Pending regulations face opposition from Trump and Republican lawmakers, urging a delay in implementation
In the wake of the change in the presidential administration, key federal banking regulators have been actively engaged in rescinding or reconsidering regulations introduced during the Biden era. The Federal Reserve, Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), and National Credit Union Administration (NCUA) have been at the forefront of this deregulatory momentum.
Last July, the Federal Reserve, OCC, and FDIC jointly issued a Notice of Proposed Rulemaking (NPRM) to rescind the 2023 Biden-era amendments to the Community Reinvestment Act (CRA), which had introduced stricter tests and thresholds for banks to maintain good standing. This proposal aims to revert CRA regulations to the 1995 version, preserving the status quo since the 2023 rules were enjoined and never implemented. The public comment period on this proposal closes on August 18, 2025.
The federal banking agencies have also issued additional joint proposals and requests for comment aimed at easing regulatory burden. These include modifying certain regulatory capital standards and addressing payments and check fraud. The Federal Reserve is reviewing the capital framework for large banks with an expert conference in July 2025 focusing on Basel III Endgame and related requirements.
Although the National Credit Union Administration is not specifically mentioned in these recent updates, it typically coordinates with the other federal banking regulators on major rulemakings and is likely aligned with the current deregulatory momentum.
Recently, the House Financial Services Committee held an oversight hearing, during which Republicans questioned regulators about their review of finalized regulations and potential rule rollbacks. The hearing was also attended by the Federal Reserve, OCC, FDIC, and NCUA.
Republicans have expressed dissatisfaction with the regulations that have come from these agencies during the Biden administration, calling them "disastrous" and "partisan." They have urged regulators to avoid moving forward with new rules and regulations in the next two months.
In other news, FDIC Chair Martin Gruenberg announced his retirement, effective January 19, 2023. Michael Barr, the Fed's vice chair for supervision, expects to work with new colleagues at the OCC and FDIC in the coming year on three rulemakings, including the capital requirements proposal.
Despite the ongoing changes, it remains uncertain what the future holds for further CRA or capital requirement amendments. However, it is expected that these agencies will continue to consider evolving banking models such as digital banking in their future considerations.
References: [1] Federal Reserve, OCC, and FDIC Jointly Propose to Rescind 2023 CRA Amendments. (2025, July). Retrieved from https://www.federalreserve.gov/newsevents/pressreleases/bcreg20250722a.htm [2] Federal Reserve, OCC, and FDIC Issue Joint Proposals to Ease Regulatory Burden. (2025, March). Retrieved from https://www.federalreserve.gov/newsevents/pressreleases/bcreg20250317a.htm [3] Federal Reserve to Review Capital Framework for Large Banks. (2025, July). Retrieved from https://www.federalreserve.gov/newsevents/pressreleases/bcreg20250722b.htm [4] House Financial Services Committee Oversight Hearing Transcript. (2025, June). Retrieved from https://financialservices.house.gov/calendar/eventsingle.aspx?EventID=406347
- The federal banking agencies, including the Federal Reserve, Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), and National Credit Union Administration (NCUA), have proposed to rescind amendments to the Community Reinvestment Act (CRA) that were introduction during the Biden era, which could significantly affect the business and finance sector, and is part of the ongoing political discussions and policy-and-legislation trends in general-news.
- The House Financial Services Committee has recently held an oversight hearing during which Republican members questioned regulators about their review of finalized regulations and potential rule rollbacks, reflecting the ongoing debate and dissatisfaction with certain regulations that have come from these agencies in the realm of business, finance, and policy-and-legislation.
