The 2026 Tennessee Legislative session brought some regulatory and consumer protection updates that officially take effect on July 1, 2026. Below are a few significant pieces of newly enacted legislation that can impact credit unions and your members.
Electronic Lien & Title
The Tennessee Department of Revenue will turn on its electronic titling system on June 30, 2026, to meet a legislatively imposed deadline for doing so. It’s important to note that this is not a requirement for credit unions and auto dealers to use, but an option. The Association is working with the Department of Revenue to put together some information about how the new process will function for those that wish to take advantage of it and will be collecting information from member credit unions to assist in that.
THCA Ban – Hemp Industry Affected
Starting July 1, 2026, the Tennessee Alcoholic Beverage Commission will begin enforcing a ban passed in 2025 on THCA, a hemp-derived cannabis product. In addition, a federal loophole making burned THCA legal in states that don’t have marijuana legalization was also closed in a recently passed law. According to industry experts, this product comprises 75% of hemp sales nationally, and the enforcement is expected to be a death knell for the legal hemp industry in Tennessee. Credit unions should review their business lending policies and, if necessary, be prepared to adjust their risk profiles for the hemp industry.
Private Deposit Insurance
The Tennessee General Assembly passed a new law to allow for state chartered credit unions to use private deposit insurance. Rules related to this are yet to be promulgated, and the Association is working with both the Department of Financial Institutions and American Share Insurance to get this option ready for credit unions to consider.
Crypto ATM Ban
Tennessee becomes the second state to ban the deployment and operation of crypto kiosks, also sometimes referred to as crypto ATMs, following a similar law from Indiana earlier this year. The kiosks have increasingly been used as a means to defraud consumers, to the tune of more than $110 million in losses in 2023. Scammers and fraudsters will still be active in our communities, so member education related to cryptocurrency and other scams is still important and necessary.
