Cmte Financial Services (R) RSS Articles

Subcommittee on Financial Institutions Chairman Barr: The American Payments System is a Critical Component of Our Financial Infrastructure

Wed, 24 Jun 2026 04:00:00 GMT

Today, the House Financial Services Committee is holding a Full Committee hearing to examine payments innovation, the evolving role of banks and fintechs, and the opportunities and risks associated with special-purpose charters.

Read Subcommittee on Financial Institutions Chairman Andy Barr's (KY-06) remarks as prepared for delivery:

"Good morning.

"The Amerian payments system is a critical component of our financial infrastructure. It supports everything from payroll and commerce to lending and investment, allowing money to move throughout the economy efficiently, securely, and reliably.

"For generations, the United States has benefited from having one of the strongest and most trusted financial systems in the world.

"That success rests on a foundation of innovation, competition, and confidence, and a modern economy depends on a payments system capable of supporting all three.

"Today, new technologies, business models, and market participants are reshaping the payments landscape, creating new opportunities to improve efficiency, expand access, and strengthen competition. This market-driven evolution, in turn, raises important questions about the future of our regulatory framework.

"Mobile payment applications, digital wallets, real-time payments, and other emerging financial services technologies are becoming increasingly common, changing the way consumers, businesses, and all Americans interact with our financial system.

"As new entrants seek to provide payment services, questions regarding chartering, supervision, and access to payment infrastructure have become increasingly important.

"As our financial landscape has evolved, we have seen the emergence of specialized institutions operating under different legal and regulatory frameworks, including industrial loan companies, trust banks, money transmitters, and other special-purpose entities designed to provide specific financial services.

"Today's discussion will provide Members an opportunity to examine the latest developments in payments innovation and explore the role that banks and financial technology firms play in facilitating payments.

"Members will examine the history and purpose of various bank and non-bank charters.

"We will also review the regulatory and compliance obligations associated with these different structures.

"These developments raise important questions about regulation, risk management, competition, and access to critical financial infrastructure.

"As innovation continues to transform financial services, it is the responsibility of Congress to assess how existing regulatory and chartering frameworks are adapting to new technologies and business models.

"We must ask whether existing frameworks provide sufficient clarity for firms seeking to offer innovative payment services, whether regulation is being applied consistently across institutions, and whether there are opportunities to reduce unnecessary complexity while maintaining strong safeguards for consumers and businesses.

"Committee Republicans remain committed to advancing policies that provide greater regulatory certainty, consistency, and transparency to support innovation while maintaining the strong safeguards that underpin confidence in the U.S. financial system.

"We must ensure that the United States maintains a payments system that is dynamic and capable of supporting a twenty-first century economy.

"Achieving that goal requires fostering innovation, entrepreneurship, and competition while preserving the safety, stability, and trust that have long been the foundation of our financial system.

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

Full Committee Examines Payments Innovation and the Future of Financial Services

Wed, 24 Jun 2026 04:00:00 GMT

Today, the House Financial Services Committee examined the changing landscape of the nation’s payments system and its implications on bank and non-bank charters during a Full Committee hearing.

On Maintaining U.S. Leadership in Financial Innovation:

Subcommittee on Financial Institutions Chairman Andy Barr (KY-06) said, “For generations, the United States has benefited from having one of the strongest and most trusted financial systems in the world. That success rests on a foundation of innovation, competition, and confidence, and a modern economy depends on a payments system capable of supporting all three.”

Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence Chairman Bryan Steil (WI-01) said, “I think we all know innovation is occurring across all levels of the financial system, from our state-based institutions, fintechs, novel business models, and federally chartered banks. The dual banking system in the United States has allowed institutions to choose what charter and what model fits well for them. And it's one of the reasons the U.S is so diverse and innovative in our financial markets.”

Rep. John Rose (TN-06) said, “The United States stands at a critical inflection point in the future of payments. We are living through an era of rapid financial technology advancement. New firms are reimagining how families, workers, and small businesses send, receive, and store value. If our chartering framework does not evolve alongside this innovation, we risk falling behind. America's long-standing role as the global hub for fintechs and the preferred destination for startups is not guaranteed.”

