The U.S. House Committee on Financial Services held an oversight hearing on how the Federal Reserve Board, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency and National Credit Union Administration are aligning supervision and rulemaking with the Committee’s objective of streamlining regulation and reducing compliance burdens for community banks and institutions of all sizes. Discussion focused on tailoring enhanced prudential standards, community bank regulatory thresholds, the Basel III “endgame” capital agenda, and alleged politically driven “debanking”. Chairman French Hill urged regulators to reconsider the application of enhanced prudential standards for category II, III and IV banks, and Federal Reserve Vice Chair for Supervision Michelle Bowman said she plans to review the tailoring framework to ensure it has the effect Congress intended in S. 2155. Subcommittee Chair Andy Barr said he is drafting legislation to index certain Dodd-Frank community bank thresholds, including the USD 10 billion asset trigger, to nominal GDP, while Bowman said the USD 10 billion threshold can disincentivize growth. Witnesses also pointed to broader modernization, including updating long-standing Bank Secrecy Act and anti-money laundering reporting thresholds for Currency Transaction Reports and Suspicious Activity Reports, and NCUA Chair Kyle Hauptman said the agency is reviewing its regulations to remove outdated and overly prescriptive requirements and focus on measurable and material risks. On stablecoins, FDIC Acting Chairman Travis Hill said the Guiding and Establishing National Innovation for U.S. Stablecoins Act assigns the FDIC responsibility for licensing and supervising subsidiaries of FDIC-supervised insured depository institutions approved to issue payment stablecoins. He said the FDIC expects to issue a proposed rule establishing an application framework in December 2025 and a proposal covering the Act’s prudential requirements in early 2026, including capital, liquidity and reserve asset diversification standards.
U.S. Financial Services Committee 2025-12-02
U.S. House Committee on Financial Services holds oversight hearing as Federal Reserve plans tailoring review and FDIC sets out GENIUS Act stablecoin rulemaking timeline
The U.S. House Committee on Financial Services held an oversight hearing on regulatory alignment by the Federal Reserve, FDIC, Office of the Comptroller of the Currency, and National Credit Union Administration. Key topics included prudential standards, community bank thresholds, and Bank Secrecy Act modernization. FDIC Acting Chairman Travis Hill discussed the Guiding and Establishing National Innovation for U.S. Stablecoins Act, noting a proposed rule on stablecoin-issuing subsidiaries by December 2025.