Cmte Financial Services (R) RSS Articles

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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Financial Services Committee’s Bipartisan 21st Century ROAD to Housing Act Passes House

Wed, 20 May 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 full U.S. House of Representatives by an overwhelming bipartisan vote of 396-13.

The House-passed resolution amends the Senate-passed version of the legislation, addressing concerns from House members and market participants with a more balanced and workable approach. The amended bill restores critical community banking provisions while preserving key measures to streamline housing development, improve affordability, encourage new construction, update outdated HUD programs, and eliminate burdensome regulatory barriers.

Chairman Hill said, “Today, we proved Washington still works. After months of bipartisan, bicameral negotiations – and with the partnership of the Trump Administration – the House delivered to make housing more accessible and affordable for American families. I urge the Senate to move expeditiously to get our amended bill to President Trump’s desk and deliver the relief Americans have been waiting for.”

Speaker Mike Johnson (R-LA) stated, “The 21st Century ROAD to Housing Act is transformational legislation that will immediately address the housing affordability problem and bring the American Dream back within reach for millions of young and working American families. This bill delivers on our promise to reduce restrictive regulations, increase the housing supply, limit institutional investing in the housing market, and drive down the price of homes nationwide. Chairman Hill, Ranking Member Waters, and the entire House Financial Services Committee did exceptional work to achieve a bipartisan product that delivers the housing policy President Trump has called for and that voters demand. We are grateful that a strong, bipartisan majority of the House voted to pass this legislation today, and we urge the Senate to swiftly do the same.”

Majority Leader Scalise (R-LA) added, “House Republicans are focused on making the American Dream more attainable again for hardworking families. After years of rising costs and burdensome regulations driving homeownership further out of reach, the 21st Century ROAD to Housing Act takes meaningful steps to increase the supply of homes and cut the red tape standing in the way. I’m grateful to Chairman French Hill, Subcommittee Chair Mike Flood, and the Financial Services Committee for their leadership in drafting real solutions that will help more Americans buy a home and build a better future for their families.”

Majority Whip Tom Emmer (R-MN) said, "Homeownership is central to the American Dream. The American people elected Republicans into office because they were tired of this milestone getting further and further away from them. But thankfully, President Trump and Republicans are making the American Dream achievable once again. By passing the 21st Century ROAD to Housing Act, we're continuing to deliver wins for hardworking Americans. This could not have been accomplished without the tireless work of Chairman Hill.”

House Republican Conference Chairwoman Lisa McClain (R-MI) said, “Americans are tired of watching the dream of homeownership slip further out of reach while Washington keeps piling on costs, delays, and bureaucracy. House Republicans are focused on lowering costs, building more homes, and giving families a fair shot at owning a home again. I’m especially proud that this package includes language from my Modular Housing Production Act to help expand access to affordable modular and factory-built housing. Families should not be punished with outdated financing rules just because they choose a more affordable path to homeownership.”

Ranking Member Waters added, “This housing bill is the result of a broad, bipartisan and bicameral legislative process, and is a huge step towards finally addressing the affordable housing and homelessness crises in this country. Americans deserve the peace of mind that comes with having a roof over their heads, the opportunity to build wealth through homeownership, and the dignity of knowing that working hard should be enough to afford a place to live. I am beyond proud of this legislation and the benefits it will bring to all of our cities, counties and states. The Senate must meet this moment with the same urgency and determination and quickly pass this bill. The American people deserve action, not more delays.”

Subcommittee Chair Flood stated, “The 21st Century ROAD to Housing Act, as amended by the House, is landmark legislation that will benefit renters, homeowners, and families hoping to buy a home across the country. The leadership of Chairman Hill and Ranking Member Waters has been instrumental in making this a reality, along with the leadership of President Trump. I hope the Senate takes up the bill without delay so we can make this bill law as soon as possible.”

Rep. Cleaver said, “While the American people are drowning under the rising cost-of-living crisis, Congress has an opportunity to provide a desperately needed lifeline by passing comprehensive, bipartisan housing reforms that will lower costs for families nationwide. For over a year, I have worked with Chairman Hill, Ranking Member Waters, and Chairman Flood to craft legislation that will cut through unnecessary regulations and boost the development of affordable housing. I’m pleased that work has paid off with today’s legislation, which was passed with overwhelming bipartisan support. Now, I look forward to working with our Senate colleagues to get this legislation across the finish line and deliver relief to the American people.”

Click here for the text of the bill.

Click here for a one-pager.

