Military families get hammered by crypto scams. Like, a lot.
And the credit unions that serve them?
They want to help protect their members with legitimate digital asset services—but they need Congress to level the playing field first.
The Defense Credit Union Council (DCUC) just weighed in on a key piece of Senate legislation called the Digital Asset Market Clarity Act (H.R. 3633 for the policy wonks out there). Their message is pretty straightforward: if we’re going to build a federal framework for digital assets, credit unions need the same tools and authority that banks get. No more, no less.
“Financial readiness is inseparable from mission readiness,” says Anthony Hernandez, DCUC’s President & CEO and a retired U.S. Air Force Colonel. “Service members and defense personnel are frequently targeted by digital-asset scams and aggressive offshore platforms. A safe, clear, and technology-neutral federal framework allows trusted credit unions to pair responsible innovation with robust fraud intervention and human support.”
Translation: When your members are deployed overseas and dealing with sketchy crypto platforms promising the moon, having a trusted credit union that can offer secure digital asset services isn’t just nice—it’s essential.
The Good News: Section 401 Opens the Door
DCUC gave props to Section 401 of the Senate’s version, which would actually let federal and state credit unions work with digital assets and blockchain technology. We’re talking custody services, payments, lending, running blockchain nodes—the whole nine yards.
That’s a solid start. But as with most legislation, the devil’s in the details, and there are some significant gaps that need fixing.
Eight Ways to Make This Work
In their official comments, DCUC laid out a pretty compelling to-do list for the Senate Banking Committee:
Keep Section 401 Strong and Future-Proof
Make sure the language stays technology-neutral and crystal clear. Credit unions shouldn’t need to jump through hoops getting secondary bank or broker-dealer charters just to use blockchain tech for services they’re already authorized to provide.
Extend Authority Beyond Just Credit Unions
Here’s where it gets interesting. Small and mid-sized credit unions don’t operate alone—they rely on Credit Union Service Organizations (CUSOs) and shared platforms to pool resources and expertise. These cooperative networks need explicit authority too, or the whole system breaks down.
Include Credit Union Regulators at the Table
When federal agencies are writing rules and making decisions about digital assets, the National Credit Union Administration (NCUA) and state credit union supervisors need a seat alongside the Fed, OCC, and FDIC. Regulatory parity means actually being part of the conversation.
Protect Traditional Share Accounts
Some platforms are getting creative with stablecoins, disguising what’s basically interest as “activity-based rewards” to dodge regulations. DCUC wants tighter rules to prevent these synthetic products from undermining traditional credit union share accounts and dividends.
Don’t Forget About Military Members Stationed Overseas
This one’s particularly important for DCUC’s members. Service members, civilian defense staff, and their families stationed abroad need to maintain their status as “U.S. persons” under the law. Otherwise, they could fall through the cracks of consumer protections designed for, well, them.
Make Custody Rules Actually Workable
When a credit union holds digital assets on behalf of members, those assets should clearly remain member property. They shouldn’t bloat the credit union’s balance sheet for capital requirements, and they should be protected if the institution ever faces liquidation.
Give Credit Unions Time to Comply
The current proposal gives institutions 60 days after final rules are published to get compliant. That’s… ambitious. DCUC is asking for 18-24 months instead, with compliance requirements tailored to the actual risk profile of different institutions. Seems reasonable.
Guarantee Equal Access to Digital Infrastructure
Credit unions need non-discriminatory access to digital settlement systems. The proposed Micro-Innovation Sandbox should be open to credit union pilots based on project size, not institution size. And credit unions should have representation on the Joint Advisory Committee on Digital Assets—because again, seat at the table.
It’s About Fairness, Not Favors
“Regulatory parity is not a request for preferential treatment,” explains Jason Stverak, DCUC’s Chief Advocacy Officer. “When a member-owned credit union performs the same function, manages the same risk, and meets the same high regulatory standard as a bank, it must receive equivalent authority and access under the law.”
Hard to argue with that logic. Same function, same risk, same standards? Then same authority.
As Congress continues hashing out the rules for digital assets in America, the credit union perspective offers something valuable: a focus on member protection over profit maximization. For the millions of military families and veterans who rely on these institutions, getting this legislation right isn’t just about innovation—it’s about financial security.