IMF: Most CBDC Isn’t Legal Tender
Addressing a critical question confronting CBDC, the IMF last week posted a staff note challenging the legal authority enjoyed by most central banks to issue digital currency.

Yellen’s Top FinServ Priorities: Systemic Designations, AML, Climate Risk
Although the Senate Finance Committee hearing today considering Janet Yellen’s nomination to be Treasury Secretary largely focused on national-debt, stimulus, and tax matters, many questions, as expected, also provide insight into the sharp financial-policy-priority changes under the Biden Administration.

FHFA Takes Lead in Sizing Financial Climate Risk
Following the Fed’s climate-change warning for residential real estate, FHFA today issued a request for input seeking views on climate and disaster risk as they affect Fannie Mae, Freddie Mac, and the Federal Home Loan Banks.

Large BHCs Get Capital-Plan Relief, SLHCs Get New Rules
The FRB today finalized proposed capital-planning standards (see FSM Report CAPITAL226) aligning these requirements with 2019’s broader tailoring construct (see FSM Report SIFI34) and the stress capital buffer (see FSM Report CAPITAL225).

FDIC Restarts Large-IDI Resolution Plans
Following a contentious meeting approving 3-1 a new FDIC supervisory-appeals process, the FDIC board met in closed session and then issued a statement ending the moratorium on resolution-plan filings by IDIs with assets over $100 billion.