Cmte Financial Services (R) RSS Articles

Chairman Hill: The Trump Administration Is Returning the Prudential Regulators to Their Core Regulatory and Supervisory Mission

Thu, 04 Jun 2026 04:00:00 GMT

Today, the House Financial Services Committee, led by Chairman French Hill (AR-02), is holding a Full Committee hearing examining the supervisory and regulatory developments, rulemakings, and activities of the prudential regulators.

Read Chairman Hill's remarks as prepared for delivery:

"The Trump Administration is returning the prudential regulators to their core regulatory and supervisory mission of promoting safety and soundness in the financial system.

"Today’s hearing will provide an opportunity to discuss how their recent actions, priorities, and policies are aligned with their statutory mission entrusted to them by Congress.

"It will also highlight the work of this Committee to right-size prudential regulations for institutions of all sizes, focus the supervisory framework on material financial risks, and facilitate the formation of new institutions.

"Prudential regulation should foster economic opportunity, support responsible lending, and encourage long-term growth while maintaining confidence in our banking system.

"A sound prudential framework must have transparent, appropriately tailored regulations that are clear, efficient, and proportionate to the size, complexity, and risk profile of an institution.

"A one‑size‑fits‑all approach, by contrast, disproportionately harms community banks, credit unions, and regional institutions.

"That’s why this Committee held numerous hearings throughout the 119th Congress on our mission to Make Community Banking Great Again, which has culminated in our Main Street Capital Access Act.

"Many of the reforms contained in this legislation directly track with the actions being taken by the agencies before us.

"We also will highlight the progress being made to reverse the damaging Biden-era regulations and guidance that increased compliance costs, constrained lending, and threatened access to credit for American families and small businesses without providing clear benefits to safety and soundness.

"Among them was the original Basel III Endgame proposal, which would have significantly raised costs for homebuyers, consumers, and financial institutions without meaningfully improving financial stability.

"The revised Basel III proposal and the corresponding changes to the standardized approach and G‑SIB surcharge will better align capital with risk, address concerns about gold‑plating, and increase lending capacity while maintaining a safe and sound banking system.

"I am also proud of the work this Committee has done to advance legislation to provide a functional regulatory framework for the digital asset ecosystem.

"The Trump Administration has taken important steps to turn the page on the Biden-era approach to digital assets.

"These steps include withdrawing burdensome supervisory “non‑objection” regimes, providing greater clarity for banks using blockchain technology, and implementing the GENIUS Act to establish a clear framework for payment stablecoins.

"The Administration is demonstrating a commitment to supporting innovation while preserving consumer protection.

"Clear, predictable rules allow financial institutions to manage compliance, reduce unnecessary costs, expand access to credit, and invest in innovation as our financial system evolves.

"Policymakers must foster an environment that supports innovation while ensuring confidence in the strength and stability of our financial system.

"I look forward to hearing from our witnesses today, and I yield back."

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Chairman Hill and Vice Chairman Huizenga Warn Obama-Era Conflict Mineral Rules Undermine U.S. National Security

Wed, 03 Jun 2026 04:00:00 GMT

House Committee on Financial Services Chairman French Hill (AR-02) and Vice Chairman Bill Huizenga (MI-04) sent a letter to President Donald Trump urging the Administration to revise, waive, or terminate the Securities and Exchange Commission’s (SEC) conflict minerals disclosure requirements initiated by the Dodd-Frank Act.

In the letter, the Chairmen argue the ineffective Obama-era disclosure regime has weakened U.S. access to critical mineral supply chains while allowing China to expand its influence over strategically important resources in Central Africa. The letter encourages President Trump to allow the SEC to lift or overhaul the conflict mineral disclosure requirements to advance America’s national security interests, reduce the overreliance on China for critical minerals, and halt China from strengthening its dominance over mineral supply chains in Central Africa.

Read the full letter here.

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WSJ: This Housing Bill Is Progress, Not Perfection | Chairman French Hill

Tue, 02 Jun 2026 04:00:00 GMT

This Housing Bill is Progress, Not Perfection
Chairman French Hill (AR-02)
June 1, 2026

Your editorial is a sharp critique against the recently passed 21st Century ROAD to Housing Act (“A Bipartisan Housing Fiasco,” May 27). While no compromise in Congress is flawless, the board’s criticism focuses on grievances rather than the meaningful, supply-side reforms that will expand housing construction.

The bill modernizes the Department of Housing and Urban Development’s manufactured housing codes for the first time since the 1970s, eliminating the outdated federal permanent chassis mandate. This will reduce costs and unleash factory-built housing at scale.

The bill also updates the Housing Department’s HOME Investment Partnership Program, which hasn’t been reauthorized since 1992. This is the largest federal block grant program dedicated exclusively to affordable housing development. This bipartisan compromise cuts through the bureaucracy by exempting projects from duplicative environmental reviews that add immense delays and costs to construction.

We also secured critical community banking provisions to strengthen the lenders at the heart of America’s housing market. By modernizing the regulatory treatment of custodial and reciprocal deposits, this bill ensures that community banks retain deposits locally. That means more capital for community banks to finance mortgages and new housing construction.

This bill isn’t a silver bullet, but lawmaking is about progress, not perfection. The House-amended 21st Century Road to Housing Act will have a meaningful effect, increasing housing supply across the country.

WTAS: Financial Services Highlights Support for Commmittee’s Bipartisan Amendment to the 21st Century ROAD to Housing Act

Fri, 29 May 2026 04:00:00 GMT

Support for the Committee’s bipartisan amendment to the 21st Century ROAD to Housing Act has been rolling in since last week’s 396-13 passage through the House. To date, over 250 groups have expressed support for the amendment.

For a one-pager on the bill click here.

For a section-by-section on the bill click here.

For the Administration’s Statement of Administrative Policy, click here.

For more information click here.

Here is what they are saying:

National Association of Home Builders said, “NAHB applauds the House for overwhelmingly approving the revised 21st Century ROAD to Housing Act with strong bipartisan support. Led by House Financial Services Committee Chairman French Hill and Ranking Member Maxine Waters, the package eliminates a forced-sale provision on rental housing that would have reduced supply, raises and indexes multifamily loan limits to help spur new apartment development, and provides meaningful relief to community banks. We urge the Senate to move quickly to send a once-in-a-generation housing bill to President Trump to expand housing supply and address America’s housing affordability challenges.”

