Legislative Update with Kenley

Advocacy updates; Summit giving; and election reminders continue driving engagement across Dakota credit unions.

By Kenley Lamberty, DakCU Director of Political Strategy and Engagement

Summit Auction Is Open Now — Bid to Support the Heacock Scholarship
The Summit Auction is officially open! We invite you to browse the items, place your bids, and share the auction with colleagues and friends. All proceeds from this year’s auction will benefit the Heacock Scholarship, supporting education and leadership development within our credit union community. Your participation helps make a meaningful impact and continues the Summit’s tradition of giving back.

Bidding will take place through the GiveButter app, allowing participants to browse items, place bids in real time, and receive notifications if they’ve been outbid. Whether near or far, supporters can stay engaged throughout the auction.

Bid here!

The silent auction closes Thursday, May 14 at 9:00 p.m. CST And remember, you do not need to be present to bid or win. If you are unable to attend Summit or leave before the auction closes, you simply need to arrange for someone to pick up your item on your behalf, or DakCU can assist with delivery arrangements (shipping fees may apply).
 
Advocacy Update: Stablecoin Yield Language in the CLARITY Act
Last week, DakCU met with staff from Senator Mike Rounds’s office and Senator Thom Tillis’s (NC) office to discuss concerns with the current stablecoin yield language included in Section 404 of the CLARITY Act. Representatives from the banking industry were also on the call, underscoring that these concerns are shared broadly across regulated financial institutions.

During the meeting, we outlined key pain points with the current “compromise” language, particularly its failure to fully close existing loopholes that could allow stablecoins to function like interest‑bearing deposit substitutes. While the draft correctly prohibits direct yield paid solely for holding stablecoins, it still allows rewards structures based on balance size, holding duration, or tenure—which can economically replicate interest without being labeled as such.

We emphasized that allowing these reward structures increases the risk of deposit flight from insured institutions, reducing the dollars available for agricultural, consumer, and small‑business lending in our communities. We also raised concerns about regulatory arbitrage, noting that credit unions and banks operate under strict National Credit Union Administration (NCUA) and Federal Deposit Insurance Corporation (FDIC) safety‑and‑soundness requirements, while crypto platforms and decentralized finance structures are not held to the same standards. As recent history has shown most notably with FTX, a digital currency exchange these gaps significantly increase risk to consumers and the broader financial system.

A committee markup is expected this week, and we are hopeful that the feedback shared by credit unions and banks alike will result in targeted changes to strengthen the legislation. DakCU continues to support responsible innovation while advocating for policies that protect member deposits, preserve local lending capacity, and ensure a level regulatory playing field.

Treasury Official John Crews Nominated to Serve on NCUA Board
President Donald Trump announced Monday the nomination of John Crews to serve on the NCUA  Board. Crews currently serves as Treasury deputy assistant secretary for financial institutions policy. If confirmed by the U.S. Senate, he would succeed Chairman Kyle Hauptman, whose six-year term expired in August 2025.

America’s Credit Unions praised the nomination, noting Crews’ understanding of the role mission-driven lenders play in supporting families and small businesses. In a statement, President and CEO Scott Simpson highlighted Crews’ experience at the Treasury Department and his approach to innovation, safety, and expanding access to affordable financial services, expressing optimism about working together to modernize the credit union regulatory framework.

Crews brings significant policy experience to the role, having previously served as a policy advisor to House Majority Leader Steve Scalise and as policy director for the Senate Banking Committee. He also served in the White House National Economic Council during the first Trump administration. Crews was nominated for a term ending in August 2031, filling one of several board seats as the credit union industry continues to call for a full, three-member NCUA Board.
 
Early Voting Is Open Now — Make a Plan to Vote
Voter Registration Deadline: May 18
Early voting is now open for South Dakota’s June 2 primary election, and the Dakota Credit Union Association encourages credit union leaders, employees, and advocates to participate. To vote, individuals must be registered by May 18; South Dakota does not offer online registration, so completed forms must be submitted to county auditors by the deadline. Civic participation is vital to ensuring policymakers understand the value of the cooperative, not-for-profit credit union model and its role in supporting communities. Voters are encouraged to check their registration status, make a plan to vote early or on Election Day, and find official information and forms at www.sdsos.gov.
 
 Stay Connected
For more information or to share your perspectives, feel free to contact me. ​​