PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Thursday, April 10, 2025
April 10, 2025
Edited by Lawrence D. Kaplan, Jason Shafer and Kris Knabe
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Major Developments
Presidential Fact Sheet — Repeal of Regulations That Are Unlawful Under 10 Recent Supreme Court Decisions
The President of the United States directed agencies to expeditiously rescind regulations for “good cause” that are unlawful under 10 recent U.S. Supreme Court decisions including:
- Loper Bright Enterprises v. Raimondo, 603 U.S. 369 (2024) overturned the Chevron doctrine. Accordingly, agencies are to repeal any regulation that is not consonant with the “single, best meaning” of the statute authorizing it. Agencies are also to repeal any regulation that was promulgated in reliance on the Chevron doctrine and that could be defended only by relying on Chevron deference.
- West Virginia v. EPA, 597 U.S. 697 (2022) was a landmark ruling applying the Major Questions Doctrine, i.e., the principle that an agency cannot claim to discover vast delegations of power on an important issue in a statutory text that doesn’t clearly provide such authority. (Agencies cannot “seek to hide ‘elephants in mouseholes.’”) Accordingly, agencies must repeal any regulation promulgated in violation of the Major Questions Doctrine.
- SEC v. Jarkesy, 603 U.S. 109 (2024) held that it violates the Seventh Amendment for agencies to adjudicate common-law claims in their in-house courts. Agencies accordingly must repeal any regulation authorizing enforcement proceedings that enable the agency’s courts to impose judgments or penalties that can only be obtained via jury trial in Article III Courts.
- Michigan v. EPA, 576 U.S. 743 (2015) held that it violates the Administrative Procedure Act for an agency to promulgate regulations without properly considering the cost as well as the benefits. Agencies accordingly must repeal any regulation where the costs imposed are not justified by the public benefits, or where such an analysis was never conducted to begin with.
- Sackett v. EPA, 598 U.S. 651 (2023) ended a 20-year attempt by the EPA to enforce the Clean Water Act against landowners whose property was near a ditch that fed into a creek, which fed into a navigable, intrastate lake. Agencies accordingly must repeal any regulation inconsistent with a properly bounded interpretation of “waters of the United States.”
- Ohio v. EPA, 603 U.S. 279 (2024) struck down an EPA plan under the Clean Air Act that the EPA had adopted after the scientific and policy premises undergirding it had been shown to be wrong. Agencies accordingly must repeal any regulation that does not sufficiently account for the costs it imposes, or for which foundational assumptions have changed and are no longer defensible.
- Cedar Point Nursery v. Hassid, 594 U.S. 139 (2021) held that a law that forced landowners to admit union organizers onto their property violated the Takings Clause. Agencies accordingly must repeal any regulation inconsistent with a proper understanding of the Takings Clause, which protects far more than just real estate from being taken by the government without compensation.
- Students for Fair Admissions, Inc. v. President and Fellows of Harvard College, 600 U.S. 181 (2023) held that “affirmative action” admission programs violate the Equal Protection Clause of the Fourteenth Amendment. Agencies accordingly must repeal any regulation that imposes racially discriminatory rules or preferences. As the court said, “[e]liminating racial discrimination means eliminating all of it.”
- Carson v. Makin, 596 U.S. 767 (2022) held that a law excluding religious schools from participating in Maine’s school-voucher program violated the Free Exercise Clause. Agencies accordingly must review their regulations to ensure equal treatment of religious institutions vis-à-vis secular institutions for purposes of funding and access to public benefits.
- Roman Cath. Diocese of Brooklyn v. Cuomo, 592 U.S. 14 (2020) struck down New York’s Covid-era occupancy restrictions on churches and synagogues because they were uniquely harsher than those that applied to “essential” businesses — such as acupuncture facilities. Each agency should review its regulations to ensure at least equal treatment of religious institutions vis-à-vis secular institutions for regulatory purpose.
