March 3, 2023

The Data Privacy Act of 2023, introduced by House Financial Services Committee (HFSC) Chairman Patrick McHenry (R-NC), passed (26 – 21) during the Committee’s first markup of the 118th Congress. During the markup, Ranking Member Maxine Waters (D-CA) shared Committee Democrats’ amendments to Rep. McHenry’s legislation. Rep. Waters offered an amendment to strike the preemption section of the bill. 

HFSC Chairman Patrick McHenry and U.S. Senator Cynthia Lummis (R-WY) sent a letter to the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the National Credit Union Administration (NCUA) following up on a letter seeking clarification regarding the Securities and Exchange Commission’s Staff Accounting Bulletin 121 (SAB 121), issued in 2022, which changed the way banks and financial institutions are expected to account for the custody of digital assets. 

The FDIC released its latest Quarterly Banking Profile. The profile reported that reports from 4,706 commercial banks and savings institutions insured by the FDIC reflect aggregate net income of $68.4 billion in fourth quarter 2022, a decrease of $3.3 billion (4.6 percent) from the third quarter.

The Federal Reserve published the Large Institution Supervision Coordinating Committee (LISCC) Program Manual, describing the structure, governance, supervisory process, and communication methods used when supervising large, systemically important firms.

The Financial Crimes Enforcement Network (FinCEN) issued an alert to financial institutions on the nationwide surge in check fraud schemes targeting the U.S. Mail.

Treasury Under Secretary for Domestic Finance Nellie Liang delivered remarks at the Atlantic Council on the next steps in the future of money and payments. She discussed the potential role of wholesale and retail CBDC, ongoing work within the Biden Administration, policy priorities such as global financial leadership, national security, and privacy/illicit finance/financial inclusion. Internationally, the United States also plans to engage in discussions related to standard-setting and technical expertise.  

NCUA Chairman Todd A. Harper delivered remarks at the 2023 Governmental Affairs Conference. Chairman Harper discussed the state of the credit union system, including interest rate risk, liquidity risk and central liquidity facility, cybersecurity risk, vendor authority, financial technology, consumer financial protection, minority depository institutions, and the Community Development Revolving Loan Fund increase.

U.S. Senators Elizabeth Warren (D-MA), Robert Menendez (D-NJ), and Jack Reed (D-RI) sent a letter to the banking agencies regarding supervision for compliance with Regulation E and AML rules of depository institutions that participate in the Zelle network.

The CFPB released a new issue spotlight examining how the financial products used to deliver public benefits, like Social Security and unemployment compensation, affect individuals’ ability to fully access the assistance provided through those programs.

The Senate Committee on Banking, Housing, and Urban Affairs held a hybrid hearing on national security and foreign policy considerations regarding the implementation and use of economic policy tools. Read our summary here.

The House Committee on Financial Services met for a full committee markup. Read our summary here

The House Energy and Commerce Committee held an Innovation, Data, and Commerce Subcommittee hearing entitled “Promoting U.S. Innovation and Individual Liberty through a National Standard for Data Privacy.” At the hearing, Chair Cathy McMorris Rodgers (R-WA) expressed support for comprehensive privacy legislation building upon the American Data Privacy and Protection Act (ADPPA), which moved through the Committee last Congress with a vote of 53-2. 

The federal prudential bank regulatory agencies issued a joint statement highlighting liquidity risks to banking organizations associated with certain sources of funding from crypto-asset-related entities and effective practices to manage those risks. In response to the joint statement, Senate Banking Committee Chairman Sherrod Brown (D-OH) stated, “This is the right step to provide more clarity to banking organizations and protect people’s hard-earned money as we continue to consider a comprehensive regulatory framework for digital assets.”