U.S. Financial Regulatory Week Ahead
Bowman Sworn in as Fed Vice Chair, House Financial Services Committee Readies Package of Banking Bills, and the Senate Banking Committee’s Controversial Reconciliation Provisions
June 9 - 13, 2025
The big news of the week is Michelle Bowman was confirmed Wednesday by the U.S. Senate as the new Federal Reserve Vice Chair for Supervision. Bowman, a former community banker, wasted no time, giving her first speech Friday outlining her priorities in a speech entitled “Taking a Fresh Look at Supervision and Regulation.” Bowman made clear in the speech that she is deeply focused on encouraging regulatory tailoring, undertaking a strategic reevaluation of bank capital requirements, reviewing a host of regulations and rules passed in the last administration by her predecessor, and streamlining the review process for bank mergers and de novo applications.
Meanwhile, there has been and will be this coming week a lot of action in Congress. This past Wednesday, the Senate Banking Committee offered up a number of provisions in a bid to help pay for H.R. 1, the One Big Beautiful Bill Act (OBBBA) – otherwise known as the Reconciliation bill. But what the committee provided – totally a little over $1 billion in possible budget savings – may not pass muster with the Senate Parliamentarian as it appears a number of the provisions do not meet the strict rules for what can be included in a Reconciliation bill.
What Senate Banking offer includes changing the Federal Reserve employees’ pay scale, zeroing out the entire budget of the Consumer Financial Protection Bureau (CFPB), dissolving the Public Company Accounting Oversight Board (PCAOB) and folding its functions into the SEC, and getting rid of the Treasury Department’s Office of Financial Research. We will likely know in the coming week what the Parliamentarian decides.
This coming week in the Senate, the Senate Agriculture Committee will finally hold a confirmation hearing for Brian Quintenz to serve as Chair of the Commodities Futures Trading Commission (CFTC). Quintenz was nominated months ago, but for a variety of reasons, his confirmation hearing was held up.
And Treasury Secretary Scott Bessent and Housing and Urban Development Secretary Scott Turner will testify before the Senate Appropriations Committee on Thursday on their respective departments’ 2026 budget requests.
Also this week, the House Financial Services Committee will hold a markup hearing for eight pieces of legislation, mainly focused on securities regulation. Committee Chair Representative French Hill (R–AR) has been wanting to move on his recently introduced crypto market structure bill, and we believe he will likely seek a mark-up on that bill the week after next.
Finally, we would note that this past Wednesday, Treasury Secretary Scott Bessent held a Financial Stability Oversight Council (FSOC) meeting (we cannot find any notice of the meeting being sent around beforehand). According to the read-out of the meeting,
“Council members heard updates from the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) on their efforts to enhance their supervisory and regulatory frameworks and to focus bank supervision on material financial risks. Members also discussed their continued collaboration to facilitate support for economic growth by banks and other financial institutions.
Additionally, the Council received a briefing by Treasury staff on the work of the President’s Working Group on Digital Asset Markets. The Chairman of the Securities and Exchange Commission (SEC) and the Acting Chairman of the Commodity Futures Trading Commission also provided updates on their agencies’ recent actions. The speakers discussed ongoing efforts to promote U.S. leadership in digital assets and financial technology and to provide greater regulatory clarity and certainty to digital asset markets.
The Council also received a presentation from FDIC, OCC, and Federal Housing Finance Agency staff on commercial real estate (CRE). The presentation noted stabilization across CRE sectors despite some continued headwinds in the office and multifamily segments. It also described actions taken by supervisors to mitigate CRE risks at their regulated institutions in recent years.
In addition, the Council heard an update by Treasury, SEC, and Office of Financial Research staff on market developments related to corporate credit, including the continued growth of private credit. The presentation noted that corporate fundamentals remain solid, although firms with lower credit ratings, higher leverage, and a greater share of floating-rate liabilities are more exposed to potential challenges. Council members discussed ways in which private credit can promote investment and access to capital, as well as potential vulnerabilities that warrant continued monitoring.”
