FEDERAL GOVERNMENT RELATIONS
White House releases national AI policy framework
The White House released a national policy framework that calls on Congress to take several actions to support the safe deployment of artificial intelligence, including supporting law enforcement efforts to fight fraud and scams and passing federal legislation to preempt state regulation of the technology.
FDIC issuing GENIUS Act stablecoin prudential proposal ‘soon’
The Federal Deposit Insurance Corp. will soon issue proposed prudential requirements for FDIC-supervised payment stablecoin issuers, an agency official told Congress. Testifying before the House Subcommittee on Digital Assets, FDIC Director of Risk Management Supervision Ryan Billingsley said the proposal would include tailored requirements related to reserve assets, capital, liquidity and principles-based risk management requirements.
The proposal will add to a growing list of active and anticipated regulatory proposals to implement the GENIUS Act, including the FDIC’s December proposed rule to implement the law’s application provisions. That proposal would establish procedures for the agency to accept and process payment stablecoin issuer applications from FDIC-supervised banks.
The FDIC last month announced a 90-day extension of the comment deadline for the application proposal from Feb. 17 to May 18 following a requested extension from the Independent Community Bankers of America and other groups.
Fed: Select coin-distribution locations now fulfilling penny orders
The Federal Reserve announced this week that certain coin distribution locations are now fulfilling penny orders.
The Fed said:
- It will monitor the flow of penny orders and deposits and evaluate further changes to penny ordering locations as needed.
- Some coin distribution locations remain unable to fulfill penny orders due to localized inventory availability.
The Fed in January announced it would resume accepting penny deposits from banks to better support the circulation of pennies for commercial activity, given that penny production has ended.
FTC issues ‘debanking’ warnings to payment companies
The Federal Trade Commission sent letters to four payment service providers to warn them against engaging in alleged “debanking” activities.
Lawmakers introduce deposit insurance reform bills
Lawmakers in the House and Senate announced the introduction of four bills to revise the deposit insurance framework, with a focus on noninterest-bearing transaction accounts.
FSOC proposes new guidelines for determining nonbank risks to financial stability
The Financial Stability Oversight Council proposed new guidance to walk back recent changes for determining whether nonbanks should be subject to Federal Reserve supervision.
Report: State Department launches bureau to tackle cybersecurity, AI risks
The State Department has formally launched a new bureau to combat cyber threats and other technological risks posed by other countries, ABC News reported.
Tech industry giants sign voluntary agreement to fight scams, fraud
Google, Meta, Amazon and other tech industry giants recently signed a voluntary accord pledging to take “proactive actions” to fight fraud and scams on their platforms and increase cooperation with law enforcement to identify financial fraud.
Lawmakers introduce bill to curb credit repair scams
A bipartisan group of lawmakers has introduced legislation to crack down on deceptive practices used by fraudulent credit repair organizations. Among other things, the bill would prohibit “jamming,” a tactic in which financial institutions are flooded with duplicative disputes.