On the Benefits of Payment Technologies on Small Businesses:

Small Business Committee Chairman Roger Williams (TX-25) said, “Small businesses are the backbone of our economy, whether it's a family-owned restaurant, a local retailer, or a startup trying to grow; every dollar matters. New payment technologies have the potential to lower costs, improve cash flow, and make it easier for businesses to serve their customers.”

Rep. Young Kim (CA-40) said, “… I represent the counties of Orange, Riverside, and San Bernardino in Southern California. And I've heard from so many of my constituents working in health care, retail, and other industries about how payments modernization is pivotal in helping small business owners make their payroll and get the workers their paychecks on time.”

Witnesses Highlighted the Need for Regulatory Clarity:

Mr. David Portilla, Partner and Co-Head, Financial Institutions, Davis Polk & Wardell LLP, said, “The recurring difficulty across chartering, payments licensing, and access to Federal Reserve services is the same: a framework organized around a bundled conception of banking has not fully adapted to a world in which the core banking functions have become increasingly unbundled. The remedy is not to force new business models into ill-fitting categories. Rather, responsible innovation is best fostered by clear legal standards about which charters and licenses are available, what activities they permit, and on what terms institutions may access Federal Reserve services. Having clear standards for these issues could spur a further wave of investment into the future of financial services.”

Mrs. Paige Paridon, Executive Vice President & Co-Head of Regulatory Affairs, Bank Policy Institute, said, “Technological innovation in the payments ecosystem has further increased the speed of payments, clearing, and settlement, providing even greater benefits to consumers and businesses. While fintechs and other nonbanks have engaged in payment innovation, significant innovation is also occurring within the banking sector. Banks are using new technologies to provide consumers and businesses with innovative products and services, consistent with the banks’ safe and sound operation.”

Mrs. Eileen O'Mara, Vice Chair, Stripe, said, "The question the committee is examining — how best to modernize payments — is not a narrow technical question. Getting paid quickly and reliably matters deeply to every business. It determines whether they hire the next employee, make the next investment, or survive the next slow month. Modernizing America’s financial infrastructure can help businesses grow faster."

Ms. Rachel Anderika, Head of Global Operations, Anchorage Digital said, “One important lesson I have learned is this: If America is going to continue to be the financial capital of the world, we need regulatory frameworks – federal and state – that allow innovation. ... Our regulator, the OCC, is focused on safety and soundness, fair access, consumer protections, and compliance with laws and regulations, and its work is ongoing. From my experience with the OCC, the agency has been rigorous in its supervision and steadfast in its obligations to apply laws and regulations to crypto banking. We are regulated on the same footing as any other bank in the OCC’s portfolio, and the agency is diligently investing resources to responsibly regulate digital asset activities as the industry grows.”

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Financial Services Committee's Bipartisan 21st Century ROAD to Housing Act Passes House, Heads to President's Desk

Tue, 23 Jun 2026 04:00:00 GMT

Today, the 21st Century ROAD to Housing Act, led by House Committee on Financial Services Chairman French Hill (R-AR), Ranking Member Maxine Waters (D-CA), Subcommittee on Housing and Insurance Chair Mike Flood (R-NE), and Subcommittee on Housing and Insurance Ranking Member Emanuel Cleaver (D-MO), passed the U.S. House of Representatives by a bipartisan vote of 358-32, clearing Congress and heading to President Trump for his signature.

Chairman Hill said, “For over two years, I have worked to give more Americans greater choice and affordability on the path to homeownership. Throughout the process, I have fought to increase the supply of housing, cut red tape, increase capital, and make local rules and zoning more competitive. We have achieved that by strengthening community banks, preventing institutional investors from outcompeting American families for homes, and modernizing building codes. This is a true bicameral, bipartisan product that demonstrates what can happen when both chambers work together to deliver real solutions. I thank Ranking Member Waters and Senate Banking Committee Chairman Tim Scott and Ranking Member Elizabeth Warren for their work in advancing this housing package.”