Finally, we note that the Brookings Institution is holding a day-long conference on the history of bank supervision in the United States - “The History of Bank Supervision in America and the Road Ahead.” There are a number of excellent scholars and former regulators speaking and it should be quite interesting.
Below are the other regulatory events we are watching in the coming week:
U.S. Congressional Hearings
U.S. Senate
Tuesday, June 10, 3:00 p.m. – The Senate Agriculture Committee will hold a confirmation hearing for Brian Quintenz to be the next Chair of the Commodities Futures Trading Commission.
Wednesday, June 11, 3:30 p.m. – The Senate Appropriations Committee’s Subcommittee on Financial Services and General Government will hold a hearing on the Fiscal Year 2026 U.S. Treasury Department Budget Request. Treasury Secretary Scott Bessent will testify.
Wednesday, June 11, 3:30 p.m. – The Senate Appropriations Committee’s Subcommittee on Transportation, Housing and Urban Development will hold a hearing on the Fiscal Year 2026 U.S. Department of Housing and Urban Development Budget Request. HUD Secretary Scott Turner will testify.
Thursday, June 12, 10:00 a.m. – The Senate Banking Committee will hold a nomination hearing for Ben DeMarzo to be Assistant Secretary for the Department of Housing and Urban Development, Craig Trainor to be Assistant Secretary for the Department of Housing and Urban Development, Jovan Jovanovic to be Chairman of the Export-Import Bank, Francis Brooke to be the Assistant Secretary at the Department of the Treasury; and David Peters to be Assistant Secretary, at the Department of Commerce.
House of Representatives
Tuesday, June 10, 10:00 a.m. – The House Financial Services Committee will mark-up eight separate pieces of legislation. These include:
H.R. 225, the HUD Transparency Act of 2025
H.R. 2808, the Homebuyers Privacy Protection Act
H.R. 2835, the Small Bank Holding Company Relief Act
H.R. 3633, the Digital Asset Market Clarity (CLARITY) Act of 2025
H.R. 3645, the Amendment for Crowdfunding Capital Enhancement and Small-business Support (ACCESS) Act
H.R. 3672, the Securities Research Modification Act
H.R. 3709, the Advancing the Mentor-Protégé Program for Small Financial Institutions Act
H.R. 3716, the Systemic Risk Authority Transparency Act
Thursday, June 12, 10:00 a.m. – The House Financial Services Committee’s Subcommittee on National Security, Illicit Finance, & International Financial Institutions will hold a hearing entitled “Evaluating the Defense Production Act.”
Thursday, June 12, 2:00 p.m. – The House Financial Services Committee’s Housing and Insurance Subcommittee holds a hearing on "Housing in the Heartland: Addressing Our Rural Housing Needs."
Federal Department & Regulatory Agency Meetings & Events
Federal Reserve Board and Federal Reserve Banks
· There are no speeches or events scheduled at this time as it is within the two-week “Blackout Period” in advance of the Fed’s Open Market Committee meetings on June 17-18.
U.S. Treasury Department
· Wednesday, June 11, 3:30 p.m. – The Senate Appropriations Committee’s Subcommittee on Financial Services and General Government will hold a hearing on the Fiscal Year 2026 U.S. Treasury Department Budget Request. Treasury Secretary Scott Bessent will testify.
Department of Commerce
· There are no significant events scheduled at this time.
Department of Housing and Urban Development
· Wednesday, June 11, 3:30 p.m. – The Senate Appropriations Committee’s Subcommittee on Transportation, Housing and Urban Development will hold a hearing on the Fiscal Year 2026 U.S. Department of Housing and Urban Development Budget Request. HUD Secretary Scott Turner will testify.
Small Business Administration
· There are no significant events scheduled at this time.
Securities and Exchange Commission
· Monday, June 9, 1:00 p.m.—The SEC holds its Crypto Task Force Roundtable entitled “Spring Sprint Toward Crypto Clarity” at the SEC Headquarters. SEC Chair Paul Atkins and the other four SEC Commissioners will attend and speak.
