WASHINGTON, DC (July 15, 2026) |
The Defense Credit Union Council (DCUC) today applauded the U.S. House of Representatives for passing three bills from the House Committee on Financial Services on July 14: H.R. 3074, the Common Cents Act; H.R. 6556, the Failing Bank Acquisition Fairness Act; and H.R. 1181, the Protecting Privacy in Purchases Act. H.R. 3074 and H.R. 6556 passed by voice vote, while H.R. 1181 passed by a vote of 221–201.
“These bills address distinct parts of the financial system, but they advance the same practical objectives: greater efficiency, fair competition, clear operating rules, and respect for consumers’ financial privacy,” said Jason Stverak, DCUC Chief Advocacy Officer. “Those principles benefit all credit unions and are particularly important to defense credit unions serving servicemembers, veterans, and military families across installations, states, and time zones.”
Common Cents Act Would Modernize Cash Operations
Sponsored by House Republican Conference Chairwoman Lisa McClain (MI-09), the Common Cents Act would direct the Treasury Department to cease producing one-cent coins for general circulation while preserving existing pennies as legal tender. The legislation also would authorize an alternative nickel composition designed to lower production costs and provide a clearer federal framework for consistent cash practices.
For credit unions, the transition has the potential to reduce the operational costs associated with ordering, transporting, storing, counting, and reconciling low-value coins. Clear national guidance would also help credit unions update branch procedures and communicate consistently with members during the transition.
“Credit unions manage cash operations at branches serving communities throughout the country and on military installations around the world,” Stverak said. “An orderly transition away from penny production can reduce unnecessary taxpayer and operational costs while ensuring that members receive fair and consistent treatment. Clear implementation guidance will be essential so credit unions can update their systems and procedures without disrupting member service.”
Failing Bank Acquisition Fairness Act Would Promote Competition and Preserve Community-Based Options
Sponsored by Rep. Stephen Lynch (MA-08), the Failing Bank Acquisition Fairness Act would limit the circumstances under which federal banking regulators may waive statutory concentration limits in connection with the acquisition of a failed or failing insured depository institution. Regulators generally would have to determine that a waiver is necessary to prevent significant economic disruption or adverse effects on financial stability and that no qualified bid was received from an institution that could complete the transaction without exceeding the applicable concentration limit. The bill also would require public reporting on the justification for a waiver, the alternative bids considered, and efforts to encourage bids that would not require a waiver.
DCUC previously endorsed H.R. 6556 because it would require regulators to account for qualified, non-concentrating bids before allowing a failed institution to be absorbed by an already dominant banking organization. That approach promotes competition, transparency, and fairness while helping prevent failed-bank resolutions from contributing unnecessarily to further market concentration.
DCUC also emphasized that the legislation’s competition-first principle should be reflected in the broader financial-institution acquisition market. Policymakers should preserve the ability of willing community banks to sell assets and liabilities to qualified credit unions rather than limiting the range of potential buyers.
These voluntary transactions can give community banks a viable succession or market-exit option while preserving local branches, retaining employees, maintaining established customer relationships, and sustaining financial services in rural and underserved areas. For defense credit unions, responsible bank acquisitions can also expand or preserve service in communities surrounding military installations, including locations where other financial institutions have reduced their presence or withdrawn.
“Failed-bank resolution should not become an express lane to greater concentration,” Stverak said. “Regulators should fairly evaluate qualified bids that protect competition, and policymakers should preserve a willing community bank’s ability to sell to a qualified credit union. These are voluntary, market-driven transactions not hostile takeovers and they can provide value to bank shareholders while keeping branches, jobs, and trusted financial relationships in the community.”
“Credit unions frequently step forward where larger institutions are pulling back,” Stverak continued. “That is especially important in rural areas, underserved communities, and locations near military installations, where the loss of a branch can create a lasting financial-access problem. A credit union buyer can carry forward a community bank’s local legacy through a member-owned model that reinvests earnings in better rates, lower fees, expanded services, and community support.”
Protecting Privacy in Purchases Act Would Establish a Uniform Federal Standard
Sponsored by Rep. Riley Moore (WV-02), the Protecting Privacy in Purchases Act would prohibit payment-card networks and covered payment entities from requiring or assigning merchant category codes that specifically distinguish firearms retailers from general-merchandise or sporting-goods retailers. The legislation also would preempt conflicting state and local laws governing those codes while preserving financial institutions’ ability to comply with requirements related to fraud prevention, illegal or suspicious activity, transaction integrity, data breaches, and cybersecurity.
DCUC supports the legislation because it would establish a consistent federal standard for credit unions and other payment-system participants while protecting the privacy of lawful financial activity. A uniform rule would reduce the operational and compliance risks created by conflicting state mandates without limiting the systems credit unions use to identify fraud, money laundering, cyber threats, or genuinely suspicious transactions. DCUC previously supported H.R. 1181 on the grounds that it would protect consumer privacy and provide financial institutions with greater regulatory certainty.
“Credit unions should be able to protect members from fraud and comply with the law without being compelled to categorize lawful consumer activity through a retailer-specific payment code,” Stverak said. “A uniform federal standard will provide needed operational certainty, protect the financial privacy of credit union members, and allow fraud-prevention resources to remain focused on suspicious conduct and actual risk.”
DCUC urges the Senate to give the three measures timely consideration and stands ready to work with lawmakers and regulators to ensure that implementation recognizes the operating needs of credit unions, including institutions serving military installations, overseas communities, and geographically dispersed memberships.