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Economic growth

House Committee on Financial Services Reports 11 Bills to Support US Banking System

Strategic Insights

— 3 min read

The U.S. House of Representatives Committee on Financial Services has successfully reported 11 bills to the full House of Representatives, aiming to strengthen the U.S. banking system and reduce unnecessary regulatory burdens on American businesses. Chairperson French Hill emphasized that the legislation is essential for creating a financial system that fosters economic growth, innovation, and stability. The bills, sponsored by various representatives, cover a range of topics from financial exploitation prevention to community bank competition modernization.

Key Takeaways:

  • H.R. 1531, the PROTECT Taiwan Act, passed 49-0, requiring the Treasury Department, Federal Reserve, and Securities and Exchange Commission to seek China's exclusion from international financial organizations in the event of a CCP move on Taiwan.
  • H.R. 2478, the Financial Exploitation Prevention Act, passed 50-0, allowing registered open-end investment companies and transfer agents to implement safeguards against financial exploitation.
  • H.R. 3234, the Keeping Deposits Local Act, passed 51-0, enabling community banks to accept a greater amount of reciprocal deposits without stringent regulations.
  • H.R. 3484, the Business Owners Protection Act of 2025, sponsored by Rep. Andy Barr, passed 26-24, eliminating discretionary authorities granted to the SEC under the Dodd-Frank Act.
  • H.R. 3682, the Financial Stability Oversight Council Improvement Act of 2025, sponsored by Rep. Bill Foster, passed 47-4, restoring transparency and legitimacy to the FSOC with enhanced procedural guardrails.
  • H.R. 5262, the Bank Competition Modernization Act, sponsored by Rep. Scott Fitzgerald, passed 28-24, improving the Department of Justice's evaluation of proposed bank mergers with federal banking agencies.
  • H.R. 5270, the Stress Testing Accountability and Transparency Act, sponsored by Rep. Bill Huizenga, passed 28-24, requiring the FRB to issue regulations on stress test models and prohibiting climate-related stress tests for nonbank financial companies.
  • H.R. 5276, the Community Bank LIFT Act, sponsored by Rep. Young Kim, passed 33-19, lowering the Community Bank Leverage Ratio's statutory range and encouraging more community banks to opt-into the framework.
  • H.R. 5291, the Merchant Banking Modernization Act, sponsored by Rep. Roger Williams, passed 35-17, extending the permitted holding period for merchant banking investments from 10 to 15 years.
  • H.R. 5317, the Community Bank Deposit Access Act of 2025, sponsored by Chairman Hill, passed 48-2, creating a limited exception for certain custodial deposits at eligible institutions.
  • H.R. 5344, the Kleptocracy Asset Recovery Rewards Program Act, sponsored by Rep. Stephen Lynch, passed 50-0, reestablishing a Treasury Department rewards program to aid in the identification of stolen assets linked to foreign government corruption.

Statistics:

  • 11 bills reported to the full House of Representatives.
  • 49-0 vote on H.R. 1531, the PROTECT Taiwan Act.
  • 50-0 vote on H.R. 2478, the Financial Exploitation Prevention Act.
  • 51-0 vote on H.R. 3234, the Keeping Deposits Local Act.
  • 26-24 vote on H.R. 3484, the Business Owners Protection Act of 2025.
  • 47-4 vote on H.R. 3682, the Financial Stability Oversight Council Improvement Act of 2025.
  • 28-24 vote on H.R. 5262, the Bank Competition Modernization Act.
  • 28-24 vote on H.R. 5270, the Stress Testing Accountability and Transparency Act.
  • 33-19 vote on H.R. 5276, the Community Bank LIFT Act.
  • 35-17 vote on H.R. 5291, the Merchant Banking Modernization Act.
  • 48-2 vote on H.R. 5317, the Community Bank Deposit Access Act of 2025.
  • 50-0 vote on H.R. 5344, the Kleptocracy Asset Recovery Rewards Program Act.

Sources:

  • The U.S. House of Representatives Committee on Financial Services
  • Statement by Chairman French Hill
  • H.R. 1531, the PROTECT Taiwan Act
  • H.R. 2478, the Financial Exploitation Prevention Act
  • H.R. 3234, the Keeping Deposits Local Act
  • H.R. 3484, the Business Owners Protection Act of 2025
  • H.R. 3682, the Financial Stability Oversight Council Improvement Act of 2025
  • H.R. 5262, the Bank Competition Modernization Act
  • H.R. 5270, the Stress Testing Accountability and Transparency Act
  • H.R. 5276, the Community Bank LIFT Act
  • H.R. 5291, the Merchant Banking Modernization Act
  • H.R. 5317, the Community Bank Deposit Access Act of 2025
  • H.R. 5344, the Kleptocracy Asset Recovery Rewards Program Act

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