Speaker Mike Johnson (R-LA) stated, “With final passage of the 21st Century ROAD to Housing Act, Congress is paving a path back to homeownership for American families who have been locked out for far too long. This transformational legislation will help address the housing affordability problem, reduce regulations so builders can build, limit institutional investing in the housing market, and bring the American Dream back into reach for millions of young and working families. We are grateful to Chairman Hill, Ranking Member Waters, and our counterparts in the Senate for rolling up their sleeves to negotiate and achieve a bipartisan, bicameral bill that will now head to President Trump’s desk to be signed into law.”

Majority Leader Scalise (R-LA) added, “Today is a big win for families who want to achieve the American Dream of homeownership. The 21st Century ROAD to Housing Act takes critical steps to lower housing costs by cutting unnecessary red tape, increasing the housing supply, and make it easier for hardworking Americans to buy a home. This bill is an important part of House Republicans’ effort to lower costs and expand opportunity, helping more families put down roots and build a brighter future. I thank Chairman French Hill, Subcommittee Chair Mike Flood, and the Financial Services Committee for their leadership in advancing this important legislation.”

Majority Whip Tom Emmer (R-MN) said, “The 21st Century ROAD to Housing Act helps make the American dream a reality for everyday families. By lowering costs and cutting red tape, citizens across the country will have more affordable and better access to the housing market. A huge thank you to my friend Chairman French Hill of the Financial Services Committee for his leadership and perseverance in moving this bill across the finish line.”

House Republican Conference Chairwoman Lisa McClain (R-MI) said, “Americans are tired of watching the dream of homeownership slip further out of reach. House Republicans are focused on lowering costs, expanding housing supply, and giving families a fair shot at owning a home again. I'm especially proud this package includes provisions from my Modular Housing Production and Build Now Acts, which removes outdated financing barriers and gives families more affordable options. More choices, lower costs, and fewer bureaucratic hurdles is how we make the American Dream attainable again.”

Ranking Member Waters added, “Housing has long been my number one priority because I know firsthand the impact on families when they cannot afford a safe, stable place to call home. First-time homebuyers are finding the dream of homeownership increasingly out of reach, seniors are being forced to choose between the basic necessities of paying for rent, food or medication, and individuals continue to be pushed into homelessness across the nation. Nowhere is the affordability crisis more visible than in California, where housing costs remain among the highest in the nation. But this is not just a California problem—from urban areas to rural communities, Americans in every corner are feeling the weight of this housing crisis. I want to thank Chairman Hill for his willingness to engage in honest negotiations, work through difficult disagreements, and remain focused on delivering results for the American people. While we did not agree on every issue, we never lost sight of the families, seniors, veterans, and communities counting on Congress to act. This bill proves that when we stay focused on the people we serve, bipartisan progress is still possible.”

Subcommittee Chair Flood stated, “The 21st Century ROAD to Housing Act is a game changer. For too long, working families have been priced out of the American Dream by skyrocketing housing costs and burdensome red tape. This bill will build more homes, cut unnecessary regulations, and make homeownership a reality for many hardworking Americans. I’m grateful to Chairman French Hill, House leadership, Ranking Members Maxine Waters and Emanuel Cleaver, and President Trump for helping deliver this major win for families, communities, and the future of American homeownership.”

Rep. Cleaver said, “The cost of housing is the number one concern of American families. The historic housing package passed today is the culmination of years of bipartisan work to cut unnecessary red tape, modernize federal housing programs, and address our national housing affordability crisis. Chairman Hill, Ranking Member Waters, Chairman Flood, and I have worked tirelessly to bridge partisan divides and forge bipartisan solutions that will lower housing costs and revitalize the American dream for hardworking families in Missouri and all across this great nation. I’m extremely proud of the overwhelming support this legislation was able to garner in a deeply divided Congress, and I am hopeful it will serve as a blueprint for lawmakers seeking to address other challenges facing the American people.”