Click here for a section-by-section.

Wagner: Maintaining High Liquidity and Innovative Technology Is Crucial to Ensuring Our Capital Markets Are the Best in the World

Wed, 20 May 2026 04:00:00 GMT

Today, the House Financial Services Committee is holding a Capital Markets Subcommittee hearing, led by Subcommittee Chair Anne Wagner (MO-02), to review how effective certain regulations are in ensuring competitive and dynamic equity markets.

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

"Good afternoon and thank you all for joining us today.

"The last time this subcommittee held a hearing on equity market structure, we examined the drastic and burdensome regulations put forward by former SEC Chair Gary Gensler.

"Thankfully, those proposals did not take effect, and investors continue to enjoy fast, efficient, and fair markets.

"Although equity market structure is complex and intricate, these rules impact investors and companies of all sizes.

"There is no question that retail investors have benefited tremendously from the introduction of zero-commission trading.

"Since it became the industry standard in 2019, zero-commission trading has driven a surge in the number of American households invested in our markets as well as the value of those investments.

"Between 2023 and 2025, the volume of retail investments rose by nearly 50 percent.

"However, it has been over two decades since the SEC adopted the rules that still govern our market structure in Regulation National Market System, or “Reg NMS.”

"In that time, technology has evolved, order routing has become more complex, and compliance costs have multiplied. Critics argue that Reg NMS stifles competition and innovation through increased government intervention.

"As Chairman Atkins has observed, “Reg NMS gave the SEC an opening to substitute, indeed supplant, its own judgment for that of the marketplace.”

"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.

"Earlier this year, for the first time, U.S. equity trading eclipsed one trillion dollars in volume in a single a day, a remarkable testament to the strength and liquidity of our markets.

"It shows exactly why companies from around the world choose U.S. exchanges for their public offerings.

"Maintaining high liquidity and innovative technology is crucial to making our capital markets the best destination in the world for everything from IPOs to secondary offerings.

"Twenty years in, it is time to consider how modernizing equity market structure requires updating Reg NMS, and I’m grateful Chairman Atkins has undertaken a comprehensive review to determine how these rules can better serve investors.

"Because if regulations fail to evolve alongside today’s capital markets, investors will ultimately bear the price.

"I would like to thank our witnesses for their testimony today and I look forward to our discussion."

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HEARINGS NOTICE: House Financial Services Committee Schedule for June 2026

Wed, 20 May 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 June 2026:

Full Committee Hearing Entitled: “Oversight of Prudential Regulators”

Time: 10:00 AM ET

Date: Thursday, June 4, 2026

Place: 2128 Rayburn House Office Building

Oversight and Investigations Subcommittee Hearing Entitled: “Converging Criminal Enterprises: Chinese Money Laundering Networks and Cartel Financing in the U.S. Financial System”

Time: 10:00 AM ET

Date: Tuesday, June 9, 2026

Place: 2128 Rayburn House Office Building

Housing & Insurance Subcommittee Hearing Entitled: “Examining Local Needs in Disaster Recovery”

Time: 10:00 AM ET

Date: Wednesday, June 10, 2026

Place: 2128 Rayburn House Office Building

Task Force on Monetary Policy, Treasury Market Resilience, and Economic Prosperity Field Hearing Entitled: “Examining the Structure of the Federal Reserve System”

Time: 10:00 AM CT

Date: Friday, June 12, 2026

Place: Oklahoma City, OK

Full Committee Hearing Entitled: “Future of Payments: Promoting Innovation and Fair Markets”

Time: 10:00 AM ET

Date: Wednesday, June 24, 2026

Place: 2128 Rayburn House Office Building

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

Time: 10:00 AM ET

Date: Thursday, June 25, 2026

Place: 2128 Rayburn House Office Building

Markup of Various Measures

Time: 10:00 AM ET

Date: Tuesday, June 30, 2026

Place: 2128 Rayburn House Office Building

Markup of Various Measures

Time: 10:00 AM ET

Date: Wednesday, July 1, 2026

Place: 2128 Rayburn House Office Building

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House Passes Four Bipartisan Financial Services Bills

Wed, 20 May 2026 04:00:00 GMT

Today, the House of Representatives passed four bills from the House Committee on Financial Services.

H.R. 1993- the 25 ^th Anniversary of 9/11 Commemorative Coin Act, sponsored by Rep. Daniel Goldman (NY-10), Rep. Mike Lawler (NY-17), and Rep. Andrew Garbarino (NY-02) and, passed the House 415-0. H.R. 1993 requires the Secretary of the Treasury to mint commemorative coins honoring the 25th anniversary of the September 11 terrorist attacks, supporting programs at the National September 11 Memorial and Museum.

