It was the year 1909 when Pierre Jay, the first banking commissioner of Massachusetts, was successful in getting the first credit union act passed in the commonwealth. Many other states followed suit, and then in 1934, the Federal Credit Union Act was enacted, establishing a federal charter and a choice of charter for credit unions. Today, there are more than 7,000 credit unions, state and federal, serving the financial needs of our nation's citizens.

The credit union system knows this history. NASCUS believes it is important to revisit it to remember that while working to maintain the safety, soundness and viability of the credit union system, essential elements of the movement's long and successful history have been charter choice, dual chartering and diversity of regulation.

When functioning properly, a balanced dual chartering system benefits both the movement and the regulators. A properly balanced dual system fosters a constructive competition between state and federal regulators and drives agencies to seek efficiencies and think creatively about public policy questions. Regulatory efficiencies and creative approaches to public policy are critical to maintaining a viable, innovative system.