All articles tagged with #senate banking committee
The Clarity Act cleared the Senate Banking Committee on a largely party-line vote, signaling momentum for crypto regulation despite opposition from banks, unions and law enforcement; supporters say it would provide clear rules and investor protection, while critics warn it could affect bank deposits and enforcement of illicit activity, with the bill needing House passage and White House approval to become law.
Democrats on the Senate Banking Committee say Kevin Warsh hasn’t built the bipartisan Capitol Hill support that helped Jerome Powell survive Trump, signaling a likely highly partisan confirmation and greater congressional oversight of the Fed.
Labor unions including AFL-CIO and SEIU press Congress to oppose a rules-based crypto bill, warning it could jeopardize workers' retirement plans. As the Senate Banking Committee plans to amend and vote on the measure, concerns over safety and ethics persist, with Democrats and Republicans negotiating while the banking industry opposes a stablecoin provision—leaving the bill's fate uncertain.
Senators Thom Tillis and Angela Alsobrooks finalized a compromise on the Clarity Act’s stablecoin yield provisions (Section 404), barring ‘covered parties’ from paying interest or yield on stablecoins while permitting activity-based rewards. Regulators must issue rules within a year, with civil penalties up to $5 million per violation and a two-year congressional report on stablecoin adoption, yields, and deposit impacts. The agreement ends months-long stalemate and paves a path for a Senate Banking Committee markup, with Coinbase CEO Brian Armstrong urging lawmakers to “mark it up” even as a markup date has not yet been set.
The Senate Banking Committee voted 13-11 to advance Kevin Warsh’s nomination to chair the Federal Reserve, putting him closer to succeeding Jerome Powell. Democrats largely opposed, while GOP Sen. Thom Tillis lifted his blockade after the DOJ deferred to the Fed inspector general on the Fed HQ renovations probe, a move supporters say preserves central bank independence. The Fed is expected to hold rates steady at its meeting later today, with Powell likely giving what could be his final press conference as chair.
Warsh argues the Fed must stay largely independent of politics and remain focused on its monetary policy goals, warning against overreach into fiscal, climate, or social policies; he notes some areas lack independence (like stewardship of public monies) and says operational independence on rates should be preserved. His nomination faces potential hurdles due to an ongoing U.S. attorney’s investigation into the Fed’s HQ renovation, though the White House expects swift confirmation.
Republican lawmakers on the Senate Banking Committee appear ready to clear Kevin Warsh for Fed chair by downplaying Powell’s criminal probe or pressing for its resolution, even as Sen. Thom Tillis withholds his vote. Tillis’s hold blocks Warsh’s committee path, but Tim Scott and other GOP members signal support if the investigation is resolved, meaning a closed probe could unlock easy floor confirmation.
Bank of America CEO Brian Moynihan warned that a Treasury Department study suggests up to $6 trillion of U.S. bank deposits could migrate into stablecoins if interest-bearing stablecoins aren’t restricted, potentially shrinking banks’ deposit bases and raising wholesale funding costs. The report comes as lawmakers rush to finalize a crypto bill that would ban interest on stablecoins unless tied to activities like staking or liquidity provision, amid lobbying from banks and crypto firms and concerns about financial surveillance.
Senate Agriculture Chair John Boozman is considering delaying a key vote on cryptocurrency legislation to allow more bipartisan negotiations with Senator Booker, aiming to consolidate support before the January 15 markup, amidst ongoing bipartisan talks.
A senior Republican senator, John Kennedy, is withholding support for Trump's FDIC nominee Travis Hill until he addresses workplace misconduct issues at the agency, amid concerns over harassment and discrimination revealed in an external investigation. The opposition could threaten Hill's confirmation, with Kennedy demanding a report within 30 days on how the FDIC is tackling these issues.
Ten Democratic senators, led by Elizabeth Warren, are urging the Senate Banking Committee to hold hearings with JPMorgan Chase and other banks to investigate their roles in Jeffrey Epstein's sex trafficking, following reports of suspicious transactions and the bank's long-term relationship with Epstein. The senators seek transparency and accountability regarding the banks' oversight and handling of Epstein's accounts.
The Senate Banking Committee advanced President Trump's nomination of Stephen Miran, a White House economic advisor, to become a Federal Reserve governor, with a party-line vote of 13-11, setting the stage for a full Senate vote amid ongoing political and legal tensions surrounding Fed appointments and Trump’s influence on the Fed.
Senator Elizabeth Warren is set to become the top Democrat on the Senate Banking Committee, positioning her to challenge Republican priorities in Washington. Known for her progressive stance and criticism of Wall Street, Warren's influence will be tested as she navigates internal party dynamics and potential bipartisan collaborations. Her focus includes affordable housing and executive accountability, while her stance on cryptocurrency regulation remains critical. Despite not controlling the committee, Warren's ability to leverage her platform could significantly impact economic policy discussions.
Jamie Dimon, chairman and CEO of JPMorgan Chase & Co., has issued another economic warning during a Senate Banking Committee hearing, expressing caution about the potential impact of inflation, interest rates, and geopolitical tensions on the economy.
Federal Reserve Chair Jerome Powell is testifying before the Senate Banking Committee for the second day, reiterating his expectation of interest rate cuts later this year but not specifying when. He emphasized that policy moves will depend on incoming data and faced questions on monetary policy calibration and proposed bank capital rules. This is Powell's last scheduled public appearance before the next Fed meeting on March 19-20.