Further Background:

The House today passed H.R. 6644, the 21^st Century ROAD to Housing Act and sent the bill to the President’s desk. H.R. 6644 reduces unnecessary regulatory barriers to new home construction, modernizes HUD programs, addresses concerns about large investors unfairly competing with individual homebuyers, and enables community banks to more freely deploy funding.
The bill includes nine House community banking bills to provide needed relief to America’s main streets and expand local lending for housing construction and mortgages, along with 45+ provisions to reduce unnecessary regulatory barriers to new home construction and modernize HUD programs.
Lastly, the bill includes a prohibition on the issuance of a Central Bank Digital Currency (CBDC) until December 31, 2030.

Click here for the text of the bill.

Click here for a one-pager.

Click here for a section-by-section.

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Chairman Hill’s Statement on the Passing of Alan Greenspan

Mon, 22 Jun 2026 04:00:00 GMT

House Committee on Financial Services Chairman French Hill (AR-02) issued the following statement regarding the death of former Federal Reserve Chairman Alan Greenspan:

Chairman Hill said, “Martha and I were sad to read about the passing of our friend Alan Greenspan. I fondly recall all my interactions with the Chairman during my service in the Bush ‘41 Administration. He was funny, a gentleman and a heck of a competitive tennis player. He made lasting contributions in the oversight of our financial system and in the exercise of his authority as the Chairman of the Federal Reserve for 18 years.”

Earlier this year, the Committee recognized Chairman Greenspan's lasting legacy in celebration of his 100th birthday. A video of that tribute can be viewed here.

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National Review: Inflation Is Stealing from Americans, but the Price Stability Act Can Help

Mon, 22 Jun 2026 04:00:00 GMT

Inflation Is Stealing form Americans, but the Price Stability Act Can Help
Chairman French Hill (AR-02)
June 22, 2026

The rising cost of living facing American families didn’t happen overnight. It’s the result of years of reckless government spending, monetary policy errors, and a growing willingness in Washington to treat inflation as an acceptable trade-off for short-term political gain. As a result, families across the country are paying the price at the grocery store, at the gas pump, and in their monthly utility bills.

For working Americans, inflation is a pay cut. It quietly erodes the savings, income, and financial stability that families spend years building. Every dollar loses value. Every paycheck buys less. And for families living paycheck to paycheck, the consequences are detrimental.

That is why the Price Stability Act is so critical. It reflects a basic principle of sound monetary policy: Lasting economic growth depends on stable prices and confidence in the dollar.

Since 1977, however, the Federal Reserve (the Fed) has been directed by Congress to pursue a dual mandate of maximum employment and price stability. This structure has encouraged policymakers to prioritize short-term employment goals while underestimating the long-term consequences of inflation.

But here is what many Americans do not know: The Fed admits that maximum employment is “not directly measurable and changes over time owing largely to nonmonetary factors.” Moreover, the Fed views maximum employment as “the highest level of employment that can be achieved on a sustained basis in a context of price stability.” If maximum employment depends on price stability, yet is itself not measurable, unstable, and driven by factors beyond the Fed’s control, it is unachievable.

The consequences of this approach are real, and Americans have lived through them before. The inflation crisis of the 1970s emerged from years of fiscal policy excess; the Fed delayed monetary policy action and illustrated a political reluctance to confront economic reality. Former Fed Chairman Arthur Burns later warned about the “anguish of central banking,” describing how fear of unemployment had begun to overshadow the Fed’s responsibility to preserve price stability. Today, many of those same warning signs are difficult to ignore.

The Price Stability Act would restore clarity and accountability by replacing the Fed’s dual mandate with a single, focused mission of maintaining price stability. Under this framework, the Fed would concentrate on preserving the purchasing power of the dollar and controlling inflation before it spirals out of control. This would align the United States more closely with other major central banks worldwide, including the European Central Bank, the Bank of Japan, and the Bank of England, all of which prioritize price stability as their primary mission.