The Real Estate Roundtable said, “The latest amendment is focused where it should be — on increasing housing supply. Its sections to boost manufactured housing; help support renters interested in home ownership; build more homes in Opportunity Zones; streamline excessive environmental reviews that delay residential construction; encourage transit-oriented development; and promote much-needed land-use and zoning reforms, among other provisions, all add up to a comprehensive and robust package of smart housing policy.”

Independent Community Bankers of America and 44 state organizations said, “Community banks nationwide are eager to play a role in alleviating the housing crisis. With this in mind, we urge your support for the recently released, revised House version of the 21st Century ROAD to Housing Act which includes in Title IX, “Strengthening Community Banks’ Role in Housing,” provisions that would enable community banks to better serve local families, small businesses, and underserved communities without compromising financial stability. The provisions of Title IX passed the House on February 9th, 2026 with an overwhelming bipartisan vote of 390 to 9 and form a critical component of housing legislation.”

National Multifamily Housing Council said, “The National Multifamily Housing Council (NMHC) strongly supports the amended 21st Century ROAD to Housing Act as it protects and supports as many as 72,000 Build-to-Rent households every year while taking a major step forward in expanding the nation’s housing supply. Critically, the revised legislation will provide residents with greater housing choice and opportunities at a time when housing affordability is the single most important issue to individuals and families throughout the nation. We applaud the House Financial Services Committee and its leadership for their steadfast, bipartisan dedication and innovative approach to this legislation and now urge the Senate to quickly pass this Act for the President’s signature.”

Mortgage Bankers Association said, “MBA believes this bipartisan measure, as revised, represents a positive and balanced attempt to boost housing supply, expand affordable homeownership and rental opportunities, reduce unnecessary regulatory burdens to housing production, embrace modern manufactured and modular housing, and increase collaboration across all agencies that regulate the housing and real estate finance sectors.”

Housing Partnership Network said, “The revised legislation builds on the important work done by the Senate in the earlier version of the 21st Century ROAD to Housing Act and reflects a sustained bipartisan effort to address the nation’s housing supply and affordability challenges. We are particularly pleased to see the inclusion of important provisions that will modernize the HOME Investment Partnerships Program, allow for increased investment in the Housing Credit and make other common-sense improvements to existing housing programs.”

National Council of State Housing Agencies said, “The bill retains most of the bipartisan policies in the House’s prior version as well as the Senate’s version. It also makes important improvements that result in an even stronger bill overall. In particular, the House bill scheduled for consideration next week adds reforms to rural housing programs, includes a home repair pilot program, and ensures single-family built-to-rent communities owned by institutional investors, including communities financed with the Housing Credit for low-income households, remain a viable source of critically needed supply.”

Council of State Community Development Agencies said, “In addition to the HOME reforms in the Senate’s bill, Section 501 of the House amendment includes the full HOME Reform Act drafted by leaders of the Subcommittee on Housing and Insurance. Congress first authorized the HOME program in 1990 through the Cranston-Gonzalez National Affordable Housing Act. Since then, HOME has supported more than 1.4 million units of affordable housing for renters, home buyers, and homeowners. Despite the program’s success, Congress has not substantially modified HOME since its original authorization. COSCDA is pleased to see the full HOME Reform Act included in the House amendment as it represents a comprehensive effort to modernize the HOME program to address current development realities.”

National Housing Conference Coalition said, “We write to express our strong support for the House amendment to the 21st Century ROAD to Housing Act. This critically needed legislation makes a substantial down payment on efforts to address the housing affordability crisis affecting communities nationwide. We urge the House of Representatives to swiftly pass the amended bill and work with the Senate to send it to the President without delay.”

Up For Growth Coalition said, “America’s housing crisis demands action, and the amended language introduced for the 21st Century ROAD to Housing Act is a strong step forward. We write today to express our support for this legislation and to urge the House of Representatives to pass it without delay. As you know, building more homes is the best way to lower housing costs for American families. The House bill reflects that reality. It preserves pro-supply provisions while making critical corrections to ensure that the 21st Century ROAD to Housing Act truly meets its promise as a housing supply bill.”

American Fintech Council said, “Community banks remain a cornerstone of local lending and community development, and innovative banks are increasingly bringing this local approach to a national stage. Providing this targeted regulatory flexibility helps ensure these institutions can deploy capital to support housing supply, homeownership, and investment in the communities they serve. AFC supports inclusion of the community banking provisions already advanced by the House, in particular the bills that would strengthen community banks’ ability to serve customers while promoting access to financial services for more Americans.”

American Land Title Association said, “The amended 21st Century ROAD to Housing Act represents an important step in the legislative process toward enacting a bipartisan, bicameral bill that will strengthen housing supply and modernize federal housing policy while ensuring the real estate system remains reliable and secure for homebuyers and lenders.”

American Planning Association said, “The clear bipartisan agreement to address housing supply is vital to lowering costs and driving economic prosperity. This bill will spur and support the work of planners finding local solutions and reforming housing codes and systems. Now, we encourage the Senate to finish the job and deliver a landmark housing victory for Americans.”

Appraisal Institute said, “We appreciate Chairman Hill and Ranking Member Waters’ efforts in moving this important housing legislation one step closer to the President’s desk for his signature. These appraisal provisions reflect a thoughtful and balanced approach to modernization that strengthens consumer protections, supports workforce development, and preserves confidence in the valuation process.”

Arkansas Bankers Association said, “The Arkansas Bankers Association (“ABA”) applauds your work on the 21st Century ROAD to Housing Act, advancing legislation that recognizes the important role community banks play in expanding access to housing, supporting local economies, and keeping capital working in the communities we serve. Arkansas community banks are essential providers of credit for housing, small businesses, agricultural operations, municipal projects, and local economic development. For our members, the provisions in this Act are not abstract policy changes; they affect whether community banks can continue to compete, lend, and meet the needs of Arkansas families and businesses. ABA strongly supports the Act’s provisions designed to help community banks keep deposits local. This flexibility will help banks better retain and deploy local funding to support housing, community development, agriculture, and small business lending. It will also provide helpful clarity and flexibility for community banks while maintaining appropriate limits.”

