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Washington Update

#2023-16, July 28, 2023

Call to Action: Members Help Needed to Oppose Credit Card Competition Act (CCCA)

The Association is echoing the American Bankers Association’s (ABA) recent call on bankers to contact their United States Senators to urge them to oppose the inclusion of the CCCA in the National Defense Authorization Act bill that is widely anticipated to pass into law.

According to the ABA, “CCCA was reintroduced in the Senate and House in June after its backers failed last year to secure its passage, thanks to the efforts of bankers and other stakeholders. Supporters, including big-box merchants, are working to insert language from the CCCA into this year’s NDAA, as well as mandate a study of credit and debit card fees.”

To contact Senator Warren and Senator Markey urging them to oppose the CCCA amendment, click here.

Federal Stablecoin Legislation Advances out of House Financial Services Committee

Yesterday, the United States House Financial Services Committee voted to advance legislation establishing regulatory framework for stablecoins to the Full House for consideration.

Last week, the Association joined the American Bankers Association and every state banking association to submit testimony to the Congressional Committee on Financial Services opposing a draft stablecoin bill that is expected to be voted on by the Committee in the coming days.

The letter notes our concern that the legislation, as currently drafted, “would create a significant charter arbitrage opportunity that puts consumers at risk, disadvantages banks, and undermines financial stability.”

To read the letter submitted to the Congressional Committee on Financial Services, click here.

We will keep you posted on any developments.

House Financial Services Committee Passes Resolution to Overturn Section 1071 Rule

From the ABA Daily Newsbytes:

The House Financial Services Committee yesterday approved an ABA-supported resolution of disapproval to overturn the CFPB's final rule implementing Section 1071 of the Dodd-Frank Act, which requires the collection and reporting of credit application data for small businesses, including women-owned and minority-owned small businesses. The resolution would need to be adopted by both houses of Congress and signed by the president to overturn the rule. To read the resolution, click here.

Below is an AMA summary of the staff analysis on Section 1071 and its impact on banks:

The proposed implementation of Section 1071 of the Dodd-Frank Act, which requires reporting of detailed data on small business lending, will have far-reaching implications for how lenders approach their small business credit decisions, according to a new staff analysis published by ABA’s economic research team. The analysis notes that while promoting access to capital to minority and women-owned small businesses is a worthwhile public policy goal, it is increasingly evident that achieving that goal through regulatory reporting would simultaneously increase borrowing costs for all small businesses.

The staff analysis illustrates the importance of a dynamic banking system for small-business lending, examines deficiencies in the bureau’s 1071 regulatory analysis, and warns of some of the unintended consequences associated with this rulemaking.

With the House scheduled to markup a Congressional Review Act resolution condemning the CFPB’s Section 1071 rulemaking today, ABA urges bankers and their small-business customers to submit letters in support of the resolution. The association also sent its own letter of support for the resolution to House Financial Services Committee leaders yesterday ahead of the markup.

The Federal Reserve Increases Interest Rates, Highest in 22 Years

Earlier this week, the Federal Reserve’s Federal Open Market Committee (FOMC) raised interest rates by a quarter percent to a range of 5.25% - 5.5% -- the highest such rate in 22 years.
For more information on the FOMC news click the links below:

#2023-15, July 21, 2023 #2023-17, August 4, 2023
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