STATE GOVERNMENT RELATIONS
Bills to watch:
- Senate Bill 1 - Local government finance.
- House Bill 1001 - State budget.
- House Bill 1081 - Distributions to charitable beneficiaries.
- House Bill 1125 - Earned wage access services.
- House Bill 1523 - Public depositories.
- House Bill 1616 - Department of natural resources.
Senate Republicans’ budget plan eyes oversight for state elected officials’ travel
Under the Senate’s version of the state budget bill, the governor, the governor’s cabinet, the lieutenant governor and other state elected officials would be required to file an annual travel report documenting where they went in their official capacity, why, what total costs were incurred and what, if any, state funds were used for each trip.
Braun signs series of executive orders taking aim at IEDC
Gov. Mike Braun signed three executive orders targeting the Indiana Economic Development Corporation and looking to reshape the executive branch’s approach to economic development.
Read more from Indiana Public Broadcasting
FEDERAL GOVERNMENT RELATIONS
Fed's Bowman calls for regulatory alignment
Federal Reserve Governor Michelle Bowman has emphasized the need for regulatory alignment and cost-benefit analysis in new banking rules during her testimony before the Senate banking committee. Bowman responded to questions about a recent executive order by President Donald Trump that requires regulators to submit proposed rules for review, noting she will adhere to cost-benefit principles if confirmed.
Read more from American Banker
Rep. Barr aims to end OCC's new bank-merger rule via CRA
Rep. Andy Barr, R-Ky., filed a Congressional Review Act resolution that would invalidate the Office of the Comptroller of the Currency's revised bank-merger rule, which ended expedited reviews of certain deals. Barr's resolution mirrors a proposal from Sen. John Kennedy, R-La., and is part of a broader Republican effort to ease merger regulations after the Biden administration's stringent stance.
Read more from American Banker
House passes budget blueprint to advance tax priorities
The House has approved a budget blueprint to advance tax and other priorities in a 216-214 vote. Some Republican lawmakers had expressed concerns about spending, but they agreed to back the blueprint after leaders in the House and Senate said they wanted at least $1.5 trillion worth of cuts. As they continue to craft legislation, lawmakers will have to address other questions, such as how and whether to make modifications to Medicaid.
Read more from The Associated Press
Bessent: Treasury to be more involved in bank regulation
The Treasury Department will take a more active role in banking regulation through the Financial Stability Oversight Council and the President's Working Group on Financial Markets, Treasury Secretary Scott Bessent said. Regulation "should be efficient" and "strike an appropriate balance between costs and benefits," Bessent said.
Atkins confirmed as SEC chair by Senate
The Senate confirmed Paul Atkins as the new chair of the Securities and Exchange Commission on Wednesday in a 52-44 vote. Atkins, who previously served as an SEC commissioner, is expected to lead the agency through a period of regulatory easing, particularly concerning corporate disclosures and cryptocurrency regulations.
FDIC's Hill outlines new resolution standards
The Federal Deposit Insurance Corp. is revisiting compliance rules for large banks' resolution plans, exploring raising regulatory thresholds for inflation, and taking a more flexible stance on cryptocurrency activities and new bank charters, acting FDIC Chair Travis Hill said. In a speech Tuesday, Hill said the FDIC also will revisit Biden-era guidance and rules, monitor market fallout from tariffs, and pursue reforms around workplace conduct.
State-issued digital IDs push banks toward tech upgrades
Maryland, New York, Virginia and Utah are among the states that have begun issuing digital driver's licenses, and California is among more than a dozen states working toward providing such digital IDs. Mobile driver's licenses can assist banks in lowering fraud risk and enhancing customer authentication, experts say, encouraging banks to explore what technology will be necessary for the acceptance of such forms of digital ID.
Read more from American Banker
SCOTUS halts order to reinstate 16K federal employees
The U.S. Supreme Court has paused an order by a federal judge in California requiring the reinstatement of 16,000 federal employees with probationary status who lost their jobs in mass firings by the Trump administration. The high court, sidestepping the issue of whether the firings were legal, said the nonprofits challenging the terminations lacked standing to bring the lawsuit. Justices Sonia Sotomayor and Ketanji Brown Jackson said they would have allowed the lower court's order to stand.
DOJ shuts down cryptocurrency enforcement unit
A memo from Deputy Attorney General Todd Blanche says the Justice Department's National Cryptocurrency Enforcement Team "shall be disbanded effective immediately." Blanche also directed prosecutors to focus on crypto cases involving "those who use digital assets in furtherance of criminal offenses" such as drug cartel activity, terrorism and human trafficking.
Rep. Hill outlines GOP deregulatory plans for banks
House Financial Services Committee Chair French Hill, R-Ark., provided an overview of Republican lawmakers' plans for reducing bank regulation, discussing concerns about the compliance requirements of Dodd-Frank 1071 and efforts to curtail the scope of the Consumer Financial Protection Bureau. Hill also touched on stablecoin legislation and efforts to establish clear rules for digital asset handling that reassure banks such laws will not undermine traditional banking.
Read more from American Banker
Fed's Barr: Regulators must adapt as banks pursue AI
Federal Reserve Governor Michael Barr acknowledged that competition from fintech firms is pushing banks to adopt AI more rapidly, and he urged regulators to adapt accordingly. "Fintechs have a real role to play in helping to accelerate responsible innovation by banks" with regard to AI, Barr said, emphasizing the potential for symbiotic relationships between the two sectors.
More firms seeking bank charters amid regulatory shift
Fintech firms are increasingly interested in purchasing banks to obtain the benefits that bank charters provide. The trend has emerged after a lull in such deals during the Biden administration, with the Office of the Comptroller of the Currency's approval of SmartBiz Loans' acquisition of Detroit-based Centrust Bank potentially signaling a smoother path for fintechs. The ability to accept deposits and make loans is appealing to fintechs and other companies, but critics warn of increased systemic risk and regulatory challenges.