Congress
U.S. House of Representatives
Committee on Financial Services
Hearing: American Innovation and the Future of Digital Assets Aligning the U.S. Securities Laws for the Digital Age
April 9, 2025
The U.S. House Committee on Financial Services Subcommittee on Digital Assets, Financial Technology and Artificial Intelligence held a hearing entitled “American Innovation and the Future of Digital Assets Aligning the U.S. Securities Laws for the Digital Age.”
- Hearing
- Press Release
- Committee Memorandum
- Subcommittee Chair Steil Statement
- Ranking Member Waters Statement
Federal Agencies
U.S. Department of the Treasury
Secretary Bessent Remarks Before the American Bankers Association
April 9, 2025
U.S. Secretary of the Treasury Scott Bessent gave remarks before the American Bankers Association.
Federal Reserve Board
Minutes of the Federal Open Market Committee, March 18–19, 2025
April 9, 2025
The Federal Reserve released the minutes of the Federal Open Market Committee meeting that was held on March 18–19, 2025.
Working Paper: Household Debt, the Labor Share and Earnings Inequality
April 9, 2025
The Federal Reserve Board published a working paper entitled “Household Debt, the Labor Share, and Earnings Inequality.”
Working Paper: Monetary Policy Strategy and the Anchoring of Long-Run Inflation Expectations
April 9, 2025
The Federal Reserve Board published a working paper entitled “Monetary Policy Strategy and the Anchoring of Long-Run Inflation Expectations.”
Federal Reserve Bank of Boston
Research and Analysis Note: Are Retail Prime Money Market Fund Investors Increasingly More Sensitive to Stress Events?
April 9, 2025
The Federal Reserve Bank of Boston published a supervisory research and analysis note entitled “Are retail prime money market fund investors increasingly more sensitive to stress events?”
Conference of State Bank Supervisors
CSBS Supports Rescinding FDIC Bank Merger Policy and Recommends Areas for Reform
April 9, 2025
The Conference of State Bank Supervisors sent a letter to the Federal Deposit Insurance Corporation (FDIC) voicing support for rescinding the FDIC’s current bank merger policy statement and suggested reforms that would modernize and improve the M&A framework.
Commodity Futures Trading Commission
Acting Chairman Pham Issues Statement on DOJ Policy Ending Regulation by Prosecution of Digital Assets Industry and Directs CFTC Staff to Comply with Executive Orders
April 8, 2025
Commodity Futures Trading Commission Acting Chairman Caroline D. Pham issued a statement regarding a recently announced Justice Department policy ending the practice of regulation by prosecution that has targeted the digital asset industry in recent years, and directed CFTC staff to comply with the president’s executive orders and administration policy, consistent with DOJ’s digital assets enforcement priorities and charging considerations.
Federal Financial Institutions Examination Council
FinCEN Issues Analysis of Fentanyl-Related Threat Patterns and Trends in Bank Secrecy Act Reports
April 9, 2025
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a Financial Trend Analysis focused on patterns and trends identified in Bank Secrecy Act (BSA) data linked to fentanyl-related illicit finance.
FINRA
FINRA Foundation Releases State-by-State Financial Knowledge Findings
April 9, 2025
The FINRA Investor Education Foundation (FINRA Foundation) released preliminary findings from the National Financial Capability Study, which will be published in July.
International
European Commission
Commission Proposal to Impose Trade Countermeasures Against US Obtains Necessary Support from EU Member States
April 8, 2025
EU Member States have voted in favor of the European Commission's proposal to introduce trade countermeasures against the United States.
Bank of England
Financial Stability in Focus: Artificial intelligence in the financial system
April 9, 2025
The Bank of England published “Financial Stability in Focus: Artificial intelligence in the financial system” which sets out the Financial Policy Committee’s view on specific topics related to financial stability.
Systemic Risk Survey Results — 2025 H1
April 9, 2025
The Bank of England published the Systemic Risk Survey results for H1 2025.
