Top Senate Democrats Heighten Payment App Scrutiny

Continuing to shift their focus from Zelle to payment-service providers, Senate Banking Chairman Brown (D-OH) along with Sens. Reed (D-RI) and Warren (D-MA) today sent letters to Paypal and CashApp urging them to adopt new scam-reimbursement policies.

Treasury Defends Russian Sanctions, Economic-Warfare Clout

Facing increasing assertions that U.S.-led sanctions are not meaningfully affecting Russia, Treasury today issued a blog stoutly defending sanctions effectiveness.

Reed Presses OFR to Subpoena Shadow-Bank Data

The principal sponsor of the Dodd-Frank provisions creating the Office of Financial Research, Sen. Jack Reed (D-RI), today defended the agency on grounds that it lacks a confirmed director, promising to push the appointment on the floor as quickly as possible.

Basel Targets Stablecoin Reserve-Asset Risk

Moving forward with “targeted” changes to current standards, the Basel Committee today outlined revisions to its crypto standards with significant practical implications.

Liang Disputes Over-Arching Need for New AI Regs

Treasury Under Secretary Liang today argued that AI is not fundamentally different than other financial innovations and is already subject to existing consumer-protection, safety-and-soundness, illicit-finance, and financial-stability guardrails.

FRB-NY Official Highlights AI Promise, Problems, Policy Action

Summarizing a recent Federal Reserve Bank of New York AI conference, the Bank’s chief risk officer, Mihaela Nistor, concluded that AI can now identify GSIB and GSIFI risk due to its ability to detect tail behavior not now captured by relevant models.

Democrats Urge CFPB to Take Second Stand Against Forced Arbitration

Sens. Warren (D-MA) and Sanders (I-VT) were today joined by over 90 other Democratic lawmakers in sending a letter to CFPB Director Chopra urging the Bureau to issue a new rule to set strict standards for forced arbitration agreements in financial products and services.

Waters Tries to Protect Banking Agencies on Workplace Practice

Responding to her request at a recent hearing (see Client Report REFORM230), HFSC Ranking Member Waters (D-CA) today indicated that all of the banking agencies have sent her their current policies against sexual harassment.

FSOC Tackles AI, Reiterates Prior Climate/Cyber Priorities

As anticipated, FSOC today unanimously approved its annual report; FedFin will shortly provide clients with an in-depth analysis.  Key to its conclusions were the new focus on AI emphasized by Secretary Yellen and echoed by SEC Chair Gensler.