U.S. Financial Regulatory Week Ahead

Written By Francis Kelly

Bessent’s Regulatory Pillar, Senate Banking Wants to Re-Write Bank Reputational Risk Guidance, the FDIC Revamps Merger Guidelines, and Trump Says He Will Name a New Fed Vice Chair for Supervision

Major changes to the financial regulatory world continue apace in Washington, and two events this past week stood out.  First, Treasury Secretary Scott Bessent gave his first major speech laying out his “Three Pillars of the American First Economic Agenda.” Speaking at the New York Economic Club, Bessent said the first pillar would be overhauling financial oversight, making the case that “regulatory overreach of the past few years in pursuit of political agendas has missed material risk, stymied growth, and squashed innovation.

The Federal Deposit Insurance Corporation (FDIC) was the second significant change as the FDIC’s board of directors voted to roll back the Biden Administration’s proposed bank merger guidelines.  It was the first major financial deregulatory move of the Trump Administration.  The FDIC also withdrew from pending regulations on brokered deposits, corporate governance, and asset manager’s ownership stakes in banks.

In Congress, Republicans on the Senate Banking Committee (all 13 of them) signed on to legislation offered by Banking Committee Chair Tim Scott (R-SC) aimed at forcing federal banking regulators from using reputational risk as a component of supervision.  The point of the legislation, called the Financial Integrity and Regulation Management Act (FIRM Act), is to combat debanking.  The legislation was hailed by state bank regulators and the crypto industry, which has accused the FDIC and other bank regulators of discouraging banks from offering crypto services.  You can read a summary of the bill HERE.

Crypto had a big week last week with President Trump signing an Executive Order creating a Strategic Bitcoin Reserve.  The President followed this up with a first-of-its-kind White House Crypto Summit, bringing together crypto industry leaders.   

 This came as the House Financial Services Committee (HFSC) voted to overturn a Consumer Financial Protection Bureau (CFPB) rule subjecting nonbanks with digital payment platforms to greater scrutiny.   

The HFSC also voted to overturn CFPB rules restricting overdraft fees, something banks have strongly lobbied in favor of repealing.  Both overturned CFPB rules are likely to be passed by the full House but passage in the Senate is far from assured.

While all this was going on, Senate Banking Committee Chair Scott and House Financial Services Committee Chair French Hill (R-AK) sent President Trump a letter urging the President to move quickly in naming a new Federal Reserve Vice Chair for Supervision.  Late Sunday, President Trump said he plans to make an announcement naming a new Vice Chair “fairly soon.”

We would also note — as we get many questions from clients — that we still do not know when SEC Chair-nominee Paul Atkins and Comptroller of the Currency-nominee Jonathan Gould will have their Senate confirmation hearings. The answer is we do not know as nothing has yet been scheduled, although we have heard rumors they may happen in the next two weeks.

Looking at the week ahead, the HFSC is holding a hearing on digital payments and the federal framework for payment stablecoins while the Senate Banking Committee is holding a hearing on affordable housing.  There will also be a raft of SEC and CFTC speeches this week as the futures industry holds its big annual conference in Boca Raton, Florida.  

And the Brookings Institution is holding an interesting event looking at how the State of New York regulates the financial sector.  Below is the full list of major events we are keeping our eyes on this week:

U.S. Congressional Hearings 

U.S. Senate

 

 

House of Representatives

 

Federal Department & Regulatory Agency Meetings & Events

Federal Reserve Board and Federal Reserve Banks

  • There are no public events scheduled for Fed Governors this week. They are in their Blackout Period in advance of the March 19th Federal Open Markets Committee meeting.

 

U.S. Treasury Department

  • There are no significant events scheduled at this time.

 

Department of Commerce

  • There are no significant events scheduled at this time.

 

Department of Housing and Urban Development

  • There are no significant events scheduled at this time.

 

Securities and Exchange Commission

  • Monday, March 10, 1:30 p.m. – Acting SEC Chair Mark Uyeda will deliver remarks at the Institute of International Bankers 2025 Annual Washington Conference in Washington, DC.

 

·       Tuesday, March 11, 4:35 p.m. – SEC Commissioner Hester Peirce and CFTC Commissioner Summer K. Mersinger will participate in a fireside chat during the Global Policy & Regulatory Forum event hosted by the Alternative Investment Management Association in New York

 

  • Thursday, March 13, 2:00 p.m. – The SEC will hold a Closed Meeting.

 

Commodities Futures Trading Commission

  • Tuesday, March 11, 9:50 a.m. – CFTC Commissioner Kristin N. Johnson will speak on a panel titled “The Changing Face of Clearing” at FIA Boca50 in Boca Raton, Florida.

 

  • Tuesday, March 11, 11:10 a.m. – CFTC Acting Chairman Caroline D. Pham will deliver a keynote address at the International Futures Industry Conference, FIA BOCA50 in Boca Raton, Florida.

 

  • Tuesday, March 11, 11:25 a.m. – CFTC Commissioner Christy Goldsmith Romero will speak on an international regulator panel at the International Futures Industry Conference 2025 in Boca Raton, Florida.

 

  • Tuesday, March 11, 4:35 p.m. – CFTC Commissioner Summer K. Mersinger and SEC Commissioner Hester M. Peirce will participate in a fireside chat during the Global Policy & Regulatory Forum event hosted by the Alternative Investment Management Association in New York.

 

Federal Deposit Insurance Corporation

  • Monday, March 10, 10:00 a.m. – Acting FDIC Chair Travis Hill will speak at the Institute for International Bankers 2025 Washington Conference.

 

Office of the Comptroller of the Currency

  • Monday, March 10, 2:00 p.m. – Acting Comptroller of the Currency Rodney Hood speaks on bank supervision at the Institute for International Bankers 2025 Annual Washington Conference.

 

The Consumer Financial Protection Bureau

  • There are no significant events scheduled at this time.

 

National Credit Union Administration

  • There are no significant events scheduled at this time.

 

FINRA

  • There are no significant events scheduled at this time.

 

Federal Housing Finance Agency

  • There are no significant events scheduled at this time.

 

Federal Trade Commission & Department of Justice Antitrust Division

  • There are no significant events scheduled at this time.

 

Farm Credit Administration

  • Thursday, March 13, 10:00 a.m. – The FCA Board meets.

 

Farm Credit Insurance Corporation

  • Wednesday, March 12, 10:00 a.m. – The FCIA Board meets.  The agenda includes payment from Allocated Insurance Reserve Accounts, a policy statement concerning contracting, the Report on Biennial Liquidity Assistance Exercise, the Annual Report on Contracts, and the Annual Report on Whistleblower Activity.

 

Small Business Administration

  • There are no significant events scheduled at this time.

 

International Monetary Fund & World Bank

  • There are no significant events scheduled at this time.

 

North American Securities Administrators Association

  • There are no significant events scheduled at this time.

  

Trade Associations Events

Trade Associations

 

 

Think Tanks and Other Events

  • Tuesday, March 11, 11:00 a.m. – The Brookings Institution will hold a hybrid event entitled “How New York is regulating financial services.”  New York Superintendent of Financial Services Adriene Harris will participate in a fireside chat.

 

 

 

 

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Francis Kelly
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