WASHINGTON, D.C. (February 10, 2025) |
Today, the Defense Credit Union Council (DCUC) sent a letter to the Judiciary Committee on Administrative State, Regulatory Reform, & Antitrust, ahead of its hearing on “Reining in the Administrative State: Regulatory and Administrative Law Reform.” In the letter, DCUC addresses the increasing regulatory burden facing credit unions and proposes solutions for reform.
DCUC Chief Advocacy Officer Jason Stverak wrote how credit unions, as not-for-profit financial cooperatives, have long provided affordable services, including to our Nation’s military and veteran communities. However, due to excessive regulation, credit unions face rising operational costs, stifled innovation, and reduced competitiveness. Stverak highlights key regulations, including the Dodd-Frank Act, the Bank Secrecy Act, and capital adequacy standards, which impose significant compliance requirements and limit credit unions' ability to serve members.
To address these challenges, DCUC recommends regulation that reflects the unique structure of credit unions, the creation of regulatory sandboxes to foster innovation, simplified compliance requirements, and enhanced communication between regulators and credit unions.
While regulations are necessary for financial system integrity, DCUC urges the Judiciary Committee to strike a balance that supports consumer protection without hindering the mission of credit unions. DCUC believes these reforms would enable credit unions to continue offering vital financial services and contributing to economic growth.
For more information, please contact Jason Stverak at jstverak@dcuc.org and visit dcuc.org/advocacy.