Here’s a scenario that shouldn’t happen: Congress passes a law to protect community banks from losing deposits to stablecoins and other digital assets but somehow forgets to extend the same protection to credit unions.
Yet that’s exactly what’s happening with the Digital Asset Market Clarity Act currently making its way through the Senate.
The Defense Credit Union Council (DCUC) isn’t having it. They’ve sent a formal request to the Senate Committee on Banking, Housing, and Urban Affairs asking for revisions to H.R. 3633 that would put credit unions on equal footing with banks. It’s not a radical ask—they just want credit unions and their members to get the same protections that banks are getting.
What’s the Problem?
The issue centers on Section 10404 of the bill, which creates safeguards when community bank deposits migrate into payment stablecoins. Smart policy, right? Here’s the catch: it only mentions banks. Credit union share accounts and dividends—which function essentially the same way—aren’t explicitly included.
“Congress should not recognize a threat to local lending when a bank loses funding while leaving comparable credit union losses without the same statutory response,” Jason Stverak, DCUC Chief Advocacy Officer, told Committee leaders this week. Hard to argue with that logic.
Why This Matters
Credit unions serve millions of Americans, including a substantial population of military families stationed both stateside and overseas. When legislation creates a two-tiered system where banks get explicit protections and credit unions have to hope for “indirect protections” or wait for a future study, that’s a problem.
Anthony Hernandez, DCUC President and CEO (and retired U.S. Air Force Colonel), put it plainly: “A military family’s financial security should receive the same consideration regardless of whether its savings are held at a bank or a member-owned credit union.”
It’s worth noting this isn’t DCUC’s first rodeo with this legislation. They’ve submitted comments in January, July, and September addressing stablecoin funding risks, regulatory parity, and the need to ensure servicemembers stationed overseas can maintain access to financial services. This latest push builds on those previous efforts.
What DCUC Wants Changed
The requested amendments are straightforward. DCUC wants:
- Credit union accounts and dividends mentioned explicitly wherever the bill references bank deposits and interest
- Credit union funding losses to independently trigger the same safeguards available to community banks
- The National Credit Union Administration (NCUA) included in required consultations and given a formal role in creating rules that affect credit unions
- Clear protections ensuring overseas assignments don’t disqualify military families from accessing lawful financial services
Beyond Section 10404, DCUC has identified 13 specific areas where the legislation treats banks and credit unions differently, covering everything from digital asset custody to compliance implementation periods. They’re asking for conforming language that provides genuine parity across the board.
The Broader Picture
DCUC isn’t opposing the bill—far from it. They support provisions that prohibit compensation paid solely for holding stablecoins and recognize the difference between passive yield and legitimate payment activity incentives. They’re even suggesting refinements to prevent rewards based primarily on balance or duration without genuine activity requirements.
Their goal, as Hernandez explained, is “a digital asset framework that protects consumers, preserves responsible innovation and gives credit unions a fair opportunity to serve their members.”
Stverak summed it up simply: “Credit unions are simply asking that this bill protects comparable savings, recognizes comparable lawful services, and ensures that the communities who depend on their institution have a fair opportunity to participate in the financial future Congress is shaping.”
As Congress works to bring clarity to the digital asset market—something everyone agrees we desperately need—making sure credit unions aren’t left behind seems like an easy fix. Here’s hoping lawmakers agree.