Bipartisan Policy Center Action said, “The 21st Century ROAD to Housing Act, as passed by the House of Representatives, will help boost housing supply through commonsense regulatory reforms, modernizing federal programs, and encouraging states and local communities to adopt pro-housing policies. With so many families struggling with high housing costs, I commend the leadership of the House Financial Services Committee for advancing this critical bipartisan measure and urge Congress to come together to send a final housing bill to the president's desk."

Commercial Real Estate Finance Council said, “By refining the scope of investment regulations, the House revisions are a step in the right direction to protect the flow of capital necessary to increase housing supply and liquidity while addressing broader affordability challenges.”

Economic Innovation Group said, “The House’s passage of the 21st Century ROAD to Housing Act is welcome progress on one of the most pressing economic challenges facing American families. America cannot lower housing costs without building substantially more homes of all types. This legislation takes meaningful steps toward that goal, and Congress should move quickly to get it across the finish line. America’s housing shortage has raised the cost of living, limited mobility, and made it harder for workers and families to access opportunity. Meeting the scale of the challenge requires federal policy that is unambiguously pro-production across all dimensions: reducing barriers, improving financing tools, and supporting communities that want to grow. The 21st Century ROAD to Housing Act advances that goal.

Florida Bankers Association said, “This bill would help address high housing costs by reducing barriers to new construction, modernizing federal housing programs, and allowing banks to deploy more capital into their communities. For Florida, those reforms would help expand housing supply and improve access to homeownership. Community banks are critical to this effort. They are relationship-based mortgage lenders that serve first-time homebuyers, rural communities, and other local borrowers, and they also finance small businesses, entrepreneurs, and community growth. Right-sized regulation is essential so community banks can continue providing mortgage credit, housing development financing, and Main Street lending.”

Kentucky Bankers Association said, “The provisions of the Act, particularly Title IX, will allow our community banks to continue to serve as a leader in addressing Kentucky’s housing crisis. Specifically, the changes under the Act allow more flexibility with keeping deposits local, tailoring regulation appropriate with a bank’s size and risk profile, and halting uncertain methods and practices in supervision, all of which significantly benefit Kentucky’s community banks in allowing them to focus on serving consumers and their housing needs rather than unnecessary barriers to service.”

Leading Builders of America said, “This legislation, together with the President Trump’s Executive Order Removing Regulatory Barriers to Affordable Home Construction, will pave the wave toward increased housing affordability for American families. LBA urges the Senate to bring the House bill up for a floor vote as soon as possible.”

Lincoln Avenue Communities said, “Communities across the nation in urban, suburban, and rural areas alike are facing an acute housing affordability crisis that requires a multipronged policy response. The Amended 21st Century ROAD to Housing Act includes many impactful provisions that, when enacted, will strengthen the tools and resources affordable housing developers and stakeholders need to deliver more cost-effective, quality affordable housing where it is needed most.”

Manufactured Housing Institute said, “The inclusion of an entire title in the bill dedicated to manufactured housing reflects the strong bipartisan, bicameral recognition of manufactured housing as an essential segment of the housing market with tremendous potential to deliver more safe, affordable, efficient, and desirable homeownership opportunities for American families with the right policies in place. Removing outdated statutory requirements that a manufactured home be built on a permanent chassis will allow for more attractive and efficient design possibilities, particularly when complemented with provisions reaffirming HUD’s primacy and ultimate discretion with respect to regulations impacting manufactured housing.”

Mayors and CEOs for U.S. Housing Investment said, “The 21st Century ROAD to Housing Act addresses many of our coalition’s priorities by streamlining federal reviews for housing projects, modernizing programs, incentivizing local governments to address barriers to housing development, and increasing veterans’ access to federal housing programs. Additionally, the bill contains reforms to the Community Development Block Grant (CDBG) Program, such as adding affordable housing construction as an eligible activity.”

Modular Building Institute said, “As the voice of the commercial modular construction industry, the Modular Building Institute has been following the 21st Century ROAD to Housing Act since it was introduced, and we are pleased to offer our support for this landmark legislation. We believe the provisions related to the modular industry will protect consumers and provide avenues for the future study of the barriers to wider adoption of modular construction. America needs housing, and MBI’s members stand ready to build, and the 21st Century ROAD to Housing Act will allow our members to build more housing than ever before.”

National Association of Counties said, “The changes regarding the Community Development Block Grant (CDBG) and large institutional investors reflect meaningful engagement with county partners and demonstrate a clear commitment to addressing local concerns while advancing efforts to expand housing availability nationwide. As front-line administrators of CDBG and other federal housing programs, counties depend on stable, flexible federal partnerships to finance housing, infrastructure, and economic development investments tailored to local needs.”

National Association of Mortgage Brokers said, “For every home that is built, financed, or sold in America, mortgage brokers are working on the front lines to turn housing supply into actual homeownership opportunities. We are not peripheral to the housing equation — we are foundational. H.R. 6644 speaks directly to the barriers NAMB members encounter every day. From housing counseling improvements that prepare borrowers long before they reach a broker's desk, to supply barrier removal grants that help convert regulatory relief into actual units on the ground, this legislation takes a comprehensive view of what it truly means to make homeownership accessible.”

National Association of Realtors said, “This legislation confronts barriers to housing at all levels of government and represents the kind of comprehensive response needed to restore affordability and expand the dream of homeownership to more Americans. It gives communities new tools and resources to plan and build for growth, streamlines federal processes that delay construction, and updates financing options for manufactured and rural housing. The bill also modernizes federal programs, such as the HOME Investment Partnerships Program, to expand homeownership opportunities, takes steps to improve access to credit for homebuyers, and helps ensure veterans take full advantage of their VA home loan benefits.”

National Bankers Association said, “The legislation includes meaningful reforms designed to strengthen community and mission-driven financial institutions by reducing unnecessary regulatory burden, expanding access to stable deposits, improving flexibility for smaller banks, and encouraging new bank formation. These provisions recognize the important role community and mission- driven banks play in supporting small businesses, increasing access to credit, and driving economic growth in underserved communities.”

