Barr Puts AI On Fair-Lending Watch
Reflecting the Administration’s new focus on AI and SEC Chairman Gensler’s concerns, Vice Chair Barr today made it clear that the FRB is also mindful of emerging AI risks. As a result, Fed supervisors will evaluate firms on whether they have appropriate risk management and controls for AI-related factors, with Mr. Barr emphasizing that AI-lending models should be transparent and explainable to prevent digital or reverse redlining.
IMF Opposes Crypto Sovereign Currency, Emphasizes AML/Systemic Risk
The IMF today published cryptoasset recommendations previously submitted to the GHOS. Organized around “three pillars” of sound macro-policy, transparency, and effective implementation, the IMF recommends ensuring that monetary-policy frameworks protect sovereign currencies, ensuring also that cryptoassets are not granted official currency-or legal-tender status – a blow to nations such as El Salvador that have done so.
HFSC GOP Advances Beneficial Ownership Legislative Rewrite
Today’s HFSC National Security Subcommittee hearing on FinCEN’s beneficial ownership rulemaking revisited recent bipartisan concerns. These included implementation, transparency, outreach, compliance costs, agency funding, and law enforcement and financial institution BOI registry access. Subcommittee Chairman Luetkemeyer (R-MO) raised concerns over FinCEN’s small business outreach and education as well as the January 1 BOI effective date, criticizing the rulemaking for what he said was undue complexity.