· Wednesday, June 11, 11:00 a.m. – The SEC, in conjunction with the CFTC, the US Secret Service, and the FBI, will hold an event to highlight World Elder Abuse Awareness Day.
· Wednesday, June 11, 1:00 p.m. – The SEC will hold an Open Meeting to consider action relating to the compliance date for the amendments to Form PF that were adopted on February 8, 2024.
Commodities Futures Trading Commission
· Thursday, June 12, 11:20 a.m. – CFTC Acting Chair Caroline Pham will speak on a panel entitled “The Next Frontier: Crypto Derivatives and Onchain Trading” at the State of the Crypto Summit 2025 Conference in New York.
Federal Deposit Insurance Corporation
· There are no significant events scheduled at this time.
Office of the Comptroller of the Currency
· There are no significant events scheduled at this time.
The Consumer Financial Protection Bureau
· There are no significant events scheduled at this time.
FINRA
· There are no significant events scheduled at this time.
National Credit Union Administration
· There are no significant events scheduled at this time.
Federal Trade Commission & Department of Justice Antitrust Division
· There are no significant events scheduled at this time.
Farm Credit Administration
· Thursday, June 12, 10:00 a.m. – the Farm Credit Administration Board meets to receive the Quarterly Report on Economic Conditions and Farm Credit System Condition and Performance and the Semiannual Report on Office of Examination Operations.
Farm Credit Insurance Corporation
· There are no significant events scheduled at this time.
International Monetary Fund & World Bank
· Thursday, June 12, 6:00 p.m. – World Bank President Ajay Banga will speak at the Council on Foreign Relations in New York.
North American Securities Administrators Association
· There are no significant events scheduled at this time.
Trade Associations & Think Tank Events
Trade Associations
· Wednesday – Friday, June 10 -13 – The American Bankers Association holds its Risk and Compliance Conference in Indianapolis, Indiana.
· Thursday, June 12, 9:00 a.m. – SIFMA hosts the C&L Society Forum in New York.
Think Tanks and Other Events
· Tuesday, June 10, 9:00 a.m. – 3:00 p.m. – The Brookings Institution will hold a conference entitled “The History of Bank Supervision in America and the Road Ahead.” Former OCC Acting Comptroller Michael Hsu and former Treasury Deputy Secretary Sarah Bloom Raskin will be among the many speakers.
Recommended Reading
The Bonfire of the Banking Regulators? Willem Buiter/Project Syndicate
Buiter, the former chief economist at Citibank and a former member of the Monetary Policy Committee of the Bank of England, argues Despite numerous reforms, the US financial regulation system remains a patchwork of federal and state agencies with overlapping mandates and conflicting objectives. Two new books underscore the need to streamline bureaucracy, simplify regulations, and separate money creation from financial intermediation.
New Report Highlights Growing Burden of U.S. GSIB Surcharge on American Economy Financial Services Forum The Financial Services Forum today released a research paper analyzing the growing capital surcharges imposed on U.S. global systemically important banks (GSIBs) and the broader implications for the financial system and economy. The key findings of the report include:
Rising GSIB Surcharges: The analysis shows that capital surcharges for U.S. GSIBs have continued to increase, largely driven by growth in safe assets such as bank reserves and U.S. Treasuries.
Uneven Global Standards: Unlike their international counterparts, U.S. GSIB scores are not adjusted for overall financial system growth, resulting in disproportionately higher scores and surcharges for U.S. banks.
Economic Implications: Without reform, GSIB scores and surcharges are expected to continue rising, potentially constraining bank lending and posing broader economic challenges
Overcoming constraints: How banks helped US firms reroute their supply chains VoxEU/Centre for Economic Policy Research
Rising trade tensions and the pandemic have forced importers to reconfigure their supply chains – a complex and costly process. This column highlights the underappreciated role of financial intermediaries in supporting supply chain resilience during global disruptions. Commercial banks – especially those specializing in Asian trade finance – played a crucial role in helping firms manage this transition after the 2018–2019 tariffs. By meeting importers’ increased demand for credit and offering valuable information about potential suppliers, specialized banks helped tariff-hit firms diversify away from China faster and more successfully.
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