National Coalition of Housing Providers said, “The revised Act, like all compromise legislation, is not perfect. Nevertheless, it is one that our organizations support as it encompasses some of the most significant housing proposals in a generation. As the process moves forward, it will be vital that the final language safeguards millions of BTR homes and the individuals and families that are building their lives in them. The Act includes many meaningful reforms that will help modernize federal housing programs, reduce barriers to development, and encourage the production and preservation of more housing nationwide. This revised legislation will help communities expand housing supply, improve affordability and create more pathways to both rental housing and homeownership.”

National League of Cities said, “The House “21st Century Road to Housing Act” maintains important local government provisions that will improve existing programs like Community Development Block Grants and the HOME Investment Partnership Program, targets new resources to expedite uptake and adoption of administrative and service improvements, and reduces federal regulatory obstacles that unintentionally add to the cost of housing. These provisions, alongside important private-sector improvements to expand access to private capital, will foster more and better public-private partnerships in communities across the country to preserve existing housing, increase new housing, and reduce the cost to rent or buy a home.”

Public Housing Authorities Directors Association said, “PHADA strongly supports the House amendment to the 21st Century ROAD to Housing Act. The bill includes important bipartisan reforms to modernize federal housing programs, reduce barriers to affordable housing development, and provide communities with additional tools to address housing needs.”

Small Business & Entrepreneurship Council said, “The amendment recognizes the critical role of community banks and local financial institutions in supporting housing development and neighborhood revitalization. Preserving provisions that strengthen the capacity of community banks to participate in housing finance and lending is vital to expanding affordable housing opportunities and supporting long-term economic growth. The amendment also makes adjustments related to build-to-rent investment provisions. Build-to-rent communities have become an important part of the housing ecosystem mix, particularly for working families seeking attainable housing options in growing communities.”

Texas Bankers Association said, “Texas community banks serve as the backbone of local mortgage lending, small business finance, and rural economic development. By reducing unnecessary regulatory burdens, supporting de novo bank formation, and strengthening our banks’ ability to support their communities, the ROAD to Housing Act will help ensure that Texas community banks can compete and thrive. This legislation takes a balanced approach to expanding housing opportunities while recognizing the important role community banks play in helping families achieve homeownership, supporting local development, and driving economic growth in Texas and across the country.”

The Home Depot said, “The Home Depot applauds Chairman French Hill and the House for the overwhelming bipartisan passage of the 21st Century ROAD to Housing Act. This legislation addresses key barriers to housing production, cuts permitting delays, and supports critical repairs for existing housing stock. Unlocking housing inventory is the fastest way to drive broad-based economic growth, and we urge the Senate for swift passage.”

The Student Cottage Coalition said, “We support the House's amendments in Section 1001 of its latest text, which eliminates the disposal provision in the Senate text. These changes will prevent a wave of unintended socioeconomic problems in university communities across the country.”

U.S. Chamber of Commerce said, “The amendment also removes provisions that would have discouraged capital and limited flexibility for investment. These changes would help unlock housing construction, support workforce mobility, and strengthen economic growth. The U.S. Chamber stands ready to work with Congress to advance policies that expand housing supply, and we urge the House to pass the amendment to the 21st Century ROAD to Housing Act.”

Veterans Association of Real Estate Professionals said, “The legislation takes important steps to improve housing affordability, expand housing opportunities, and strengthen long-term housing stability, especially for servicemembers, veterans, and working families. VAREP especially applauds the VALID Act provisions, which help improve consumer awareness and support more informed use of the VA Home Loan benefit earned through military service.”

Veterans United Home Loans said, “This legislation takes meaningful steps toward improving the homeownership affordability crisis. We are particularly encouraged by the Veteran-specific provisions that will improve Veteran and service member awareness of their earned housing benefit. More broadly, we support the bill's efforts to reduce unnecessary regulatory barriers, modernize federal housing programs and expand affordable housing supply for families across the country. These changes will benefit the millions of Veterans and service members who call every corner of this nation home.”

Zillow said, “Zillow strongly supports the efforts in the House to pass housing legislation that improves both access and affordability. For millions of Americans, homeownership remains out of reach — not for lack of desire, but lack of supply and affordability. This legislation takes meaningful steps to change that, and Zillow stands ready to work with Congress to get housing legislation across the finish line.”

National Security, Illicit Finance, and International Financial Institutions Subcommittee Explores Tools to Combat Financial Crime

Fri, 22 May 2026 04:00:00 GMT

Yesterday, the House Financial Services Subcommittee on National Security, Illicit Finance, and International Financial Institutions, led by Chairman Warren Davidson (OH-08), examined ways Congress can modernize the U.S. anti-money laundering (AML) framework.

On Modernizing Defense Technology to Combat Money Laundering:

Full Committee Chairman French Hill (AR-02) said, “All these things mean that technology is such a fundamental component, and using it for compliance and using it for smart work, I think, is so key. I would argue that the current Bank Secrecy Act regime for banks is not taking advantage, you know, of the fact that we have technology and we have a lot of new tools.”

Subcommittee Chairman Davidson said, “What we need to do is ensure that lawful actors are able to transact in a secure and private manner. And we can do that with technology. We can ensure that a financial institution has the least amount of information that they need on an individual customer in order to make a decision, a decision that they are not engaging with an illicit actor. And we can use technology to ensure that today.”

Task Force on Monetary Policy, Treasury Market Resilience, and Economic Prosperity Chairman Frank Lucas (OK-03) questioned witnesses on proposed rulemaking for the AML program, to which Mr. Nicholas Anthony, Research Fellow, Cato Institute, responded, “It's good because it's talking about starting modernization, starting to change the way that we go about this process. But one of the big problems is partly what … Ranking Member Beatty had mentioned, where FinCEN really hasn't upheld the Anti-Money Laundering Act of 2020. One of the core things that Congress asked it to do was, in collaboration with other agencies, provide data on how this information is used. It provides some reports, but not nearly to the letter of the law. And that information needs to be the foundation of all modernization processes. We need to be able to see where it works, where it doesn't, and where a gray area might be before we build. So, good that they're starting the process of modernization and giving banks the ability to change how they do business. But still, there's a lot of work to be done.”

