During the Governmental Affairs Conference (GAC) this week, credit union leaders from California and Nevada and California’s Credit Unions and Nevada’s Credit Unions met with Kyle Hauptman, chair of the National Credit Union Administration (NCUA), for a discussion focused on the regulatory and supervisory issues currently shaping the credit union system.
The meeting also served as an opportunity to thank Hauptman for his engagement with California’s Credit Unions and Nevada’s Credit Unions — and credit unions — throughout his tenure, particularly as he transitions to serve on the Public Company Accounting Oversight Board (PCAOB) while continuing to lead the NCUA until a successor is nominated and confirmed.
In his opening remarks, he reflected on several initiatives undertaken during his chairmanship. He highlighted the agency’s ongoing Deregulation Project, the policy statement reinforcing the principle of “no regulation by enforcement,” and the agency’s recently issued supervisory priorities.
Hauptman also discussed the agency’s broader engagement with emerging financial technologies, including the NCUA’s Notice of Proposed Rulemaking establishing a framework for applicants seeking approval to become permitted payment stablecoin issuers under the GENIUS Act. Additionally, he noted the agency’s convening of roundtables during GAC on digital assets — featuring credit union leaders actively engaged in innovation — as well as a separate roundtable examining the implications of artificial intelligence for financial services.
The conversation also touched on several issues that remain top of mind for credit unions as the regulatory landscape evolves. Participants discussed the continued progress of the NCUA’s Deregulation Project and the importance of ensuring that the agency’s regulatory framework appropriately balances safety and soundness with reducing unnecessary burden on credit unions. Attendees also discussed the future direction of the NCUA more broadly, including how the agency can continue to provide regulatory clarity and maintain a consistent supervisory approach across the system.
Credit union leaders also highlighted the importance of maintaining the federal credit union loan interest rate cap in a way that provides flexibility in varying interest rate environments, noting the role it plays in allowing credit unions to continue meeting member needs during periods of economic volatility. The conversation also focused on the agency’s ongoing efforts to reinforce its commitment to avoiding regulation by enforcement and the importance of making sure this philosophy remains embedded in the agency’s culture over the long term.
Participants also discussed the future of the Office of National Examinations and Supervision (ONES), particularly in light of recent leadership changes, and the importance of maintaining strong, consistent supervision of the nation’s largest credit unions.
Finally, toward the close of the meeting, California’s Credit Unions and Nevada’s Credit Unions raised the importance of the ongoing litigation surrounding the Illinois Interchange Fee Prohibition Act (IFPA). Enacted in 2024 and scheduled to take effect July 1, 2026, the law prohibits credit and debit card networks and issuers from charging interchange fees on the sales tax and gratuity portions of transactions.
The California and Nevada leagues emphasized that the law, if implemented, would have significant operational and financial implications for financial institutions and the payments ecosystem. In that context, California’s Credit Unions and Nevada’s Credit Unions respectfully requested that the NCUA consider filing an amicus brief in the pending litigation to highlight the potential impact of the law on credit unions and their members.
California’s Credit Unions and Nevada’s Credit Unions expressed appreciation for Hauptman’s willingness to maintain an open dialogue with the credit union system and his engagement with leagues and credit unions throughout his tenure. The California and Nevada leagues noted that ongoing collaboration between the agency and the credit union community remains essential to ensuring a strong, innovative, and member-focused credit union system.
