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As the House Financial Services Committee debates deposit insurance reform, credit union advocates are urging lawmakers to ensure parity with banks while preserving the independence of the industry's regulator.
In a letter to lawmakers this week, America's Credit Unions outlined its position on several bills under consideration, emphasizing that any changes to Federal Deposit Insurance Corporation coverage must be matched for credit unions under the National Credit Union Share Insurance Fund.
The group expressed support for legislation introduced by Rep. Andy Barr (R-Ky.) that would establish a permanent Transaction Account Guarantee program including credit unions.
"Deposit protection gives people the peace of mind that boosts consumer confidence, helps keep the economy stable and ensures institutions can effectively serve their members," President/CEO Scott Simpson said.
America's Credit Unions also backed the "Growing Deposit Insurance for the Future Act" and a proposal requiring federal regulators to study whether coverage limits should be increased. However, the organization raised concerns about the "Main Street Depositor Protection Act," warning that provisions allowing the FDIC to set coverage levels for certain accounts could undermine the NCUA's authority.
"Policymakers must ensure legislation includes autonomy and oversight by the NCUA as credit unions' independent regulator," Simpson said.
Separately, the Defense Credit Union Council (DCUC) highlighted broader policy priorities tied to financial stability, including liquidity access and lending flexibility, particularly for military and underserved communities.
In a letter to Congress, DCUC Chief Advocacy Officer Jason Stverak said reforms such as modernizing the Central Liquidity Facility and expanding loan maturity options would strengthen credit unions' ability to support homeownership and economic resilience.
Together, the groups signaled support for modernization efforts, but made clear that parity and regulatory independence remain non-negotiable as reforms move forward.
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