The Credit Union National Association (CUNA) reached out to the U.S. Treasury with its views on regulating digital assets.
In a letter to Treasury’s Office of Strategic Policy, Terrorist Financing, and Financial Crimes, CUNA officials said they support a “whole-of-government” approach to digital assets to ensure appropriate oversight and regulation.
“The rapid developments of the digital assets system have far exceeded the pace of regulation,” the letter reads. “As a result, regulated financial institutions, like credit unions, have been held back from fully engaging in the digital asset marketplace due to a lack of clear authorization and guidance from their prudential regulators. Companies that lack strict oversight and supervision, on the other hand, have been able to fill the void and establish themselves with consumers.”
Specifically, CUNA strongly supports efforts to address digital asset related illicit finance and national security risks and agrees changes to the Anti Money Laundering/Countering the Financing of Terrorism (AML/CFT) regime are necessary. CUNA officials also believe that creating and implementing a comprehensive regulatory framework for digital assets is the best way to ensure the effective deterrence of the misuse of digital assets.
Further, CUNA expressed concerns about creating a Central Bank Digital Currency (CBDC), as the potential risks of a CBDC outweigh the potential benefits a CBDC could provide to consumers and the economy.