This week the National Credit Union Administration (NCUA) published a letter to federally insured credit unions saying it is supportive of them using blockchain technology. The NCUA is the U.S. federal agency that provides insurance. In December, it published a letter regarding digital assets.
However, the regulator added a number of caveats, such as the distributed ledger technology (DLT) should be used only for a permissible application and in compliance with all applicable laws. Credit unions are expected to conduct a thorough risk assessment of any DLT network, including for cybersecurity, compliance, reputation risk, liquidity, and third party risk.
December’s letter gave the green light for credit unions to engage third party partners to enable their members to hold cryptocurrencies and digital assets. But it did not explicitly give the credit unions the right to engage more directly. That’s something that the industry body NAFCU is keen to hear more about. Some have interpreted the latest letter as a green light.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