On Reducing Regulatory Burdens and Redundancy:

Rep. Lucas questioned witnesses on what it would mean for banks and consumers if FinCEN modernized CTR and the SAR thresholds, to which Mr. John Court, Executive Vice President, General Counsel and Chief Operating Officer, Bank Policy Institute, answered, “Modernizing the thresholds would certainly help, right? Currently, we have thresholds that are way too low, that are creating just too much volume, too much noise. I would say further, though, that is probably on the margins, honestly, what the proposed rule is trying to do and what the AMLA instructed the federal government to do six years ago was to try to get the boot of the federal bank examiners off the neck of the people inside the banks who are trying to fight financial crime. And unfortunately, you've had six years where nothing was done. So, we've been living with the status quo. This proposal gives us the opportunity, hopefully for the first time, to redirect the regulation that instructs the examiners.”

Subcommittee on Financial Institutions Chairman Andy Barr (KY-06) said, “Banks in Kentucky have complained in particular about the redundancy of current customer information. One piece of feedback is we have to fill out forms on existing customers when they're opening an additional account, and being able to use the original information on customers should be sufficient.”

Rep. Young Kim (CA-40) questioned witnesses on collecting and reporting beneficial ownership information, to which Mr. Court replied, “Well, the ideal state would be that they would get feedback. But that's not the state that we have. We've talked at the hearing today already about the very, very low uptick that any of these CTR or SAR reports generate. We've also talked about how the real impetus for many of the SAR filings that are made are not that they contain information that would be useful to law enforcement, but that they're made because the bank lives in fear of its bank examiners and the criticisms and the zero tolerance for any even minute error, which can lead to sanctions.”

On Bad Actors Weaponizing Loopholes:

Rep. Kim questioned witnesses on how bad actors weaponize loopholes to hurt human rights defenders, to which Mr. Anthony, replied, “We're seeing it growing more and more each year with bad actors like Russia, Nicaragua, China, and elsewhere, all coming in saying they recognize that the U.S. exported the Bank Secrecy Act to the rest of the world, got them all on the standard, and then they can use it for their means when they have their opponents or dissidents flee to other countries in exile, where the U.S. is supposed to be a haven for them, they're able to reach across their borders and use the financial system to target them. And we've seen that, like I said in my testimony, most recently with the Anti-Corruption Foundation. And this should be something that's really seriously concerning for us because effectively, the U.S. has handed this tool to authoritarians on a silver platter.”

Witnesses Echoed the Work of the Committee:

Mr. Court said, “One of the more delinquent elements of BSA modernization is in BSA reporting reform. In particular, reform of SAR and CTR requirements is urgently needed, as current frameworks are yielding limited law enforcement value in a majority of filings. We need to modernize SAR and CTR requirements so banks can spend less time on low-value, highly manual reporting and more time producing actionable intelligence for law enforcement.”

Mr. Ari Redbord, Global Head of Policy, TRM Labs, said, “We are living through a moment of profound technological transformation, and the single most important thing this subcommittee needs to understand is this: bad actors are early adopters of transformative technology. Criminal networks, rogue states, terrorist organizations, and fraud syndicates have always moved to exploit new technology before the legal frameworks designed to stop them can adapt. What is different today is the scale and speed of that advantage, and the specific power of the technology they are wielding. Artificial intelligence has fundamentally changed the economics of financial crime.”

Mr. Anthony said, “It has now been five years and FinCEN is still out of compliance with the law. Yet, in a painful bit of irony, FinCEN is issuing new rules telling banks how to comply with the law in its own attempt to modernize the Bank Secrecy Act. Modernization is welcome, but the first step should be understanding what is happening. The information regarding the effectiveness of the Bank Secrecy Act regime is critical for understanding what changes need to be made. Instead, Congress, financial institutions, and the broader public are stuck in the dark. As for FinCEN, the agency has been seemingly allowed to break the law with little to no consequences."

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ICYMI: Hill, Cleaver Tout House’s 396-13 Bipartisan Housing Win on Bret Baier’s Common Ground

Fri, 22 May 2026 04:00:00 GMT

Last night, House Committee on Financial Services Chairman French Hill (AR-02) and Housing and Insurance Subcommittee Ranking Member Emanuel Cleaver (MO-05), joined “Common Ground” on Special Report with Bret Baier to discuss the House’s overwhelmingly bipartisan 21^st Century ROAD to Housing Act. The bill passed the House of Representatives on Wednesday by a 396-13 vote.

Click here for a one-pager.

Click here for a section-by-section.

On H.R. 6644 becoming law:

“The question is can we find a housing bill that has bipartisan and bicameral support that President Trump can sign into law? Emanuel and I believe that bill is the one we just passed, which is the Senate bill amended by the House – 396 members of the House voted for it. That’s an overwhelming number and President Trump says that if the Senate passes it, he will sign it into law,” said Chairman Hill.

On bipartisanship and the importance of compromise:

“It doesn’t have everything everybody wants in it. We had to sacrifice. I had to give up some things that were in the House bill. Maxine Waters, who’s our Ranking Member in the House, we worked together to find a place where we could both be satisfied but not perfectly satisfied. And that’s called legislating,” said Chairman Hill.

“I’m proud of it. I will say it anywhere on the top of any mountain. I am proud and especially proud of the way we handled this. In other words, we didn’t get what we wanted. I don’t know anybody who said, ‘I got everything I wanted,’ and if they said that, they’re lying. Democracy demands debate and dialogue and that’s what we’ve had,” said Rep. Cleaver.

On a win for President Trump:

“President Trump wins in this bill as well. He spoke to the American people in the State of the Union and said that he wanted to not have institutional investors trying to outbid moms and dads for cash to buy a single-family house. That provision is in this bill in a way that meets the President’s goal but does not cut back on the ability to fund housing, increase housing stock. This bill, as amended by the House, will produce more housing at a more affordable price [and make housing] more accessible for more Americans across the country,” said Chairman Hill.

Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee Examines the Role of Bank-Fintech Partnerships in Modernizing Financial Services

Thu, 21 May 2026 04:00:00 GMT

Yesterday, the House Financial Services Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence, led by Chairman Bryan Steil (WI-01), examined how bank-fintech partnerships are modernizing financial services and expanding access to innovative products for consumers and businesses.

On the Need to Clarify Fintech Regulatory Frameworks:

Full Committee Chairman French Hill (AR-02) said, “I've seen firsthand throughout my experience that financial institutions’ embrace of technology can really enhance consumer choice and improve Americans' financial lives in so many different ways, and also improve the operation of the institution from a compliance point of view and documentation point of view. But, we also have to recognize that the purpose of this hearing today is to think about the regulatory framework. Do bank supervisors and examiners have the training they need? Are they properly accounting for these relationships?”

Subcommittee Chairman Steil questioned witnesses on market trends for bank fintech relationships, to which Ms. Barrage, Partner, Morrison Foerster, replied, "The types of arrangements that we're seeing are very focused on digital assets and AI, consistent with the mandate of this subcommittee. We are seeing banks looking to third parties to help them do digital asset custody, so on chain activities. We are seeing banks band together to figure out how they're going to do tokenized deposits with fintech parties. We are also seeing some banks publicly partner with exchanges to allow their customers to buy, sell, and hold crypto. So, there are a wide variety of these types of arrangements. I think they will continue. And on the AI side, as my testimony describes, I feel like there's a lot of opportunity for upscaling in this area.”

On Gaps in Fintech Regulations Compared to the Speed of Technological Change:

Full Committee Vice Chairman Bill Huizenga (MI-04) said, “We've seen supervisory attention to bank fintech arrangements accelerate, particularly under the Biden administration, in my opinion, but several witnesses have noted material examiners' expertise gaps. I think that's a polite way of saying we've got regulators that aren't up to speed necessarily. In fact, GAO had a 2023 report which flagged the need for examiner upscaling, that was their term, in fintech, IT, digital assets. … I personally had a couple of weeks ago an opportunity to spend four days in Silicon Valley looking at tech, looking at innovation that's happening. And frankly, I was struck by the speed of innovation, the speed of change in technology. And I think it underscored my fear, fear that many have, that regulations and regulators are not keeping up with the speed of change in business.”

On Supporting Responsible Innovation:

Rep. William Timmons (SC-04) said, “As this subcommittee continues to examine how emerging technologies are becoming more integrated into everyday finance, innovative partnerships between banks and fintech firms are helping make financial services more efficient and more accessible for consumers and small businesses. These partnerships are modernizing payments, expanding access to financial tools, and helping community banks compete in a rapidly changing economy. They also give consumers faster and more convenient ways to manage their finances in an increasingly digital world. At the same time, banks must continue to uphold strong standards for consumer protection, data security, and financial integrity.”

On the Benefits of Bank-Fintech Partnerships:

Rep. Mike Haridopolos (FL-08) questioned witnesses on how fintech relationships help small businesses, to which Ms. Khalili replied, “I think we've also talked a lot about access to credit and also choice in credit, and this is where we see the nontraditional underwriting metrics that are often utilized in these sort of fintech-bank partnership relationships really accrete to a broader credit box that is still safe and sound by utilizing nontraditional metrics that really allow you to see the full health and wellness of a business, rather than in real time, versus as trailing last month's bank statement sort of thing, which I think then allows for more products and services to be offered to the people that are most in need of them.”

Rep. Troy Downing (MT- 02) said, “Bank fintech partnerships have the ability to make it easier for constituents in very rural areas to access banking services. And Montana's second district is very rural. We have more cows than people. It's incumbent upon Congress and our regulators to ensure our laws foster modernization and innovation.”

Witnesses Echoed the Work of the Committee:

Ms. Barrage said, “This Committee has long championed innovation and responsible partnership between traditional financial institutions and technology companies. Bank-fintech partnerships, when structured thoughtfully and subject to appropriate regulatory oversight, represent a significant opportunity to expand access to financial services, modernize payments infrastructure, and enhance U.S. competitiveness. At the same time, these partnerships require sustained and robust compliance frameworks and oversight, subject matter expertise, and targeted reform.”

Ms. Henrietta Thomas, Executive General Manager for Advocacy, Risk & Compliance, Xero, said, “The United States has thousands of banks and credit unions — including the community banks and credit unions that serve the majority of America's small businesses. The vast majority of those institutions cannot realistically build and maintain direct bilateral API integrations with every platform that serves their customers. Fintech data networks are how those institutions — and the small businesses that bank with them — participate in the modern financial ecosystem. Far from displacing community banks, these partnerships extend their reach: a small business banking with a community bank in rural Wisconsin can connect that account to Xero through Plaid just as seamlessly as one banking with a major national institution. The bank channel and the data-network channel are not competing routes. They are two parts of one system.”

Ms. Sheetal Parikh, General Counsel & Chief Compliance Officer, Treasury Prime, said, “Bank-fintech partnerships are not a niche or experimental phenomenon. They are reshaping how tens of millions of Americans access financial services every day. When a small business owner opens a digital account through a vertical labor marketplace platform, when an underbanked consumer receives a paycheck two days early through a fintech payroll app, or when a corporate treasury team moves funds instantly across a payment network, a regulated bank is almost always present, even when the bank’s name is not the one the customer first sees. The fintech delivers the experience. The bank provides the regulated foundation.”

Ms. Erica Khalili, Co-founder, Chief Legal & Risk Officer, Lead Bank, said, “For these consumers, the financial products made possible by responsible bank-fintech partnerships represent a meaningful path to mainstream credit access. First, these partnerships dramatically reduce the cost of reaching underserved sectors. Digital partnerships reduce customer acquisition costs from between $100 and $200 per customer down to between $5 and $35, which is what makes it economically viable to serve populations that larger institutions have concluded are not cost-effective to reach through traditional channels. Second, partnerships supporting fintech underwriting tools enable credit decisions based on a more complete picture of a borrower’s financial life. Tools incorporating bill payment history, bank account balance trends, and other behavioral data can allow lenders to extend credit to borrowers who do not appear in traditional credit scoring models. The regulatory environment should reflect the importance of bank-fintech partnerships to consumers. Individuals who depend on responsible bank-fintech partnerships for access to products and services to meet their financial needs benefit from a well calibrated regulatory framework that holds banks to rigorous standards while also enabling responsible innovation.”

