NAFCU calls for proper crypto oversight ahead of hearing

by NAFCU Newsroom

Ahead of today’s Senate Banking Committee hearing on financial safeguards for digital assets, NAFCU Vice President of Legislative Affairs Brad Thaler stressed the need for a clear regulatory framework for cryptocurrency and other financial technologies.

Thaler acknowledged the potential of digital assets, with proper design and oversight, to:

  • create efficiencies and reduce credit unions’ operational costs;
  • facilitate payment transactions;
  • enhance regulatory compliance; and
  • reduce instances of human error, fraud, and other misconduct.

“However, the absence of a clear regulatory environment and appropriate supervisory framework poses risks to the adoption of these otherwise promising technologies,” Thaler wrote. “NAFCU supports innovation with these technologies, but the absence of a clear regulatory framework that supports safety and soundness, transparency, and appropriate disclosure of risk to investors and consumers brings with it inherent risks.”

 

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