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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Saturday, January 28, 2023

January 28, 2023

FedACTion Task Force

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PH Fintech Tracker on Executive Order for Digital Assets

Major Developments

Federal Reserve Board issues policy statement on Section 9(13) of the Federal Reserve Act, including effectively precluding uninsured and insured banks subject to Federal Reserve Board oversight and supervision from holding crypto-assets as principal

January 27, 2023

The Federal Reserve Board issued a policy statement interpreting Section 9(13) of the Federal Reserve Act and established a rebuttable presumption that it will exercise its discretion to limit state member banks (insured and uninsured) to engaging as principal in only those activities that are permissible for national banks, in each case subject to the terms, conditions and limitations placed on national banks with respect to the activity. In the policy statement, the Federal Reserve Board noted that it had not identified any authority permitting national banks to hold most crypto-assets as principal in any amount and, therefore, concluded it would presumptively prohibit state member banks from engaging in crypto-asset-related activities under Section 9(13) of the Federal Reserve Act.

The policy statement did note that state member banks seeking to issue dollar tokens (i.e., stablecoins) would be required to adhere to all the conditions the OCC has placed on national banks with respect to such activity, including under OCC Interpretive Letters Nos. 1174 and 1179, subject to receipt of a supervisory nonobjection before commencing such activity.

Congress

Federal Agencies

Financial Crimes Enforcement Network

Prepared Remarks of FinCEN Acting Deputy Director During the ID Policy Forum

January 27, 2023

Jimmy Kirby, Acting Deputy Director of the Financial Crimes Enforcement Network, delivered remarks during the Identity Policy Forum.

International

Bank of England

Minutes of the Securities Lending Committee meeting – November 2022

January 27, 2023

The Bank of England released the minutes of the Securities Lending Committee meeting for November 2022.

Statistics: Capital Issuance - December 2022

January 27, 2023

The Bank of England released the capital issuance statistics for December 2022.

Administration Changes

Vacancies

Office of the Comptroller of the Currency

  • Comptroller – Vacant (Michael Hsu serves as Acting Comptroller)

Financial Crimes Enforcement Network

  • Director – Vacant (Himamauli Das serves as Acting Director)

Appointments/Confirmation Hearings

U.S. Department of the Treasury – Janet Yellen (effective January 26, 2021)

Federal Reserve Board – Jerome H. Powell (effective May 23, 2022)

  • Vice Chair for Supervision Michael Barr (sworn in July 19, 2022)
  • Vice Chair Lael Brainard (sworn in May 23, 2022)
  • Governor Phillip N Jefferson (sworn in May 23, 2022)
  • Governor Lisa D. Cook (sworn in May 23, 2022)

Federal Reserve Bank of New York – John C. Williams (effective June 18, 2018)

Federal Reserve Bank of Boston – Susan M. Collins (effective July 1, 2022)

Federal Deposit Insurance Corporation – Martin Gruenberg (effective January 5, 2023)

Office of the Comptroller of the Currency – Michael Hsu (acting Comptroller, effective May 10, 2021)

Securities and Exchange Commission – Gary Gensler (effective April 17, 2021)

Commodity Futures Trade Commission – Rostin Behnam (effective December 17, 2021)

Consumer Financial Protection Bureau – Rohit Chopra (effective October 12, 2021)

National Credit Union Administration – Todd M. Harper (effective January 20, 2021)

Small Business Administration – Isabella Casillas Guzman (effective March 16, 2021)

U.S. Department of Housing and Urban Development – Marcia Fudge (effective March 10, 2021)

Federal Housing Finance Agency – Sandra L. Thompson (effective June 22, 2022)

U.S. Department of Education – Dr. Miguel Cardona (effective March 2, 2021)

PH Client Alerts

Click here to read more from our Coronavirus series.

Legislation/Legislative Updates

Click here to view the full text of the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act"), Enacted March 27, 2020.

Click here to view the full text of the Paycheck Protection Program Increase Act of 2020, Enacted April 24, 2020.

Click here to view the full text of the Paycheck Protection Program Flexibility Act of 2020, Enacted June 5, 2020.

Click here to view the full text of the Consolidated Appropriations Act, 2021, Enacted December 27, 2020.

Click here to view the full text of the American Rescue Plan of 2021, Enacted March 11, 2021.

Click here to view the full text of the PPP Extension Act of 2021, Enacted March 30, 2021.

Click here to view a running list of proposed legislation from the Senate Committee on Banking, Housing, and Urban Affairs, Senate Committee on Small Business and Entrepreneurship, House Committee on Financial Services, and House Committee on Small Business.