Massive deficit spending creating excessive stimulus and the growing acceptance of reckless economic doctrines such as “modern monetary theory” have fueled inflationary pressures burdening American families. The notion that the government can spend or print unlimited money without consequences is unfounded and irresponsible.

Inflation is a hidden tax, and it does not tax everyone equally. It places the greatest burden on the Americans who can least afford higher costs — working families, retirees, and members of low-income communities. When the costs of groceries, rent, gasoline, and childcare rise, families are forced to make painful choices about what they can afford and what they must go without.

Some argue that replacing the dual mandate with a single price-stability mandate is anti-employment. This is incorrect and a misunderstanding of how the economy works. The Fed’s tools can prevent and fight inflation. They cannot fix structural unemployment.

Employment levels are shaped by labor demand, driven by the structure of individual economic sectors and the economy as a whole, with continual change in response to technological innovation and shifting consumer tastes. Employment levels are also affected by the decisions of Congress and the executive branch through tax policy, regulatory decisions, and government spending. Asking the Fed to chase an unachievable employment target does not help workers. It distracts the Fed from its core job.

An economy propped up by inflated prices and overly accommodative monetary policy may appear strong for a time, but that kind of growth is fragile and unsustainable. Real prosperity comes from productivity, innovation, investment, and confidence in the future — not from policies that steadily erode the value of hard work and undermine trust in the dollar.

The Price Stability Act makes clear that protecting the value of the dollar matters. It restores monetary discipline, strengthens accountability, and puts the economic interests of working families first. Most importantly, it recognizes that inflation has real consequences for real people.

For families across the United States, price stability is not optional. It is essential.

Hill, Waters Applaud Senate Passage of 21st Century ROAD to Housing Act

Mon, 22 Jun 2026 04:00:00 GMT

House Committee on Financial Services Chairman French Hill (AR-02) and Ranking Member Maxine Waters (CA-43) issued the following statements after the Senate passed the 21^st Century ROAD to Housing Act:

“Housing affordability starts with supply, and this bill makes meaningful progress toward building more homes and lowering costs for American families. For the past two congresses Senate Banking Committee Chairman Tim Scott and I have prioritized a set of shared supply side policies that will benefit our citizens across the Nation. I thank Ranking Members Elizabeth Warren and Maxine Waters for their work advancing this housing package,” said Chairman Hill. “This bicameral product reflects meaningful House equities – including community banking provisions, protections against institutional investors crowding families out of the housing market, and updates HUD’s HOME Investment Partnership Program. I look forward to the House moving quickly to advance this bill to President Trump’s desk.”

Ranking Member Waters added, “Housing is the gateway to opportunity, stability, and economic prosperity. If we want to build a stronger nation where working families can succeed, it starts with taking our housing crisis head on by expanding affordability, increasing access, boosting supply, and creating pathways to homeownership. Understanding that reality is why I have said since day one that housing must be a national priority. By no means was this bill a small feat. It required difficult conversations and tough negotiations to get across the finish line. But in the end, we delivered stronger, more impactful legislation with more housing opportunities for the American people. That is why I commend Chair Hill, Senators Warren and Scott, Housing and Insurance Subcommittee Ranking Member Emanuel Cleaver, and Chair Mike Flood for coming together on this shared goal. This legislation will help increase housing supply and lower costs for families across the country. However, our work is far from over and this is not the end of the conversation. It is the beginning of a renewed effort to tackle our housing affordability crisis and ensure every American has access to a safe, decent, and affordable place to call home.”

The updated package reflects years of bipartisan work to cut red tape and remove unnecessary barriers to new home construction, as well as providing needed relief to community banks. Specifically, text includes:

Nine community banking bills that will provide needed relief to Main Street and expand local lending for housing construction and mortgages.
45+ housing provisions to reduce unnecessary regulatory barriers to new home construction and modernize HUD programs.
Retains the House changes to Section 1001, specifically the removal of the forced seven-year divestiture and protects Build to Rent.