Watch Chairman French Hill (AR-02) speak in support of the bill here.
Watch Rep. Lawler speak in support of the bill here.
Watch Rep. Garbarino speak in support of the bill here.

H.R. 3234- Keeping Deposits Local Act, sponsored by Majority Whip Tom Emmer (MN-06) and Representative Joyce Beatty (OH-03), passed the House 405-0. H.R. 3234 increases reciprocal deposit limits for community banks and expands eligibility standards, helping local institutions keep deposits in their communities and strengthen lending capacity for families and small businesses.

Watch Chairman Hill speak in support of the bill here.
Watch Whip Emmer speak in support of the bill here.

H.R. 4544- American Access to Banking Act, sponsored by Ranking Member Maxine Waters (CA-43), passed the House 405-4. H.R. 4544 directs Federal banking and credit union regulators to streamline the de novo application process to support smaller lenders, expand mortgage access, and improve financing options for first-time homebuyers and underserved communities.

Watch Chairman Hill speak in support of the bill here.

H.R. 5317- Community Bank Deposit Access Act , sponsored by Chairman Hill, passed the House 393-16. H.R. 5317 strengthens access to deposit placement services for community banks, allowing them to better compete for deposits, support local lending, and serve rural and small-town economies.

Watch Chairman Hill speak in support of the bill here.

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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

Click here to view the livestream of this hearing.

Hearing Entitled: “Future of Payments: Promoting Innovation and Fair Markets”

Wed, 24 Jun 2026 14:00:00 GMT

Click here to view the livestream of this hearing.

Field Hearing Entitled: “Examining the Structure of the Federal Reserve System”

Fri, 12 Jun 2026 15:00:00 GMT

Click here to view the livestream of this hearing.

Hearing Entitled: Examining Local Needs in Disaster Recovery

Wed, 10 Jun 2026 14:00:00 GMT

Click here to view the livestream of this hearing.

Hearing Entitled: “Converging Criminal Enterprises: Chinese Money Laundering Networks and Cartel Financing in the U.S. Financial System”

Tue, 09 Jun 2026 14:00:00 GMT

Click here to view the livestream of this hearing.

Hearing Entitled: Oversight of Prudential Regulators

Thu, 04 Jun 2026 14:00:00 GMT

Click here to view the livestream of this hearing.

Hearing Entitled: From Order to Execution: Ensuring Efficient and Transparent Equity Markets”

Wed, 20 May 2026 18:00:00 GMT

Click here to view the livestream of this hearing.

Click here to view the Committee Memorandum.

Witnesses

Dr. Robert Battalio, Professor of Finance at the Mendoza College of Business, University of Notre Dame
Mr. Matt Billings, Vice President of Brokerage and President, Robinhood Financial and Robinhood Securities
Mr. Kevin Kennedy, Executive Vice President and Head of North American Market Services, Nasdaq
Mr. Matt MacKenzie, Head of U.S. Policy and Regulatory Affairs, Optiver, on behalf of PTG Markets
Mr. Joseph Saluzzi, Partner and Co-Founder, Themis Trading

Legislation

H.R. 3197, the Fortifying U.S. Markets From Chinese Military Aggression Act
H.R. 1483, the Protecting Investors’ Personally Identifiable Information Act
H.R. ___, the SEC Regulatory Accountability Act
H.R.___, the Review the Expansion of Government (REG) Act of 2026

Hearing Entitled: Partnering for Innovation: How Bank-Fintech Collaborations Enhance Financial Infrastructure

Wed, 20 May 2026 14:00:00 GMT

Click here to view the livestream of this hearing.

Click here to view the Committee Memorandum.

Witnesses

Ms. Alexandra Steinberg Barrage, Partner, Morrison Foerster
Ms. Henrietta Thomas, Executive General Manager for Advocacy, Risk & Compliance, Xero
Ms. Sheetal Parikh, General Counsel & Chief Compliance Officer, Treasury Prime
Ms. Erica Khalili, Co-founder, Chief Legal & Risk Officer, Lead Bank
Mrs. Mitria Spotser, Vice President, Federal Policy, and President, Julian Bond Institute for Financial Equity Research, Center for Responsible Lending

Legislation

H.R. 6552, the Bank-Fintech Partnership Enhancement Act