WASHINGTON, DC (September 2, 2025) |
The Defense Credit Union Council (DCUC) has sent a letter to the Senate Committee on Banking, Housing, and Urban Affairs in advance of the September 4 hearing on the nomination of Stephen Miran to the Federal Reserve Board.
In its letter, DCUC stressed the importance of ensuring that future Federal Reserve policies support the ability of credit unions to provide affordable, secure financial services to America’s communities.
Key Issues Raised by DCUC
Regulation II (Interchange Fees): DCUC urged caution on proposals to expand interchange fee caps or routing mandates, noting past interventions have reduced free services and increased costs for consumers. With recent court rulings complicating the Fed’s interchange standards, DCUC warned that further changes could harm community-based lenders and the military families they serve.
FedNow Real-Time Payments: DCUC applauded the launch of FedNow and encouraged the Fed to ensure the service remains accessible, secure, and affordable for credit unions of all sizes. Real-time payments, DCUC noted, are especially valuable for deployed servicemembers and veteran entrepreneurs.
Emergency Liquidity Facilities: DCUC called for restoring and permanently authorizing broader access to the Central Liquidity Facility (CLF), particularly by allowing corporate credit unions to act as agents for smaller institutions, as was temporarily authorized during the COVID-19 pandemic.
Central Bank Digital Currency (CBDC): DCUC expressed strong concerns over a retail-oriented U.S. CBDC, warning it could siphon deposits from community lenders, reduce credit availability, and create serious privacy and cybersecurity risks. DCUC urged that any CBDC proposal require explicit Congressional authorization.
Fair Access and Inclusion: DCUC called for regulatory approaches that avoid “debanking” vulnerable populations; credit unions continue to serve a critical role in financial inclusion for military families, low-income households, and underserved communities.
Federal Reserve Transparency and Independence: DCUC encouraged the Committee to examine the nominee’s views on increasing transparency in regulatory decisions and emergency lending while preserving the Fed’s independence in monetary policy.
Suggested Questions for the Nominee
DCUC recommended that the Committee press the nominee in evaluating:
- approach to balancing merchant and consumer interests in interchange fee policy;
- how he would expand and secure FedNow participation;
- his support for restoring broader CLF access for small credit unions;
- his position on a U.S. retail CBDC and related risks;
- his proposed strategies for promoting fair access to financial services;
- his stance on Fed transparency and governance reforms.
“Defense credit unions are on the front lines of promoting financial readiness for our servicemembers, veterans, and their families,” Stverak adds. “We urge the Committee to ensure that the Federal Reserve’s leadership remains committed to protecting community-based financial institutions and the consumers they serve.”
For more information, please contact Jason Stverak at jstverak@dcuc.org and visit dcuc.org/advocacy.