Click here for the text of the bill.

Click here for a one pager.

Click here for a section by section.

Further Background:

On June 16, 2026, Chairman Hill, Ranking Member Waters, Senate Banking Committee Chairman Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA) released updated bicameral text of the 21^st Century ROAD to Housing Act.
On June 2, 2026, Chairman Hill published a letter to the editor in the Wall Street Journal on the 21^st Century ROAD to Housing Act.
On May 20, 2026, the House’s bipartisan amendments to the 21^st Century ROAD to Housing Act passed the House 396-13.
On May 19, 2026, Chairman Hill and Ranking Member Waters unveiled updated text to the 21^st Century ROAD to Housing Act.
On May 14, 2026, Chairman Hill issued a statement on the House’s amendment to the 21^st Century ROAD to Housing Act.
On March 23, 2026, Ranking Member Waters called for a Conference Committee to reconcile the House-and Senate-passed versions.
On March 12, 2026, Chairman Hill issued a statement on Senate passage of the 21^st Century ROAD to Housing Act.
On February 9, 2026, the Committee’s bipartisan Housing for the 21^st Century Act passed the House 390-9.
On February 6, 2026, Chairman Hill and Housing and Insurance Subcommittee Chairman Flood published an op-ed on the Housing for the 21^st Century Act.
On December 17, 2025, the Committee advanced the Housing for the 21^st Century Act 50-1.
On December 11, 2025, Chairman Hill, Ranking Member Waters, Housing and Insurance Subcommittee Chairman Mike Flood (NE-01) and Ranking Member Emanuel Cleaver (MO-05) released the Committee’s bipartisan housing package – the Housing for the 21^st Century Act.
On December 3, 2025, the full Committee held a hearing entitled “Building Capacity: Reducing Government Roadblocks to Housing Supply.” The Committee reviewed 41 bipartisan solutions to address barriers to affordable housing.
On July 16, 2025, the Subcommittee on Housing and Insurance held a hearing entitled “HOME 2.0: Modern Solutions to the Housing Shortage.”

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HEARINGS NOTICE: House Financial Services Committee Schedule for July 2026

Mon, 22 Jun 2026 04:00:00 GMT

Today, the House Committee on Financial Services, led by Chairman French Hill (AR-02), announced the following Committee activity for July 2026:

Full Committee Hearing Entitled: “The Federal Reserve’s Semi-Annual Monetary Policy Report”

Time: 10:00 AM ET

Date: Tuesday, July 14, 2026

Place: 2128 Rayburn House Office Building

Full Committee Hearing Entitled: “The Semi-Annual Report of the Bureau of Consumer Financial Protection”

Time: 10:00 AM ET

Date: Wednesday, July 15, 2026

Place: 2128 Rayburn House Office Building

Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee Field Hearing Entitled: “Building the Future of Finance: How the CLARITY Act Unlocks Innovation”

Time: 10:00 AM ET

Date: Friday, July 17, 2026

Place: New York, NY

National Security, Illicit Finance, and International Financial Institutions Subcommittee Hearing Entitled: “Oversight of the Financial Crimes Enforcement Network”

Time: 10:00 AM ET

Date: Tuesday, July 21, 2026

Place: 2128 Rayburn House Office Building

Housing and Insurance Subcommittee Hearing Entitled: “Oversight of the Federal Home Loan Bank System”

Time: 2:00 PM ET

Date: Tuesday, July 21, 2026

Place: 2128 Rayburn House Office Building

Task Force on Monetary Policy, Treasury Market Resilience, and Economic Prosperity Examines the Role of the Federal Reserve System

Thu, 18 Jun 2026 04:00:00 GMT

Last week, the House Financial Services Committee's Task Force on Monetary Policy, Treasury Market Resilience, and Economic Prosperity, led by Task Force Chairman Frank Lucas (OK-03), held a field hearing examining the structure of the Federal Reserve System and the role its federated framework plays in monetary policy.

