Crypto and digital assets; Flood risk; Financial stability; Fair lending
Agency leadership.The Senate confirms Jerome Powell to serve as Chairman of the FRB and Lisa Cook and Philip Jefferson to serve as FRB Governors; the Senate also confirms Alvaro Bedoya to serve as an FTC Commissioner.
Crypto and digital assets.SEC reiterates most crypto assets are securities that fall under the SEC’s regulatory authority; Treasury reiterates the need for a regulatory framework to guard against crypto market risks. FRB Financial Stability Report highlights vulnerability of stablecoins to runs and outlines considerations for a CBDC. The FASB adds a project to examine standards for accounting for digital assets, the focus of which will include 1) recognition, measurement, presentation, and disclosure of digital assets in financial statements, and 2) measuring certain digital assets at fair value. (See associated KPMG FRV Web Article here.)
Flood risk. The FRB, OCC, FDIC, NCUA, and Farm Credit Administrationrelease revised interagency Q&As regarding federal flood insurance law and implementing regulations; the agencies note that climate change is outside the scope of the Q&As.
Financial stability. The FRB issues the Financial Stability Report, highlighting the Russia-Ukraine war, persistent information and monetary tightening, and asset valuations/corrections as key risks.
Fair lending.The CFPB publishes it’s 2021 Fair Lending Report noting that the Bureau will be "sharpening its focus on digital redlining and algorithmic bias"; A new Advisory Opinion from CFPB clarifying ECOA protections apply to all aspects of a credit arrangement; CFPB is expanding its staff of attorneys and recruiting individuals with fair lending expertise.
Financial services regulatory and policy news
FRB, OCC, FDIC, NCUA, and Farm Credit Administration issued revised Q&As on flood insurance