During the 2026 Governmental Affairs Conference (GAC) this week, credit union leaders from California, Nevada, and California and Nevada’s Credit Unions engaged in a dialogue with John Crews, deputy assistant secretary for financial institutions policy at the U.S. Treasury Department.
Held at the Washington Convention Center near Capitol Hill, the conversation veered into the President Donald Trump administration’s evolving “regulatory reset” — a shift toward restraint, simplification, and regulatory durability intended to foster economic mobility and community growth.
Crews opened the session by validating the unique role credit unions play in the American financial landscape, noting that while his skill is in financial policy, the credit union leaders are the ones on the ground actually working in it. He expressed gratitude for their presence and emphasized that Treasury views credit unions as essential partners in economic growth and community development.
The Treasury’s posture is focused on making regulation more efficient for the more than 3,400 federally insured credit unions working in a landscape of intense competition and burdensome requirements. He noted that the goal of maintaining safety and soundness while making improvements can be a challenge to manage.
Crews also reiterated Treasury’s belief that the power of credit unions and banks to build wealth, create jobs, and foster prosperity is most effective when institutions are allowed to serve their communities as they know best. This includes a focus on cybersecurity, which was described as a top administration priority. Treasury is actively coordinating with the Cybersecurity and Infrastructure Security Agency (CISA) and other financial regulators, such as the National Credit Union Administration (NCUA), on cyber incident reporting alignment. He talked about upcoming CISA roundtables as important venues for engagement, acknowledging industry concerns regarding duplicative reporting requirements between the Cyber Incident Reporting for Critical Infrastructure Act (CIRCIA) and the NCUA’s 72-hour rule, as well as expressing an openness to harmonization.
Fraud prevention and payment modernization also dominated the conversation, as Crews said that faster payments and digital onboarding have accelerated risk, allowing fraudsters to open accounts more quickly. To combat this, Treasury is taking a “full government approach” that extends beyond traditional financial regulators to include telecommunications and social media platforms, recognizing that the vectors of fraud often exist outside the financial system itself. While he emphasized the use of sanctions and enforcement against the “huge buildings” that execute global fraud operations, he also cautioned against moral hazard, noting that consumers must remain aware of their own errors.
On the topic of Bank Secrecy Act (BSA) compliance, which he described as one of the “highest threat” areas facing the system, Crews detailed a new debanking framework following a recent executive order. This strategy aims to identify legitimate regulatory drivers such as Suspicious Activity Report (SAR) thresholds and compliance costs while simultaneously addressing politicized debanking concerns to remain laser-focused on financial risk. He noted that Treasury is not a prudential regulator but serves as a conduit to agencies like the Financial Crimes Enforcement Network (FinCEN) and the NCUA.
The conversation moved to digital assets and stablecoins in the context of the GENIUS Act. Crews stated that Treasury takes stablecoin risk seriously and encouraged credit unions to comment during the early rulemaking process. By coordinating with the Office of the Comptroller of the Currency (OCC) and other agencies, such as the NCUA, Treasury aims to ensure credit unions are not left behind in digital asset markets.
This focus on regulatory durability was a recurring theme, particularly regarding the Consumer Financial Protection Bureau’s (CFPB) Section 1071 small business lending rule. Crews noted that the swinging pendulum of policy every few years is detrimental to the industry and signaled support for approaches that reduce legal risk and avoid regulatory whiplash.
When asked about interest rate caps and interchange income, he acknowledged the ripple effects on institutions of all sizes but pointed out a key distinction: credit union revenue stays within the domestic system, unlike larger banks where dollars often go abroad.
Beyond strictly technical regulation, Crews expressed appreciation for Community Development Financial Institutions (CDFIs) and a desire to make those programs function as effectively as possible for Main Street growth. He also addressed the intersection of immigration and credit access, maintaining an open-door policy and weighing the tension between enforcement and the loss of credit for members.
He also addressed the culture of supervision. The deputy secretary admitted that while words can be written on paper in Washington, D.C., the experience with an examiner onsite is what matters. He called for a cultural change and accountability within financial regulation, including streamlined appeals processes.
The meeting concluded with a repeated invitation for operational feedback. Treasury aims to be a sounding board for credit unions and the financial services industry at large.
For credit union leaders, the takeaways were clear:
“We want to thank Deputy Assistant Secretary Crews for his time and for his willingness to listen to the challenges facing credit unions in California and Nevada,” said Lisa Quaranta, vice president of regulatory advocacy for California and Nevada’s Credit Unions. “It’s encouraging to have an open door to discuss regulations, supervision, and to make sure credit unions’ voices are not just heard — but helping shape the policies that impact members.”