On the Importance of the Federal Reserve’s Regional Structure:

Task Force Chairman Lucas said, “Whether it’s the inelasticity of demand, risk management practices, or the impact of global markets, equipment leasing, and the weather forecast – all of these issues determine how the economy moves through farm country. Monetary policy transmission is different in Oklahoma than it is in New York. That’s why it’s so important that our farmers and ranchers have a seat at the table when monetary policy decisions are being made.”

Rep. Tim Moore (NC-14) said, “Unlike most central banks around the world, the Federal Reserve was intentionally designed as a decentralized system, as it's been testified to previously, one that combines the national policymaking with regional representatives. Congress recognized that the economic conditions in New York may look different than those, for example, in my home state of North Carolina and, of course, here in Oklahoma. The Federal Reserve System was designed to ensure that monetary policy and banking supervision would be informed not only by data coming out of Washington, but also by the experiences of businesses and consumers from around the country. That regional perspective is particularly important for states like my home state, and I would say probably most states outside of some of the major banking or policy areas.”

On the Balance Between Federal Reserve Independence and Congressional Oversight:
Subcommittee on Financial Institutions Chairman Andy Barr (KY-06) said, “However, as you all know, there are critics of the Federal Reserve. And in recent history, a good example of critics pointing out that the Fed made a major mistake in 2021 is its underestimating how persistent inflation would become by describing it as 'transitory,' waiting too long to begin raising interest rates, and continuing quantitative easing, purchasing $120 billion per month in Treasury and MBS all the way through March 2022, when CPI was already almost 9%."

Subcommittee on National Security, Illicit Finance, and International Financial Institutions Chairman Warren Davidson (OH-08) questioned Mr. Thomas Hoenig, Distinguished Senior Fellow, Mercatus Center at George Mason University, on the role Congress can play in protecting payment privacy, to which he answered, "I think there are legitimate concerns about privacy and payments. It's not something that's outrageous. It is a legitimate concern. And as you develop, whether it's digital currency and the private sector, it still can be traced. So how are you going to do that? And that is an open question that I think is now being discussed in Congress in terms of the laws around stablecoin and around cryptocurrency and tokens. And I hope—not to put it back on you—but I hope Congress defines the rules clearly because I don't think it's the Fed's business to be defining what the criteria should be. It's the Fed's business to follow what Congress has assigned them."

Witnesses Echoed the Work of the Committee:

Ms. Esther George, Former President and Chief Executive Officer, Federal Reserve Bank of Kansas City, said, “Independent, stable and informed leadership is especially important to the Federal Reserve’s policymaking process. Policy decisions have a broad impact and benefit from the institution’s research, thoughtful analysis and public input. Experience and informed judgement are as important to good policy as academic and theoretical frameworks.”

Mr. Hoenig said, “As the name suggests, the Federal Reserve System’s structure divides power between central and regional authorities and between public and private interests. As a former Reserve Bank president, I am confident that such a system is the more effective (though not perfect) framework for assuring diversity of views and achieving better policy outcomes for a nation as complex and diverse as the United States.”

Mr. Gary Kelly, Deputy Chair, Board of Directors, Federal Reserve Bank of Dallas, said, “Reserve Banks operate for the good of their Districts and the Nation and remain accountable through multiple channels. For example, the Board of Governors has oversight responsibilities for the Reserve Banks. In addition, the Reserve Banks remain accountable to the American people through their extensive public dialogue and communications, which provide transparency, and through their Board of Directors. I believe this accountability is essential in a representative democracy, and in my experience, the Fed takes its accountability very seriously.”

Mr. Benjamin Keen, Associate Professor of Economics, University of Oklahoma, said, “Federal Reserve policy questions have repeatedly become the foundation for scholarly research. Economists at Federal Reserve Banks encounter problems involving inflation, interest rates, monetary aggregates, financial conditions, labor markets, and regional economic developments. Those practical policy issues can evolve into research questions that scholars examine, test, and refine over time.”

