FSOC Reviews Ongoing NBFI Workstreams
In what appeared to be a meeting largely intended to comply with statutory demands for quarterly sessions, the FSOC met today to consider U.S. work on the 2021 global NBFI agenda (see Client Report NBFI).  A key concern then was MMF illiquidity, an issue now addressed in a pending SEC proposal (see FSM Report MMF19); Chairman Powell and Acting Comptroller Hsu thanked the Commission for this work.

Bipartisan Bill Opens Custody Services to Small Banks
Sens. Tim Scott (R-SC) and Maggie Hassan (D-NH) have introduced S. 3562 to allow well-capitalized community banks, minority depositories, and CDFIs to accept custodial deposits without these being considered brokered under applicable FDIC rules (see FSM Report DEPOSITINSURANCE111).

Toomey Targets Chinese CBDC to Speed U.S. Crypto
Suggesting that the autocratic nature of the digital yuan should spur private-sector U.S. crypto development, Senate Banking Ranking Member Toomey (R-PA) today requested that both the Treasury and State Departments closely monitor and report on developments as China seeks an international rollout in tandem with the Olympics.