Sens. Thom Tillis (R-N.C.) and Steve Daines (R-Mont.) each used their time to express concerns about the proposed IRS reporting requirements that would require financial institutions to report the inflows and outflows of personal and business accounts, as well as transfers between accounts of the same owner, if it is more than $600 per year.

Sen. Tillis asked, "Can you confirm for me that credit unions would be included under this, what I consider to be an overreach of policy?"

Harper said, "So, I haven't looked at the details of the legislation, but the reports I've seen is that credit unions are included along with banks."

Sen. Daines followed Tillis and asked Harper, "Do you have an opinion on this proposal? And could you describe how this might impact your ability as a regulator?"

Harper said, "I am aware of the proposal. I haven't gotten down into the details of the proposal. But what I'd like to do is take a look at it more closely and get back to you, if that's OK."

It was pointed out during the hearing that CUNA, NAFCU and others have strongly voiced their opposition to the proposed IRS reporting requirements.

Sen. Daines also questioned Harper on whether the NCUA should expand membership to the NCUA board beyond its three-member structure. "I think there are advantages and disadvantages. Certainly, a disadvantage of going to a larger board would be higher costs for those board [members] and perhaps slowing down the process. On the flip-side of that though, it would create more voices at the table, as you pointed out, in order to have a more informed decision-making," Harper said.

On the topic of promoting sound cybersecurity practices, Sen. Jon Ossoff (D-Ga.) wondered if the NCUA has the proper tools to do that and how they contrast with the cybersecurity practices demanded by banks.

"One very big difference is that bank regulators have the ability to go in and see third-party vendors and the NCUA does not have that authority. So, it's a blind spot for us and it's a blind spot in fact that FSOC, GAO and our own Inspector General have asked us to close," Harper said.

Ossoff said he'd like to create some kind of statutory action to close that blind spot in the future, if Harper's nomination is confirmed.

While many Republican Committee members voiced their opposition to financial regulators getting involved with setting policy around climate risks as it relates to financial risks, Sen. Tina Smith (D-Minn.) asked Harper what the NCUA is doing about climate financial risks in the credit union industry.

"Our focus on climate financial risk is really taking a look at all material risks," said Harper. "For some credit unions it may that they are attached to a particular industry that are undergoing structural changes and that credit union may need to consider expanding its charter, becoming a multiple common bond charter."

Harper continued, "We also need to make sure that credit unions, for example who have high concentrations in perhaps agricultural areas, where you may see changes in the environment that perhaps can no longer be grown there as well – they need to be thinking about what are they making loans toward, how are they making those loans and how are they laying off potential risks through risk-sharing agreements or participation agreements with other credit unions on those loans."

Harper's nomination is scheduled to move to the full Senate for a vote in the coming weeks.