It might be an understatement to say that most U.S. banking and securities regulators are not keen on cryptocurrency. However, in a recent speech the vice chairman of the National Credit Union Administration (NCUA), Kyle Hauptman, made supportive remarks and said the agency should avoid being technophobic.
For credit unions, the NCUA has similar roles to the OCC and FDIC for banks, in that it both regulates credit unions and insures credit union deposits.
Mr Hauptman said, “It’s important that we at the NCUA understand that innovation is necessary. I had a reporter ask me, ‘Aren’t you nervous about being pro-AI and pro-crypto, and do you worry about the problems they may cause?’ I replied, ‘Do I worry there might be problems, be downsides? I know there will be.’”
He continued, “Every new, widespread technology comes with downsides. Did you know that there (were) zero car crashes before we had cars? Yet, none of us arrived here on a horse. For that matter, I’ve been asked about crypto’s reputation in some circles as being used by criminals. Well, if you think crypto is often used for illicit purposes, you’re going to freak out when you hear about cash.”
Stablecoins received a positive review as “changing America’s creaky payments system, especially for international payments.”
The vice chair concluded that his key aim is to ensure that credit unions can compete and evolve, unlike companies such as Blockbuster.
Meanwhile, in 2022 the agency provided supportive guidance to credit unions that planned to adopt DLT, but didn’t directly address digital assets. More recently the trade body for credit unions has supported anti-CBDC legislation, as has the American Bankers Association.
