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CURRENT Newsletter | February 17, 2023

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NOTE: Your League's office will be closed Feb. 20 for Presidents Day. Have a wonderful and safe holiday weekend!

CUs’ Virtual Currency Custody Services Bill Passes State Senate; League-Supported CDFI Bill Passes House

The state Senate yesterday unanimously passed HB1727, credit unions’ virtual currency custody services bill. The House also passed SB1320, a measure that codifies the Virginia Community Development Financial Institutions Fund, originally created in the 2021 Appropriation Act, and establishes the Virginia Community Development Financial Institutions Program to carry out the purposes of the Fund.

HB1727 would permit any credit union in the Commonwealth to engage in virtual currency custody services to the same extent as any bank. Banks won this authority last session. It would allow credit unions to secure private keys for their members’ digital assets in a manner similar to a safe deposit box, with the member retaining control of the asset and the credit union simply securing it.

Your League supports initiatives at the state level to aid CDFIs and we’ve strongly supported SB1320 and its House companion bill, providing testimony in favor of the measures.

The Virginia Community Development Financial Institutions Program would provide grants and loans to community development financial institutions and other similar entities for the purpose of providing financing to small businesses, housing development and rehabilitation projects, and community revitalization real estate projects in the Commonwealth.

Credit unions have consistently demonstrated their commitment to serving the underserved and being strong advocates for community development, and our CDFI credit unions have been among those at the forefront of such initiatives.

NCUA Board OKs Final Rule on Cyber Incident Reporting Requirements; Issues Proposed Rule to Provide CU Access in Underserved, Disadvantaged Areas

The NCUA Board yesterday unanimously approved a cyber incident reporting requirement final rule, which will require federally insured credit unions to file a report with NCUA when a “reportable cyber incident has occurred.” Credit unions would have 72 hours to file the report. Banks had similar reporting requirements implemented last year by their regulators.

According to the final rule, “federally insured credit unions are required to report a cyber incident that leads to a substantial loss of confidentiality, integrity, or availability of a network or member information system as a result of the exposure of sensitive data, disruption of vital member services, or that has a serious impact on the safety and resiliency of operational systems and processes.”

The Board also unanimously approved a proposed rule to amend the field-of-membership and chartering rules through nine changes designed to enhance consumer access to safe, fair and affordable financial services. Comments on the proposed rule must be received no later than 90 days following publication in the Federal Register.

4th Congressional District Vote Next Tuesday

Your League will be closely watching next week’s special election in the 4th Congressional District. State Sen. Jennifer McClellan (Democrat) and Richmond minister Leon Benjamin (Republican) are vying for the seat of the late Donald McEachin, who passed away in November, weeks after winning a fourth term in Congress.

“We look forward to working with the successful 4th District candidate to advance credit unions’ ability to serve their members,” said League President/CEO Carrie Hunt. “We anticipate another busy session of Congress for credit unions and the financial services industry, including data privacy and security measures; revisiting expansion of the Durbin Amendment; and various efforts to curtail so-called ‘junk fees’ levied by megabanks and industry bad actors, which may unfairly end up punishing credit unions and our members.”

VACUPAC January 2023 Report

The Virginia Credit Union Political Action Committee (VACUPAC) last month raised $18,996.15 from 257 individuals. For comparison, we raised $757.63 from 121 individuals in January 2022.

Learn more about VACUPAC

Other News of Note!

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