Published in CUToday
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Senate Banking Committee Ranking Member Elizabeth Warren (D-MA) is pressing NCUA Chairman Kyle Hauptman to turn over the legal analysis behind the agency’s position that one board member can constitute a quorum, warning the agency’s deregulation project could weaken the credit union system, American Banker reported.
In a Monday letter, Warren said NCUA’s effort to repeal or scale back 31 rules raises “serious questions” because Hauptman has been acting as the agency’s sole board member since President Trump removed Todd Harper and Tanya Otsuka in 2025, American Banker reported. NCUA has said it has “precedent and standing delegations of authority” to operate with one board member and cited former Chairman Dennis Dollar’s solo actions in 2001-2002, according to a previous NCUA staff message.
Warren said the deregulatory moves could threaten the stability of the broader credit union system, particularly because a large credit union failure could strain the National Credit Union Share Insurance Fund, American Banker reported.
The legal question remains separate from the ousted board members’ removal fight. American Banker reported the Supreme Court’s Monday decision in Trump v. Slaughter weakened Harper and Otsuka’s reinstatement arguments, but did not resolve whether NCUA can legally finalize policy with only one board member.
Meanwhile, John Crews, nominated to replace Hauptman, testified before the Senate Banking Committee last week and is expected to face a full committee vote next month. Chairman Tim Scott (R-SC) said the hearing was about getting qualified leaders in place, while Warren said credit unions need a stable regulator during a period of AI, crypto and board-independence questions, according to Senate Banking Committee statements.
Washington credit union advocate John McKechnie commented on Warren’s letter.
“Senator Warren voicing displeasure at any regulatory relief in the financial sector is no surprise,” stated McKechnie. “I suspect she wouldn’t have liked the proposals that came out of NCUA whether they emanated from a one-person board, a three-person board, or a 23-person board. I’m not trying to be disrespectful, but her philosophy is very well known.”
Brandy Bruyere, partner at Honigman, LLP, believes NCUA is aware of possible legal challenges from operating as a single-member board, given the “somewhat technical nature” of much of its deregulatory agenda that has rolled out over the past year.