Legislative Update with Kenley

NCUA action on the Illinois interchange law and movement on the Crypto Clarity Act could impact credit unions nationwide.

By Kenley Lamberty, DakCU Director of Political Strategy and Engagement

Thank You for Giving Back Through the Summit Auction
​Thank you to everyone who participated in this year’s Summit Silent Auction and generously donated items. Your support made a meaningful impact, and we are proud to share that more than $7,100 was raised. We are especially grateful to the credit unions that contributed auction packages, as well as everyone who bid on the items and helped make this event a success.

All proceeds will go directly to the Roger Heacock Scholarship, helping support advocacy efforts and empowering individuals who are interested in becoming more engaged in the credit union movement. We are grateful for the strong support of this important program.

NCUA Moves to Preempt Illinois Interchange Law, Providing Key Win for Federally Chartered Credit Unions
In significant breaking news, the National Credit Union Administration (NCUA) has taken action to confirm that federal law preempts the Illinois Interchange Fee Prohibition Act (IFPA), submitting a rulemaking to the Office of Information and Regulatory Affairs (OIRA) for review. Publication in the Federal Register is expected soon.

This is a major and welcome development—particularly for federally chartered credit unions, including those here in South Dakota. The NCUA’s action provides important regulatory clarity and reinforces federal authority over the payments system, helping protect credit unions from disruptive state-level mandates.

While litigation surrounding the Illinois law continues and uncertainty remains in the courts, this guidance offers meaningful protection and reassurance for federally chartered institutions as the broader legal challenge plays out.
We are encouraged by this step and view it as a clear win for credit unions. We will continue to monitor both the regulatory and legal developments closely and keep you updated as this issue progresses.
 
Crypto Clarity Act Advances, Momentum Builds Toward July
In Washington, momentum continues to build around digital asset policy. The Clarity Act has advanced out of committee, with the Administration signaling a desire to have the legislation signed into law by July 4.

The bill will still need to clear the Senate with a 60-vote threshold, and negotiations remain ongoing. Notably, a key loophole identified during deliberations was not fully addressed in committee, meaning further refinement is likely as the bill moves forward.

Despite that, the legislation contains several positive provisions for credit unions. It aims to create clearer regulatory frameworks for digital assets, providing greater certainty for institutions exploring custody, payments, and other crypto-related services. For credit unions, this clarity is critical to responsibly expanding services while maintaining compliance and managing risk.

We will continue engaging with policymakers to ensure the final bill strengthens consumer protections, supports innovation, and recognizes the unique role credit unions play in financial services.
 
Stay Connected
For more information or to share your perspectives, feel free to contact me. ​​

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