Behnam – Federal Financial Analytics

2 12, 2022

AL120522

Max Camateros-Mann2022-12-06T11:23:10-05:00December 2nd, 2022|3- This Week|

The CFTC Showdown

As our in-depth client report described (see Client Report CRYPTO35), CFTC Chairman Rostin Behnam stoutly insisted that the Commission not only couldn’t have averted FTX’s collapse, but also that it did it all it could within the strict limitations of its authority. What he needed, he said, was more power and, to at least some extent, bipartisan senators on the Senate Agriculture Committee concurred. Those who had worked closely with FTX and the CFTC may have felt they had little choice but to join the CFTC in doubling-down in support of S.4760, the Digital Commodities Consumer Protection Act. This is a bill we previously noted would not stand unnoticed and uncriticized by the Biden Administration, Banking Committee, and progressives calling for stringent crypto standards.

AL120522.pdf…

1 12, 2022

CRYPTO35

Max Camateros-Mann2022-12-02T10:01:16-05:00December 1st, 2022|5- Client Report|

Senate Ag Crypto Bill Faces Uphill Climb Despite CFTC Efforts

In the first Congressional review of crypto since the collapse of FTX, Senate Agriculture leadership largely defended the bill they produced, S.4760. However, members outside of leadership were more skeptical of CFTC regulation and more broadly of the need for crypto in any part of the financial market. Senate Banking Chairman Brown (D-OH) reiterated that he is working with Secretary Yellen to create a crypto framework that protects the traditional financial system and consumers. Sen. Gillibrand (D-NY) seems to have moved away from her unequivocal support of cryptoassets, asking numerous questions on regulatory arbitrage and foreign domiciles, while Sen. Marshall (R-KS) joined Sen. Brown in suggesting that cryptoassets pose national-security risks. Ag Committee Chair Stabenow (D-MI) countered that the bill would have prevented FTX’s failure, a view Ranking Member Boozman (R-AR) largely supported even as he said additional work may be needed on matters such as inter-affiliate transaction restraints.

CRYPTO35.pdf…

18 07, 2022

DAILY071822

Eliza Allen2023-01-06T14:51:54-05:00July 18th, 2022|2- Daily Briefing|

HFSC Set for Consequential GSE-Reform Review

As noted last week, HFSC will on Wednesday convene a hearing with FHFA Director Thompson. Although Republicans sought this session, the majority-staff memo ahead of the hearing unsurprisingly reflects Democratic views on matters such as the GSEs’ equitable-finance plans.

Comment Period Extended on Consequential Credit-Card Proposal

The Federal Register today provides a ten-day comment period extension for the CFPB’s ANPR on Credit Card Late Fees and Late Payments (see FSM Report CREDITCARD35). The former deadline was July 22; it is now August 1.

G20 Ministerial Dissolves Over Sanctions, Climate Risk

Reinforcing fears of global fragmentation, the G20 finance ministerial over the weekend was unable to agree on a joint communique even though these are historically anodyne pronouncements that mask considerable disagreement.

CFTC Presses for Commodity-Originator Climate-Risk Comments

The CFTC today extended the comment deadline for its climate-risk RFI from August 8 to October 7. Chairman Rostin Behnam said the Commission did so to encourage feedback from farmers and other small entities critical to the Commission’s mission.

Daily071822.pdf…

9 02, 2022

Daily020922

Arezou Rafikian2023-04-05T11:42:19-04:00February 9th, 2022|2- Daily Briefing|

Global Regulators Demand Fast Capital Rewrite
Reinforcing his chairman’s comments yesterday, the Basel Committee and its supervising panel of central bankers today stressed the need for national action on the Basel III/IV package. The global bodies also reiterated the need for “full, timely, and consistent” action, with these calls sure to speed U.S. inter-agency deliberations as soon as the Federal Reserve’s board fills out with a new supervisory vice chair.

Senate Ag Ready to Engage on SEC/CFTC Crypto Jurisdiction
The Senate Agriculture Committee today held a hearing examining the CFTC’s authority to govern cash digital assets, with Members on both sides agreeing that it is vital to clarify the distinctions between securities and commodities law to ensure that the CFTC can intervene where appropriate to ensure stability and consumer protection. Chairwoman Stabenow (D-MI) acknowledged bitcoin’s financial-inclusion potential, but also noted an array of risks such as those to the climate, volatility, fraud, and insider trading.

IMF Discounts CBDC Inevitability
The IMF today released a comprehensive report on CBDC, the results of which led Managing Director Kristalina Georgieva to conclude that a central-bank digital currency is not an inevitable outcome of digital transformation.

Daily020922.pdf…