While Congress spent two weeks of April back home for the Easter and Passover holidays, it was still a busy month on Capitol Hill as Members of Congress worked to move along financial regulator nominations, dangerous pro-crypto legislation, and a deregulatory banking agenda.
House Committees Continue to Push Dangerous Pro-Crypto Legislation
On April 2nd, House Financial Services Committee held a vote on a their un-stablecoin legislation, the STABLE Act. Ranking Member Maxine Waters objected to the bill and brought up a number of concerns, including President Trump’s involvement in creating his own stablecoins. Committee Democrats proposed over 25 amendments to try and improve the bill, but they all failed to pass. Better Markets continues to track this legislation and highlighted three questions that any un-stablecoin legislation must answer. The STABLE Act falls short of addressing these problems.
Additionally, on April 9th, both the House Agriculture and Financial Services Committees held hearings to start laying the groundwork for their upcoming crypto market structure legislation. Better Markets has a long track record of highlighting the dangers of intertwining crypto more with our traditional financial system. You can find all of our crypto materials here.
Senate Banking Hears from Fed Vice Chair of Supervision Nominee
On April 10th, the Senate Banking Committee heard from six nominees across a number of Departments, including the Federal Reserve Vice Chair of Supervision nominee Michelle Bowman. During the hearings, Ranking Member Elizabeth Warren raised serious concerns over Bowman’s nomination to the critical role of Vice Chair of Supervision at the Fed, including on how President Trump’s tariff policies could threaten the financial system. Better Markets also raised a number of concerns about the nomination prior to the hearing. You can read the full fact sheet on why Michelle Bowman is the wrong person to lead supervision at the Fed here.
House Holds Hearing on Community Banking Regulations
On April 29th House Financial Services Committee held a hearing entitled “Regulatory Overreach: The Price Tag on American Prosperity.” This hearing focused on regulations facing community banks across the country. However, as Ranking Member Maxine Waters highlighted, many points in this hearing were instead focused on advancing a deregulatory agenda for megabanks instead of empowering and strengthening community banks. Better Markets recently released an important report focused on how Congress and regulators can strengthen these community banks, which are vital for Main Street Americans and small businesses, and often the lifeblood of their communities. Be sure to read our full report here.
House Holds Hearing on Proxy Advisor Firms
Also on April 29th, House Financial Services Capital Markets Subcommittee held a hearing entitled “Exposing the Proxy Advisory Cartel: How ISS & Glass Lewis Influence Markets.” During the hearing, proxy advisor firms were under attack for a number of issues, including how they recommended votes on executive compensation and climate-related financial risk. Prior to the hearing, Better Markets released a new fact sheet which highlighted the importance of these firms, and how they help shareholders exercise their oversight role of corporations that they own. Be sure to read our full fact sheet here.