Capital Markets Subcommittee Reviews the U.S. Equity Markets

Thu, 21 May 2026 04:00:00 GMT

Yesterday, the House Financial Services Subcommittee on Capital Markets, led by Chairman Ann Wagner (MO-02), examined America’s equity markets to ensure the United States sustains its global leadership, superior liquidity, and retail accessibility.

On Revisiting Regulation National Market System (NMS) and Rule 611:

Full Committee Chairman French Hill (AR-02) said, “We've been talking about Chairman Atkins’ issue of calling the Order Protection Rule a misnomer, that it actually encourages market fragmentation. That's his assertion. If the Commission were to rescind 611, as you've talked about today, could a strengthened, data-driven FINRA Best Execution standard provide better outcomes for retail investors by looking at speed and fill probability over a narrow, top of book price?”

Subcommittee Chairman Wagner said, "Revisiting central tenets of Reg NMS, such as Rule 611, also known as the 'Trade-Through Rule,' will allow us to properly assess the effectiveness of market regulations and address any inefficiencies. Does a growing number of exchanges increase competition or just increase compliance costs? Are obstacles standing in the way of innovative new entrants into the market? Is Rule 611 securing the best outcome for investors? These questions all deserve careful consideration. Competitive and dynamic equity markets are directly tied to capital formation, and regulations should facilitate new offerings rather than throw sand into the market’s gears.”

On Maintaining Competitive and Dynamic Capital Markets:

Subcommittee on National Security, Illicit Finance, and International Institutions Chairman Warren Davidson (OH-08) said, “Our capital markets have remained dynamic. They're the envy of the world. We've got, you know, half of the world's capital invested in them. And we're here talking about ways to keep them vibrant. When you look at demand … Robinhood's done maybe more to attract retail investors than just about anybody.”

Rep Troy Downing (MT-02) asked what would jeopardize zero-commission trading, to which Mr. Matt Billings, Vice President of Brokerage and President, Robinhood Financial and Robinhood Securities, answered, “I would just be careful that if something came about that drove costs back to us, then we would drive costs back to the customer. I would want to be cautious if somebody went after payment for order flow. It's a known industry standard for many, many decades. At this point in time, we handle it thoughtfully. We balance our payment-for-order-flow. We have an equal across all of our execution partners, so we mitigate any conflict of interest. So that affords us to provide the services that we provide and all the customer support… and how we conduct our business.”

Rep. Stutzman (IN-03) said, “Over the last 21 years, Hoosiers have greatly benefited from the highly competitive equity markets underpinned by Reg NMS. Market innovation has allowed for efficient price discovery, reliable investor access, accurate quote handling, and orderly clearing and settlement. The number of Americans participating in our equity markets is near an all-time high, and Americans are accessing these markets earlier in their lives, including my 24- and 20-year-old sons. That said, just because the system is working well doesn't mean there aren't improvements to be made.”

Rep. Zach Nunn (IA-03) said, “A teacher in Des Moines or a retiree in Adel can trade commission-free, same as the Wall Street desk can. But 21 years of patched-together rules have piled up. And I think that's what I'm hearing from this group right now. Just consider this: the number of U.S. broker-dealers dropped by almost 30% between 2010 and 2024, even as industry assets grew by nearly $2 trillion. Now, I think anybody can look at that and say that's consolidation, plain and simple, and I think it puts Main Street guys back in Adel, Iowa, in a harder spot.”

Witnesses Echoed the Work of the Committee:

Dr. Robert Battalio, Professor of Finance at the Mendoza College of Business, University of Notre Dame, said, “The extension of Rule 605 execution quality reporting to brokers means that any broker that systematically avoids taking liquidity at the lowest cost will incur/report higher trading costs. Prior research suggests that investors will avoid brokers with inflated trading costs as reported by Rule 605 reports. Moreover, trading through better displayed prices creates problems with the customer service desks of brokers. As a result, brokers review trades at the end of every day (with the help of firms like S3) and demand that executing venues adjust the prices of orders that could have interacted with cheaper liquidity.”

Mr. Billings said, “Rule 611 was designed for a market structure that no longer exists. When the SEC adopted Reg NMS in 2005, floor-based exchanges like the NYSE and American Stock Exchange were protected from competition by an earlier iteration of the trade-through rule within the Intermarket Trading System. Rule 611 was originally intended to dismantle that protection and accelerate the shift to electronic trading. Those one-time benefits, however, have long since been realized. Shortly after Reg NMS was adopted, the NYSE demutualized, embraced electronic quoting, and merged with Archipelago Exchange. The floor-specialist model that Rule 611 was designed to disrupt is largely gone. What remains is a rule built for a problem that no longer exists.”

Mr. Kevin Kennedy, Executive Vice President and Head of North American Market Services, Nasdaq, said, “The U.S. has highly liquid markets that support investment savings, capital formation, and more broadly the economic success of the country. Displayed quotes on lit exchanges are foundational to the NBBO and the success of our markets. Off-exchange dark markets, while serving a legitimate and important need in today’s ecosystem, leverage displayed quotes as a reference for their own non-displayed prices, but dark markets do not contribute to displayed pricing. For that reason, policies that weaken incentives to display liquidity degrade the benchmark (i.e., NBBO) that investors use to assess execution quality. A strong NBBO benefits everyone: retail investors, institutional investors, issuers, and brokers alike. It lowers transaction costs, narrows spreads, and supports the confidence and trust that investors have in market outcomes. As markets evolve, preserving the integrity and usefulness of the NBBO should remain a foundational objective.”

Mr. Matt MacKenzie, Head of U.S. Policy and Regulatory Affairs, Optiver, on behalf of PTG Markets, said, “…[R]emoving or substantially revising Rule 611 would not leave investors in a vacuum. It would remove the rigid standard that is layered on top of a broader best execution framework. That broader framework is more adaptable because it asks whether an order received a favorable outcome under prevailing market conditions, not merely whether the routing process satisfied a mechanical protected-quotation hierarchy.”

