WASHINGTON–With both credit union trade groups pressing Congress to bring fintechs under the same regulatory umbrella as other financial institutions, one of the key questions to be asking is what happens when things go wrong, according to NAFCU.
Credit union trade groups have called on Congress to ensure a “level playing field” between unregulated fintechs and credit unions. A number of fintechs have in the last year seen strong user growth into the millions of customers. Congress held a hearing on the issue last week.
“What we saw from the hearing is there are still a lot of questions,” said NAFCU EVP and General Counsel Carrie Hunt. “We are going to see more hearings on this issue. I think, ultimately, there is going to be a lot of disagreement as to what that regulation should look like. There is agreement that traditional financial providers can find value in partners, including fintechs, which can innovate quickly. It’s when they go one step further that begs the question around safety and soundness. We think credit unions provide the best option for consumers cradle to grave. These apps to move cash around quickly have a very finite purpose. The consumer really likes them until there is a problem, such as fraud, and then they end up going back to their credit unions. This is about a fair playing field.”
Regulatory Rollbacks’
Separately, the Biden Administration continues to roll back a number of Trump Administration rules and regulations, most recently around fair housing
Hunt said NAFCU is watching the moves being made by the Biden Administration, as it strongly supports a “deregulatory agenda.”
“If there is re-regulation, we want it to be necessary regulation,” said Hunt. “That’s how we view these rollbacks. We strongly support fair housing. Generally, it’s not the intent of regulation we have an issue with, its regulatory burden and whether it’s necessary to achieve those goals. Generally, there are other ways to achieve those goals.”
Congress is considering new legislation around cryptocurrency, and these new tools could have profound implications for the industry. Andrew Lepczyk Creditunions.com Cryptocurrency is seemingly everywhere in 2025, including member’s virtual “wallets .” A 2022 study from CUNA – now known as America’s Credit Unions – found cryptocurrency ownership among credit union members stood at 39%, as opposed to 17% of the general population. In some ways this makes sense; many Americans who feel excluded from the traditional financial system are drawn to cryptocurrency, mirroring the relationship many members have with their credit union. While there are plenty of enthusiasts, cryptocurrency also has its detractors. Many dismiss crypto ownership as speculative, and cryptocurrency as nothing more than an overly risky, volatile asset. Public failures of companies like FTX have only made the critics louder. A recent study from the Pew Research Center found 63% of r...
Comments
Post a Comment
Please no profanity or political comments.