DCUC Updates and Legislative Wins

A quick mid-week update from the Defense Credit Union Council; a truly significant week for credit unions — and for the millions of Americans who rely on our institutions, especially servicemembers, veterans, and small businesses.

Since Monday, we've seen a series of key victories that we believe reinforce the strength and unity of the credit union movement, protect the communities we serve, and signal just how impactful bipartisan cooperation can be on Capitol Hill.

Two Major Wins Stand Out
1. The Senate’s passage of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act (S. 1582) — which moved forward without the harmful Durbin-Marshall amendments related to interchange fees.

We count this as a solid victory after pressing our concerns to key committees ahead of hearings and official votes. We don't expect the fight against the flawed CCCA/interchange proposals to be over anytime soon, and will be monitoring new attempts in the coming months with other legislation.

DCUC has already advised our members on how to prepare for stablecoin issuance becoming a reality:

• Assess Eligibility – Determine if your credit union could qualify as a “permitted payment stablecoin issuer” under the GENIUS Act: S.394 (23).
• Evaluate Infrastructure – Consider what tech and operational updates would be needed to support stablecoin transactions, including wallet integration and compliance systems.
• Engage with Regulators – Stay informed on forthcoming guidance from NCUA and other relevant agencies on how to stay compliant and competitive.

2. The Senate also released its draft of the mega-reconciliation bill, without any threats to the credit union tax status. This is a huge victory in preserving the ability of credit unions to continue offering affordable, mission-driven financial services. *A vote is expected as soon as mid-next week, with lawmakers still eyeing a July 4 deadline.

DCUC also applauds the CFPB’s decision to extend the compliance timeline for its small business lending rule 1071. This move gives financial institutions — particularly smaller ones — more breathing room to prepare, align systems, and plan effectively, all while continuing to serve small business borrowers.

“This has been a remarkable week for credit unions and, more importantly, for the people and communities we serve," said DCUC President/CEO Anthony Hernandez. "These victories prove what we can accomplish when we work together — and remind us of the vital role advocacy plays in protecting access to fair, responsible, and cooperative financial services."

Jason Stverak, DCUC Chief Advocacy Officer added, "The clean passage of the GENIUS Act, and the Senate draft of the budget bill, without damaging amendments or threats to our historic tax status, are major wins not just for our industry, but for every military family, small business, and underserved community relying on credit unions every day."

Lastly, DCUC’s latest op-ed was featured by Tyfone this week: “Preparing for Tomorrow Today: Why Congress Must Make Access to the Central Liquidity Facility Permanent"

​Jason discusses the urgent need to restore permanent access to the Central Liquidity Facility (CLF)—especially for smaller-scaled credit unions that rely on the corporate system for emergency liquidity. Temporary CLF enhancements quietly protected over 140 million members during the COVID-19 crisis, but that authority has expired and we believe Congress has an opportunity to act before the next emergency hits.