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Davidson: If We Want to Stop Money Laundering by the Criminals, Scammers, and Terrorists of This Century, It's Time We Change Course

Thu, 21 May 2026 04:00:00 GMT

Today, the House Financial Services Committee is holding a National Security, Illicit Finance, and International Financial Institutions Subcommittee hearing, led by Subcommittee Chairman Warren Davidson (OH-08), on how Congress can modernize our nation's anti-money laundering framework.

Read Subcommittee Chairman Davidson's opening remarks as prepared for delivery:

"I want to welcome our witnesses. Thank you for participating in our hearing today.

"This hearing is the Subcommittee’s third hearing of the 119^th Congress on anti-money laundering. Last spring we examined the tools and techniques to combat fraud, and, in the fall, we heard from FinCEN Director, Andrea Gacki.

"Today we examine the Bank Secrecy Act itself, and how to modernize its architecture for today’s AML threat.

"The BSA was enacted in 1970 to target the abuse of our financial system by organized crime. Over the decades, it has become a bloated surveillance machine demanding endless reports without delivering proportional results.

"Every year, financial institutions file nearly 5 million suspicious activity reports, or SARs, and over 21 million currency transaction reports, CTRs, with FinCEN. That’s an average of 13,000 SARs and 59,000 CTRs every day.

"The SAR is typically filed when a financial institution has a transaction involves or aggregates $5,000 or more, and a CTR is filed on cash transactions involving more than $10,000.

"These reporting thresholds have never been adjusted for inflation. $10,000, the initial threshold established in the 70s for CTRs, would be more than $80,000 today.

"And most CTRs aren’t even looked at – according to a December 2024 GAO report, law enforcement agencies accessed only 5.4 percent of CTRs filed between 2014 and 2023.

"Meanwhile, the BSA enforcement drives financial institutions to file copious amounts of defensive SARs that serve no meaningful law-enforcement purpose.

"It’s not only CTRs and SARs, however. Under the Biden Administration, the Corporate Transparency Act would have compelled 30 million small businesses to file beneficial ownership information with FinCEN.

"I am thankful that the Trump Administration has rolled this back. Nor does it stop with the CTA. For instance, FinCEN’s Residential Real Estate Rule would have added even more reports to its overflowing database.

"All this unused reporting amounts to a reflexive desire to grow the BSA haystack rather than find the money-laundering needle. So I was pleased to see FinCEN release its AML Program Notice of Proposed Rulemaking in April.

"While it is disappointing that the NPRM does not address CTR or SAR thresholds, it is a welcome attempt to shift away from check-the-box defensive compliance to recenter AML on true risk.

"Furthermore, its moves to increase FinCEN control over enforcement actions and raise the threshold for enforcement should help financial institutions trust that good-faith, risk-based compliance and actionable intelligence will now be rewarded over a focus on volume and paperwork technicalities.

"As we focus on risk, we must also ensure that tools like artificial intelligence are fully deployed to counter the AI-enabled crimes of today.

"A wait-and-see approach that distrusts rapidly maturing AI systems will tie financial institutions’ hands behind their back, letting the bad guys continue to move money at the speed of the Internet while law enforcement is stuck in the 70s.

"If we truly want to stop money laundering by the criminals, scammers, and terrorists of this century, not the last, it’s time we change course.

"Increased reporting thresholds, AI, and a commitment to prioritizing risk give us the tools to do so.

"Put simply, we can continue to pile up reports on lawful activity, or we can exchange volume for actionable intelligence. It’s time to make this trade."

Steil: Bank-FinTech Partnerships Are a Win-Win

Wed, 20 May 2026 04:00:00 GMT

Today, the House Financial Services Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence, led by Subcommittee Chairman Bryan Steil (WI-01), is holding a hearing on bank-FinTech partnerships, examining how collaboration between banks and financial technology firms can drive innovation, expand consumer access, and keep the United States at the forefront of global financial innovation.

Read Subcommittee Chairman Steil’s opening remarks as prepared for delivery:

"When we think of innovators, we often picture scientists and engineers toiling away alone in their labs, or entrepreneurs building companies from a garage or dorm room.

"And while we continue to celebrate the achievements of individual innovators, some of the most important innovations in America are happening through collaboration.

"The financial services sector is a prime example.

"In fact, across the country, we see how collaboration in this sector has supercharged innovation, increased consumer choice, and broadened access to financial services.

"In our current financial system, innovation is increasingly driven by partnerships between banks and FinTechs working together to bring novel financial products and services to market and expand choice for all Americans.

"By combining the speed and technological expertise of software developers with the consumer protections, compliance, and trust of regulated banks, these partnerships are helping cement the United States as the global leader in financial innovation.

"Bank-FinTech partnerships are a win-win.

"FinTech firms gain a partner that can help them scale their business in a compliant way, while banks gain access to new technologies, consumer bases, and growth opportunities, and consumers reap the benefits.

"It is no surprise that we see community and regional banks leading the way in partnering with FinTechs.

"As FinTechs innovate, they can give consumers and businesses of all sizes access to more efficient financial services.

"With adherence to prudent risk management and strong oversight, these relationships can better serve communities.

"This includes facilitating expanded opportunities and inclusion in the form of access to financial services to those who may be less likely to access financial services through traditional bank products.

"As we examine the benefits these partnerships bring consumers, we must remain cognizant of managing risk and ensuring strong due diligence, consumer protection, and compliance safeguards.

"At the same time, federal regulators and examiners should not stifle innovation simply because a product or technology is new or unfamiliar.

"I look forward to exploring recent developments in this space, and hearing from our expert witnesses on what we can do to foster innovation through bank-FinTech partnerships."

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Markup of Various Measures

Wed, 01 Jul 2026 04:00:00 GMT

Click here to view the livestream of this markup.

Markup of Various Measures

Tue, 30 Jun 2026 14:00:00 GMT

Click here to view the livestream of this markup.

Hearing Entitled: “From Wall Street to Main Street: The Future of How America Invests”

Thu, 25 Jun 2026 14:00:00 GMT