US credit unions are waiting on approval from the National Credit Union Administration (NCUA) to buy, sell and hold digital assets. This move is a year late given the fact that banks were already approved to partake in such crypto activities a year ago.
NCUA stated in a letter that they are looking for the authority to connect members with third-party providers. Members, in this case, would be all 9,500 credit unions active within the USA.
“FCUs may continue to act as a finder to bring together their members and providers of third-party services, including services related to digital assets. As noted above, FISCUs should look to applicable state laws and regulations.
The Federal Credit Union Act (FCU Act) authorizes an FCU “to exercise such incidental powers as shall be necessary or requisite to enable it to carry on effectively the business for which it is incorporated.” Part 721 of the NCUA’s regulations implements the incidental powers provision of the FCU Act.”
Within the letter, the NCUA also talked about the everchanging crypto industry and the challenges this might have for regulators.
“As with other evolving technological changes, the NCUA acknowledges further guidance may be needed as questions continue to arise related to digital assets and DLT. This may include potential regulatory and statutory changes in the future. The NCUA encourages interested parties to contact the agency with suggestions that would provide further clarity and certainty.”
It’s only a matter of adaptation at this point, regarding credit unions. They see this as an existential threat and rightfully so, given the benefits of cryptocurrencies, if we take away the scams and hype.
Hopefully, they can get it approved. It will allow them to be competitive and widen cryptocurrency adoption in the short term.
Government always slow down innovation