For those hoping the policy and political worlds would slow down after Virginia’s session extended into June due to the budget… I’m sorry to report that your state politicians, and therefore your VBA government relations team, remain year-round professions. And do not get Tristan and I started on the calls for another Special Session this fall.

Waiting for Clarity in Washington

While much of Washington focuses on Truth Social posts and the rapidly approaching federal elections (are you registered to vote?), the VBA continues to pursue a straightforward goal: ensure policymakers understand the value banks provide to their customers, communities, and the broader economy.

One of our most significant priorities remains the CLARITY Act and creating a regulatory framework for digital assets. As the U.S. Senate debates the bill’s final details and attempts to round up the necessary bipartisan votes, the VBA has joined our banking industry partners in elevating concerns about fixing the loophole for payment stablecoin yield, interest or rewards produced by the GENIUS Act. Absent stronger language in the bill, Congress would be creating an uneven regulatory playing field, undermining bank deposits, and ultimately eroding lending in Virginia communities.

Innovation should be encouraged, but should not come at the expense of consumer protection, fundamental principles of fairness, or access to capital for businesses, farmers, and consumers. Banks have earned the public’s trust through decades of supervision, capital and liquidity requirements, and deposit insurance protections. Any new framework should recognize that reality, rather than create incentives to move financial activity outside the regulated banking system. VBA has communicated these concerns repeatedly to Virginia’s congressional delegation and federal regulators – but more importantly, more than 250 Virginia bankers, like you, have actively engaged in our ongoing grassroots campaign. While it is uncertain whether the CLARITY Act will include the airtight closure of the loophole, or even if it has the votes to pass the US Senate, the banking industry’s voice has been united and powerful.

VA Workgroups: 2027 Policy Opportunities & Threats Already Emerging

The VBA welcomes the opportunity to represent Virginia banks, including serving on multiple post-session workgroups this summer and fall, ranging in topics from garnishment procedures to how localities adjust to the elimination of the penny. The workgroup most likely to prompt legislation proposals for the 2027 session – both proactive and defensive – is the one being led by the Virginia Attorney General’s Office (OAG).

As required by HB190, the VBA is working with the OAG on an important initiative focused on electronic financial fraud. It brings together representatives from financial institutions, government agencies, consumer groups and others to examine the growing threat posed by scams, payment fraud, and other forms of electronic financial crime. There have been encouraging preliminary conversations on how fraud prevention must be a shared responsibility. While banks are the front lines of protecting consumers through prevention, consumer awareness and coordination with law enforcement and regulatory agencies, banks cannot do it alone. Criminals are increasingly sophisticated, fast-moving, and highly difficult to track down and punish, and tackling these challenges requires collaboration across the private sector, including ensuring social media and telecommunications providers – where many scams originate – are actively responsible for deterrence and prevention.

How can you and your team add to these important policy conversations?
Register for the regional state legislative meetings in your area!

No one is better positioned to tell these stories than you, which makes your participation in our fall meetings, grassroots alerts and events like Banker Day critical to our policy success. As always, advocacy is most effective when it is informed by the experiences of bankers across the Commonwealth. Whether the issue is stablecoin regulation in Washington or fraud prevention in Virginia, your perspective helps shape our message and strengthens our credibility with decision-makers.

The policy issues may change, but the formula for successful advocacy remains remarkably consistent: engaged bankers, informed policymakers, and a strong, unified industry voice. Fortunately, that is an area where Virginia banks continue to outperform.