FEDERAL GOVERNMENT RELATIONS
Trump directs banking agencies to investigate, fix rules that contribute to debanking
President Trump issued an executive order that directs federal agencies to investigate whether financial institutions denied services to customers because of their political beliefs or because they were engaged in certain business activities, such as cryptocurrency.
Fed officials signal rate cuts amid economic slowdown
Federal Reserve officials are expressing concern about a cooling labor market and a slowing economy, with Minneapolis Fed President Neel Kashkari and San Francisco Fed President Mary Daly both advocating for two interest-rate cuts this year. Kashkari says economic growth is slowing, while Daly says she is increasingly uneasy about leaving rates unchanged.
Regulatory shifts may ignite new wave of bank M&A
U.S. regional banks for years have been hesitant to cross regulatory asset thresholds that lead to higher compliance costs and stricter oversight. Banks often are motivated to "leap" over the thresholds through mergers and acquisitions, rather than inch past and shoulder higher costs without the benefit of scale, says Gregory Lyons of the law firm Debevoise & Plimpton. Industry insiders are optimistic that the current deregulatory push will spur more dealmaking among regional banks, encourage slow growth and provide more competition to the biggest banks.
Trump directs agencies to explore opening 401(k) plans to crypto, alternative assets
President Trump issued an executive order directing the Secretary of Labor Lori Chavez-DeRemer to explore allowing the use of cryptocurrency and other alternative assets in 401(k) plans.
FinCEN issues list of red flags for possible crypto ATM scams
FinCEN issued a notice urging financial institutions to be vigilant in identifying and reporting suspicious activity involving convertible virtual currency kiosks, also known as crypto ATMs.
Senate passes industry-backed bill to curb abusive ‘trigger leads’
The Senate passed by unanimous consent legislation prohibiting credit reporting firms from selling mortgage applicant information to lenders who then barrage those same consumers with unwanted solicitations.
Fed begins work on revised Basel III capital proposal
The Federal Reserve has started drafting a new version of the Basel III endgame capital rules that is expected to be significantly revised from the prior proposal under the Biden administration. Led by Fed Vice Chair for Supervision Michelle Bowman, the revised plan aims to simplify capital calculations and reduce the previously projected 19% capital increase. Regulators have largely scrapped the original 1,087-page proposal and are targeting a new draft by early 2026. The move follows growing industry pressure and signals a shift toward more flexible capital requirements under current leadership.