Association Testifies on Key Bills in Maryland and Delaware

The Association's Advocacy Team testified on key legislation in the Maryland and Delaware legislatures last week on bills addressing interchange, elder financial protection, credit union mergers, digital assets, and stablecoins.

Here a rundown of the bills and where they are in the legislative process:

Delaware Interchange Bill
Association CEO John Bratsakis and Del-One FCU CEO Dan McCarthy testified before the Delaware House Economic Development, Banking, Insurance & Commerce Committee in opposition to
HB 315 which would amend Delaware law to prohibit payment card networks from charging interchange fees on tips added to credit card transactions. HB 315 has been passed out of committee and will move to the House floor, though the timing of a vote remains uncertain. The Association continues to work closely with a broad coalition of credit unions, banks, industry partners, and national associations to oppose the bill.

Maryland Financial Innovation Act of 2026
The MD|DC Credit Union Association is requesting amendments to HB859, the Maryland Financial Innovation Act of 2026, to ensure that support for digital asset innovation does not come at the expense of strong oversight and consumer protection.

As written, the bill would prevent state and local regulators from overseeing certain digital asset activities, such as holding assets in personal wallets, operating blockchain nodes, and developing blockchain software. It also defines "staking as a service" and states that, when structured in a certain way, it should not be treated as a security under the Maryland Securities Act, exempting it from certain filing and registration requirements.

The Association is requesting revisions to clarify that regulators retain authority to investigate misconduct, enforce anti-fraud and consumer protection laws, and require reasonable transparency and risk disclosures. Without these changes, the bill's broad limits on regulation could weaken important safeguards. Companies offering digital asset services should be held to strong oversight standards similar to those applied to other financial institutions.

Vulnerable Adult Banking Protection Act
The Association supported HB1008 and its companion bill, SB753, which would give fiduciary institutions clearer authority to pause suspicious transactions and report potential financial exploitation of seniors and vulnerable adults to protective services.

Technical Update to Credit Union Merger Statute
HB1049 and SB783, would align Maryland's state-chartered credit union merger rules with the Federal Credit Union Act by requiring only members of the merging credit union to vote on a proposed merger, while permitting the surviving credit union's board to approve the transaction without a separate member vote. The Senate companion, SB 783, has now passed the full Senate and moves to the House of Delegates, where the Association is working to secure final passage this session.

Maryland Stablecoin Act
The Association supported HB1355, which would establish a regulatory framework for payment stablecoin service institutions and designate the Office of Financial Regulation as the state's regulator, providing credit unions with a clearer path to safely participate in emerging payment technologies.