equal Credit Opportunity Act would get the boot. Yes, those Fair Housing Act protections.
- Merger disclosure changes: The rules about how credit unions must communicate proposed mergers to their members? Gone.
- Insurance coverage notifications: That 30-day heads-up members currently get if their credit union plans to drop supplemental insurance coverage? The NCUA wants to eliminate that requirement too.
- Board training requirements: New board members would no longer need post-election training in finance and accounting. Because who needs financial expertise when overseeing financial institutions, right?
The Stakes Are Pretty High
As Warren pointed out in her letter, we’re talking about roughly $2.5 trillion in assets and more than 145 million credit union members. That’s not pocket change, and those aren’t small numbers of people who could be affected.
“Your agency is crucially responsible for the safekeeping of the roughly $2.5 trillion in assets in the credit union system and the more than 145 million members credit unions serve,” Warren wrote. “It is critical that the NCUA maintain strong supervisory and regulatory safeguards to ensure the safety and soundness of the credit union system.”
The Legal Gray Area
Here’s where things get even more interesting. Warren also raised questions about whether Hauptman even has the authority to push through these changes while flying solo at the NCUA.
The backstory: President Trump fired two NCUA board members—Todd Harper and Tanya Otsuka—back in April 2025, leaving Hauptman as the only person on what’s supposed to be a three-person board. Federal law is pretty clear that the NCUA Board “shall consist of three members,” and the agency’s own regulations state that at least two board members need to agree for any official action.
So if you need two votes and there’s only one person, well, the math doesn’t exactly work out.
What Happens Next
Warren has requested a briefing on the deregulation project and asked Hauptman to answer specific questions by July 13, 2026. Whether those answers will satisfy her concerns—or whether this becomes a bigger regulatory showdown—remains to be seen.
For now, credit union members and industry watchers would be wise to keep tabs on how this unfolds. After all, these aren’t abstract policy debates. They’re rules that could directly impact how safe their money is and how their credit union operates.
Related:
Take the money and run: The NCUA’s CU-to-MSB Conversion Disclosure Proposal
The NCUA wants to make credit union conversions to banks easier. WTH?
NCUA simplifies the exit from the credit union movement: The deregulation dilemma