#2022-04, February 4, 2022

Fed Nominees Appear Before Senate Banking Committee

President Biden’s three nominees for the Federal Reserve Board of Governors appeared before the Senate Banking Committee this week during their nomination hearing.  As we reported previously, the President nominated Sarah Bloom Raskin, Lisa Cook and Phillip Jefferson to join Fed Chair Jerome Powell and Governors Lael Brainard, Michelle Bowman, and Christopher Waller on the Board.

Nominees were questioned by Committee members on a variety of topics, including climate change risk, inflation, monetary policy and employment issues.  It is unclear when the Committee will vote on the nominations, which must also be approved by the full Senate.

To read testimony from the nomination hearing and view an archived webcast, click here.

House Includes SAFE Banking Act in China Competitiveness Bill

The US House of Representatives this week approved an amendment to the America Competes Act that includes the text of the SAFE Banking Act, MBA-supported legislation that would create a safe harbor for banks wishing to serve the cannabis industry in states where it is legal.  The SAFE Banking Act, which has passed the House in previous years with broad bipartisan support, was also included in the House version of the Defense Authorization Act but removed in final negotiations with the Senate.

Boston Fed, MIT Researchers Release Initial CBDC Findings

Earlier this week, the Federal Reserve Bank of Boston and the Massachusetts Institute of Technology’s Digital Currency Initiative released a white paper detailing their work on the first phase of the so-called “Project Hamilton,” which is exploring the technical feasibility of issuing a central bank digital currency (CBDC).  The first phase focused on “the feasibility and performance of basic, but resilient transactions.”

The white paper notes that researchers successfully created a core processing engine for a potential general purpose CBDC and explored it in two architectures, both of which they said, “met and exceeded our speed and throughput requirements.”  They also identified several key takeaways that could inform the potential design of a CBDC.  These include using ideas from cryptography, distributed systems, and blockchain technology to provide unique functionality and robust performance; that CBDC design choices are more granular than commonly assumed; and that the project raised important questions that CBDC designers and policymakers will need to address with respect to performance, auditability, functionality and privacy.

MBA has had discussions with the Boston Fed regarding the CBDC research and we continue to follow this issue closely, as it may have a significant impact on the banking industry in the future.

To read more and download the white paper, click here.

Registration for ABA Washington Summit and ICBA Capital Summit Now Open

The American Bankers Association (ABA) is hosting its annual Washington Summit in Washington, DC on March 7-9, 2022.  The meeting will feature opportunities to hear from key federal policymakers and regulators throughout the conference.  In conjunction with the Washington Summit, ABA is also hosting the Mutual Community Bank Forum, Emerging Leaders Forum, and the Women’s Leadership Forum.  The program will be available in a virtual, livestream format this year, so staff at your bank can participate without traveling to Washington.

For more information on ABA’s Washington Summit and to register, click here.

In addition, the Independent Community Bankers of America (ICBA) recently announced that registration is now open for the Capital Summit, which will be held on May 1-4, 2022 in Washington.  Invited speakers include Treasury Secretary Janet Yellen and Senate Banking Committee member Tim Scott (R-SC).

For more information on ICBA’s Capital Summit and to register, click here.

Bankers planning to attend should note that the District of Columbia has implemented a citywide vaccination entry requirement, which requires establishments to verify that patrons are vaccinated against COVID-19.  This includes the hotels which serve as the sites of the Washington Summit and the Capital Summit.  

Attendees will be required to provide their vaccination status to enter meeting rooms in the hotels as well as restaurants and certain other public spaces.  Mask use will also be required in most public spaces unless actively eating or drinking.  We encourage you to plan accordingly.  If health and safety protocols change, we will provide updates in future Washington Updates.