FEDERAL GOVERNMENT RELATIONS
Regulators move to rescind 2023 CRA update
The Federal Reserve Board, the Federal Deposit Insurance Corp. and the Office of the Comptroller of Currency formally initiated the process of rescinding 2023 changes to the implementation of the Community Reinvestment Act. The move would roll the anti-redlining law back to its 1995 framework. Critics have said the 2023 revisions are overly complex and burdensome, particularly for community banks, and likely exceed statutory authority.
Read more from American Banker
Crypto bills advance in House after Trump intervention
House conservatives ended their blockade of cryptocurrency legislation after pressure from President Donald Trump and GOP leaders. The standoff had stalled votes on industry-backed bills, but it was resolved after leadership promised to consider a future ban on Federal Reserve-issued digital currencies. With that agreement, the House is moving forward with votes on stablecoin regulation and broader crypto market structure measures.
GOP working to dismantle key parts of Dodd-Frank Act
House Republicans are aiming to rescind major portions of the Dodd-Frank Act. House Financial Services Committee Chair French Hill, R-Ark., says the law has "punished community financial institutions" and "created new and unaccountable agencies," while Democrats are saying they will defend the law and the Consumer Financial Protection Bureau. The effort to weaken the landmark legislation is the latest salvo in an effort to dismantle key regulatory overhaul measures taken after the 2008 financial crisis.
Read more from the Wall Street Journal
FDIC rule would index regulatory thresholds for inflation
A proposal by the Federal Deposit Insurance Corp. would implement inflation indexing for key regulatory thresholds, with the goal of safeguarding smaller banks from regulatory burdens that arise due to inflation rather than growth or increased risk. The thresholds would be adjusted biennially based on the consumer price index, or sooner if inflation exceeds 8% within a year. Separately, the FDIC board voted to rescind a proposed rule that would have increased oversight of the corporate parents of industrial banks and industrial loan companies.
Read more from American Banker
Regulators issue crypto custody guidance for banks
Three federal regulators issued a joint statement advising banks holding cryptoassets to manage risks by maintaining control of cryptographic keys and identifying vulnerabilities. The Office of the Comptroller of the Currency, the Federal Reserve and the Federal Deposit Insurance Corp. said the guidelines reinforce existing risk management principles and do not introduce new supervisory expectations.