Banking and Finance Law Daily Wrap Up, FINANCIAL STABILITY—Senate Banking Committee’s new chairman outlines priorities to ‘make America work for Americans, (Jan 16, 2025)

By A. Bryan Gerepka

Senator Tim Scott says the Banking Committee will use every tool to overturn burdensome “red tape” regulations that drag down the economy and make it harder for Americans to thrive.

The Senate Banking Committee will focus on legislation that increases financial inclusion, removes excess regulations, fosters responsible innovation, and facilitates strong markets to improve economic opportunities for all Americans, according to Sen. Tim Scott (R-S.C.), who will chair the U.S. Senate Committee on Banking, Housing, and Urban for the 119th Congress. In a Jan. 15, 2025, press release, Chairman Scott outlined the Committee’s list of legislative and oversight priorities as it prepares to work with the new administration.

“The American people gave Congress a mandate – let’s get to work,” Chairman Scott said. “I look forward to working with the Trump administration and my colleagues on the Committee to find consensus and advance solutions that improve financial inclusion and create opportunity across the country.”

Senator Scott’s priorities for the 119th Congress Senate Banking Committee are outlined below.

Promote financial inclusivity and opportunity. The Committee will work to include financial literacy provisions to ensure Americans have knowledge of and access to the tools necessary to climb the ladder of success. In addition, the Committee will reexamine recent regulatory proposals that reduce the ability for financial institutions to provide new and innovative financial services, especially to those who need them most. The Committee will also promote several legislative proposals that enshrine cost benefit analyses into law, provide clear rules for new and innovative financial technologies and service providers, and ensure that consumers are equipped with the tools to make informed decisions and are protected from bad actors.

Advance responsible, affordable housing. To increase housing affordability, Chairman Scott will push to implement his ROAD to Housing ACT to revitalize the housing market. The Committee will review how overregulation contributes to excessive costs and delays in the supply of affordable housing and make targeted reforms that will expand opportunities for families and communities across the country.

Increase access to capital. The Banking Committee will promote and develop policies outlined in the Empowering Main Street in America Act to increase access to capital for entrepreneurs and small businesses across the country, as well as pursue much needed reforms to the Securities and Exchange Commission (SEC) to make the agency more transparent and accountable to the American taxpayer and Congress.

Develop a framework for digital assets. The Committee will work to build a regulatory framework that establishes a tailored pathway for the trading and custody of digital assets that will promote consumer choice, education, and protection and ensure compliance with any appropriate Bank Secrecy Act requirements. Chairman Scott added that the Committee will also foster an open-minded environment for new, innovative financial technologies and digital asset products, like stable coins, that promote financial inclusivity.

Protect U.S. economic national security. The Committee will focus on advancing sanctions and export control policies to counter and fight back against threats from adversarial nations and malign actors. The Committee will remain steadfast in promoting U.S. national security by leveraging the strength of the American economy, Chairman Scott added. He called Iran the largest state sponsor of terror, and he alluded to rising threat of China as key areas of concern. Under Chairman Scott, the Committee will foster resilience in critical supply chains, combat illicit finance in transnational criminal organizations, and increase preparedness for advancements in cyber threats and artificial intelligence. Chairman Scott will also conduct robust oversight of economic national security entities in the Committee’s jurisdiction.

Build strong, resilient communities and insurance markets. Strong insurance markets facilitate economic growth, support financial markets, and protect consumers, Chairman Scott stated. The Committee will continue to uphold the successful state-based regulatory system for insurance, and reign in the Consumer Financial Protection Bureau’s (CFPB) and Federal Insurance Office’s (FIO) encroachment on state regulators. To that end, the Committee will ensure the business of insurance remains focused on providing actuarially sound policies and is not unduly impacted by progressive pet projects. Chairman Scott added that he will continue to promote resiliency in repeatedly flooded communities.

Empower local entities to facilitate infrastructure innovation. The Committee will prioritize reducing the bureaucratic regulations that delay commonsense infrastructure projects, as local communities know their city’s infrastructure better than Washington, D.C. ever will, Chairman Scott said. The Committee will also rescind progressive policies that burden families, businesses, and communities, and curtail innovation.

Provide oversight. During the 119th Congress, Chairman Scott said he will ensure all agencies within the Committee’s jurisdiction are open and transparent, follow the law, and advance commonsense policies that create economic opportunity. Chairman Scott will vet and confirm qualified nominees who respect the rule of law and support policies that promote the American Dream. In addition, Chairman Scott pledged to run the Committee under regular order, giving reauthorizations, including the National Flood Insurance Program (NFIP), Export-Import Bank, and Defense Production Act, the consideration they deserve and allowing members to provide sufficient input throughout the legislative process.

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