Financial Policy Committee Record – April 2025
April 9, 2025
The Bank of England released the record of the Financial Policy Committee meetings held April 4 and 8, 2025.
Response to the Discussion Paper on Reviewing Access to RTGS Accounts for Settlement
April 8, 2025
The Bank of England released a response to the discussion paper on reviewing access to Real-Time Gross Settlement (RTGS) for settlement published in February 2024.
Bank of England Prudential Regulation Authority
Significant Risk Transfer Financing: Prudential Expectations
April 9, 2025
The Prudential Regulation Authority sent a letter to chief financial officers to highlight practices it has observed in relation to illiquid and structured financing portfolios across regulated firms.
Administration Changes
Vacancies
Appointments/Confirmation Hearings
U.S. Department of the Treasury – Scott Bessent (effective January 27, 2025)
Federal Reserve Board – Jerome H. Powell (effective May 23, 2022)
- Vice Chair Phillip N Jefferson (sworn in September 13, 2023)
- Vice Chair for Supervision Michelle Bowman (nominated March 17, 2025)
- Governor Michael Barr (sworn in July 19, 2022)
- Governor Michelle W. Bowman (sworn in November 26, 2018)
- Governor Christopher J. Waller (sworn in December 18, 2020)
- Governor Lisa D. Cook (sworn in September 13, 2022)
- Governor Adriana D. Kugler (sworn in September 13, 2023)
Federal Reserve Bank of New York – John C. Williams (effective June 18, 2018)
Federal Reserve Bank of Boston – Susan M. Collins (effective July 1, 2022)
Federal Deposit Insurance Corporation – Travis Hill (Acting Chairman effective January 20, 2025)
- Vice Chairman Vacant
- Director Vacant
- Director Rodney Hood (Acting Comptroller of the Currency)
- Director Russel Vought (Director of Consumer Financial Protection Bureau)
Office of the Comptroller of the Currency – Jonathan Gould (nominated February 11, 2025); Rodney E. Hood (Acting Comptroller effective February 10, 2025)
Securities and Exchange Commission – Paul Atkins (nominated December 2024); Mark T. Uyeda (Acting Chairman effective January 20, 2025)
Commodity Futures Trading Commission – Brian Quintenz (nominated February 11, 2025); Caroline D. Pham (Acting Chairman effective January 20, 2025)
Consumer Financial Protection Bureau – Jonathan McKernan (nominated February 11, 2025); Russel Vought (Acting Director effective February 10, 2025)
National Credit Union Administration – Kyle Hauptman (Chairman effective January 20, 2025)
Small Business Administration – Kelly Loeffler (effective February 19, 2025)
U.S. Department of Housing and Urban Development – Scott Turner (effective February 5, 2025)
Federal Housing Finance Agency – William Pulte (effective March 13, 2025)
U.S. Department of Education – Linda McMahon (effective March 3, 2025)
Financial Crimes Enforcement Network – Andrea Gacki (effective July 13, 2023)
PH Client Alerts
Click here to read more from our Coronavirus series.
Legislation/Legislative Updates
Click here to view the full text of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), Enacted March 27, 2020.
Click here to view the full text of the Paycheck Protection Program Increase Act of 2020, Enacted April 24, 2020.
Click here to view the full text of the Paycheck Protection Program Flexibility Act of 2020, Enacted June 5, 2020.
Click here to view the full text of the Consolidated Appropriations Act, 2021, Enacted December 27, 2020.
Click here to view the full text of the American Rescue Plan of 2021, Enacted March 11, 2021.
Click here to view the full text of the PPP Extension Act of 2021, Enacted March 30, 2021.
Click here to view a running list of proposed legislation from the Senate Committee on Banking, Housing, and Urban Affairs, Senate Committee on Small Business and Entrepreneurship, House Committee on Financial Services and House Committee on Small Business
Contributors