Hill and Davidson Urge FinCEN to Modernize AML Rules and Prioritize High-Risk Financial Crimes

Wed, 17 Jun 2026 04:00:00 GMT

House Committee on Financial Services Chairman French Hill (AR-02) and Subcommittee on National Security, Illicit Finance, and International Financial Institutions Chairman Warren Davidson (OH-08) recently sent a letter to Andrea Gacki, Director of the Financial Crimes Enforcement Network (FinCEN).

In the letter, Hill and Davidson urge FinCEN to finalize its Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) rule to reduce unnecessary compliance burdens, raise outdated reporting thresholds, encourage AI-driven risk monitoring, and refocus the Bank Secrecy Act on producing actionable intelligence for law enforcement.

Read the letter HERE.

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Lucas: Monetary Policy Transmission is Different in Oklahoma than it is in New York

Fri, 12 Jun 2026 04:00:00 GMT

Today, the House Financial Services Committee is holding a Task Force on Monetary Policy, Treasury Market Resilience, and Economic Prosperity field hearing, led by Task Force Chairman Frank Lucas (OK-03), titled "Examining the Structure of the Federal Reserve System."

Read Task Force Chairman Lucas' opening remarks as prepared for delivery:

"Good morning. To my colleagues and our witnesses – welcome to Oklahoma City! I am grateful to everyone that traveled to join us here today.

"Today’s field hearing of the Task Force on Monetary Policy, Treasury Market Resilience, and Economic Prosperity is focused on the topic of the structure of the Federal Reserve System.

"It is fitting for us to be discussing this topic while in the heartland of the country. One of Oklahoma’s first Senators – Robert Owen – saw the failures of the first two central banks and knew that part of the reason they were not enduring, was because they weren’t appropriately responsive to the concerns of Americans across the country.

"That’s why, as the sponsor of the Federal Reserve Act of 1913, Senator Owen set up the federated system that we have today – 12 private Reserve Banks with district-specific geographic and industrial expertise overseen by the Board of Governors in Washington, DC.

"The Reserve Banks act as lender and supervisor of member banks, ensure the safety of our payments system, and inform monetary policy.

"This private-public partnership we have with our central bank serves as a check against the federal government dominating our monetary system.

"The Boards of Directors for each of the banks are composed of nine directors – three representing member banks, three representing the public, and three appointed by the Board of Governors with consideration of agriculture, commerce, industry, services, labor, and consumers. They play an essential role in governing the Reserve Bank and ensuring they represent the districts they serve.

"Importantly, the 1913 Act also set up the Federal Advisory Council for the Board. It is comprised of one banking representative from each of the districts who bring insight and analysis directly to the Board.

"The Community Advisory Council also allows for direct representation from community leaders and industry experts to enlighten the Board on economic conditions around the country.

"By design, each district brings to the table its own perspective – our nation has many differing viewpoints, and our central bank should be able to reflect all of them.

"St. Louis developed the impressive database ‘FRED’ to provide the broader system and the public with the Fed’s economic data. Dallas provides extensive oil industry expertise. Richmond has a special focus on the economic conditions of rural communities.

"The Kansas City Bank supports the broader system through its expertise in agricultural economics. As someone with a degree in the subject, I know well the unique considerations of raising food and fiber and those economic impacts.

"Whether it’s the inelasticity of demand, risk management practices, or the impact of global markets, equipment leasing, and the weather forecast – all of these issues determine how the economy moves through farm country.

"Monetary policy transmission is different in Oklahoma than it is in New York.

"That’s why it’s so important that our farmers and ranchers have a seat at the table when monetary policy decisions are being made.

"Through rotating voting seats at the Federal Open Market Committee, five Reserve Bank Presidents help set the administered rates. The Reserve Banks act as the conscience of the FOMC.

"Thank you again for being here for this important discussion.

"I yield back."

Hearing Entitled: Oversight of the Federal Home Loan Bank System

Tue, 21 Jul 2026 18:00:00 GMT