On December 2, the House Financial Services Committee conducted an oversight hearing with testimony from leaders from the FDIC, OCC, Fed and NCUA. Lawmakers and regulators discussed recent efforts to tailor regulatory requirements, modernize supervision, address capital standards, and advance digital asset and stablecoin regulations.

Regulatory Tailoring and Thresholds

Committee members and agency leaders, including FDIC Acting Chair Travis Hill and Fed Vice Chair for Supervision Michelle Bowman, emphasized the need to update and index regulatory thresholds — such as those for enhanced prudential standards and community bank requirements — to reflect economic growth and prevent regulatory “bracket creep.” All regulators expressed support for further tailoring rules to actual risk and for reducing unnecessary burdens on community banks and credit unions.

Supervisory and Capital Reforms

The FDIC and OCC described ongoing efforts to streamline supervision, including a shift toward focusing on material financial risks (covered by InfoBytes here), new BSA/AML exam procedures, and the discontinuation of collecting certain data. Regulators also discussed recent and pending capital rulemakings, including implementation of the Basel III Endgame and changes to leverage ratios, with an emphasis on balancing safety and soundness with economic growth.

Digital Assets and Stablecoins

Acting Chair Hill outlined steps to implement the FDIC’s new responsibilities under the GENIUS Act (covered by InfoBytes here) since the FDIC expects to issue both its application framework later this month and a proposed rule on prudential requirements for FDIC-supervised payment stablecoin issuers early next year. Similarly, OCC Comptroller Gould stated that the agency is drafting rules to implement the GENIUS Act provisions for which it is responsible. Vice Chair for Supervision Bowman discussed the need for clarity in digital asset regulation and coordination with other agencies on capital, liquidity and diversification requirements for stablecoin issuers.