Treasury Opens Digital-Asset Framework to Public Comment

Following yesterday’s international crypto framework, Treasury today advanced its work pursuant to the President’s executive order with a request for comment on how best to ensure digital-asset responsible development.  We will shortly provide clients with an in-depth analysis of the consultation, which seems more designed to check the public-comment box than to seek views on specific policy options.

Fed’s Brainard Affirms CBDC Views, Details Crypto Regulatory Priorities

In remarks today, Fed Vice Chair Brainard reiterated her tentative support for CBDC outlined at a recent Congressional hearing (see Client Report CBDC13).  She did so on grounds that even well-regulated private stablecoins might either fragment the payment system or unduly concentrate power.  She also detailed concerns about bank interconnections with crypto assets, stating that regulatory standards for the crypto financial system are needed before digital assets pose systemic risk.

GOP demands FHFA Action to Stem New GSE Ventures

Housing Subcommittee Ranking Member French Hill (R-AR) and nine other HFSC Republicans today sent a letter to FHFA Director Thompson demanding tougher treatment and transparency for new GSE ventures.  As we noted, Fannie and Freddie’s equitable-housing plans include an array of pilots for new mortgage products and ancillary services.