Democrats with america Home Monetary Providers Committee have launched a number of payments in what they described because the “first wave” of laws geared toward addressing failures at main banks.
In a June 21 announcement, committee rating member Maxine Waters stated Home Democrats had backed 11 payments drafted in response to the collapse of Silicon Valley Financial institution, Signature Financial institution and First Republic Financial institution in america. The proposed laws — which has not but gone to the committee’s Republican members for approval — consists of measures to impose fines and ban financial institution executives from future work within the business ought to they “negligently contribute to their financial institution’s failure.”
“The failures of Silicon Valley Financial institution, Signature Financial institution, and First Republic Financial institution clarify that it’s previous time for laws geared toward strengthening the protection and soundness of our banking system and enhancing financial institution government accountability,” stated Consultant Waters. “Congress should not sit idly by.”
RM @RepMaxineWaters broadcasts the introduction of a primary wave of Cmte Democratic payments to answer the current failures of #SVB, #SignatureBank, & #FirstRepublicBank, which had been the 2nd, third, & 4th largest financial institution failures in U.S. historical past. | https://t.co/NOSRBnc4Jc pic.twitter.com/Dhsn5ZiCMr
— U.S. Home Committee on Monetary Providers (@FSCDems) June 21, 2023
The Home Committee, chaired by Republican Patrick McHenry, typically discusses issues regarding digital property, together with the oversight of federal regulatory companies just like the Securities and Change Fee. Although some lawmakers have pointed to digital property as contributing to the failures of Signature and Silicon Valley Financial institution, Consultant Waters didn’t particularly point out crypto or blockchain within the proposed laws. The lawmaker additionally didn’t invoke the crypto-friendly Silvergate Financial institution — which in March introduced its voluntary liquidation — in introducing the payments.
Different measures included within the proposed payments may give regulators the authority to ban financial institution executives from promoting inventory below sure circumstances — as was the case with Silicon Valley Financial institution — and have regulators develop banks’ stress testing necessities. One invoice urged limiting bonus funds to financial institution executives.
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Consultant Waters stated committee Republicans “expressed openness” to a few of the laws at markup, however it’s unclear which payments have any hope of getting via with bipartisan assist. Cointelegraph reached out to the California consultant however didn’t obtain a response on the time of publication.
Waters beforehand referred to as for coordination and cooperation between authorities companies and lawmakers to deal with crypto regulation. She informed Cointelegraph in February she was “nonetheless optimistic” {that a} stablecoin invoice may cross the committee. Lawmakers reviewed a dialogue draft of the invoice as a part of a June 13 listening to on digital property.
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