GENIUS Act and banking supervision

FIRM Act

• Bars reputation-based bank supervision: Federal banking agencies could not consider reputational risk—or a substantially similar concept—when regulating, examining, or supervising banks and credit unions. They would have to remove references to it from their guidance, rules, examination manuals, and similar documents, and could not use it in supervisory findings, ratings, or enforcement actions
• Tailors rules to institutional risk: For regulatory actions, agencies would have to account for the risk profiles and business models of affected institutions and tailor rules to limit burdens where appropriate. They would also have to document how they applied these requirements and review certain regulations issued during the seven years before the bill’s introduction through enactment; revisions would be due within three years after enactment
• Reduces reports for eligible banks: Banking agencies would have to create shorter reporting requirements for banks eligible for the Community Bank Leverage Ratio when they submit the first and third condition reports of a year

1. Introduced
2. In committee
3. Reported▲ THIS MEETING
4. Passed Senate
5. Passed House
6. Law

What’s next: a floor vote. None is scheduled.