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NCUA Nominee Emphasizes Safety, De Novo Charters and Tech Readiness; Senators Press on Stablecoins
Summary
Mr. Cruz, nominated to the NCUA board, told the committee he would prioritize safety and soundness, risk‑based supervision and support for new credit union charters; senators asked whether stablecoins have caused deposit flight and raised concerns about board composition and rural credit unions.
Mr. Cruz, President Trump’s nominee to serve on the National Credit Union Administration board, told senators he would pursue a "thoughtful and steady" approach emphasizing safety, soundness, and risk‑based supervision tailored to the many small credit unions that lack extensive resources.
Cruz highlighted technological priorities, saying the NCUA should be ready for innovation such as stablecoins and AI while also addressing cyber risk. He said he would build on the current chairman’s work and engage stakeholders to balance modernization with consumer protection.
Committee members pressed Cruz on the agency’s leadership: several senators noted that statute prescribes a three‑person, politically balanced board and criticized delays or litigation affecting full board appointments. Cruz said he would respect any court outcome related to board composition.
A senator asked whether stablecoins have caused deposit flight from credit unions. Cruz disputed the assertion that stablecoins have produced mass outflows: he pointed to recent data showing that the base of deposits at credit unions "grew" last year and said he would work to support de novo charters to help rural communities. He also flagged the need for effective supervisory engagement and an "open door" with institutions to identify and mitigate cyber and fraud risks.
The exchange underscored bipartisan concern about rural access to depository services and the regulatory burdens that can make launching new credit unions difficult. Cruz pledged to pursue tailored regulation to help small institutions and to prioritize safety and resilience.
The committee did not vote; members may submit follow‑up questions to the record by the stated deadline.
