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Daily Financial Regulation Update --Tuesday, July 20, 2021

July 20, 2021

By FedACTion Task Force

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Congress

Click here to view the full text of the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act"), Enacted March 27, 2020.

Click here to view the full text of the Paycheck Protection Program Increase Act of 2020, Enacted April 24, 2020.

Click here to view the full text of the Paycheck Protection Program Flexibility Act of 2020, Enacted June 5, 2020.

Click here to view the full text of the Consolidated Appropriations Act, 2021, Enacted December 27, 2020.

Click here to view the full text of the American Rescue Plan of 2021, Enacted March 11, 2021.

Click here to view the full text of the PPP Extension Act of 2021, Enacted March 30, 2021.

Click here to view a running list of proposed legislation from the Senate Committee on Banking, Housing, and Urban Affairs, Senate Committee on Small Business and Entrepreneurship, House Committee on Financial Services, and House Committee on Small Business.

U.S. House of Representatives

Committee on Small Business

Bill Introduced to Boost Small Business Cyber Defense

July 19, 2021

House Small Business Committee Chairwoman Nydia M. Velázquez (D-NY) and Rep. Byron Donalds (R-FL) introduced legislation to encourage cooperation between small businesses and the federal government to protect against cyber threats. The Small Business Advanced Cybersecurity Enhancements Act would boost collaboration between the government and small businesses by utilizing Small Business Administration resource partners to share information.

Federal Agencies

U.S. Department of the Treasury

Readout: President's Working Group on Financial Markets Discuss Stablecoins Meeting

July 19, 2021

U.S. Secretary of the Treasury Janet L. Yellen convened the President's Working Group on Financial Markets (PWG) to discuss stablecoins. The PWG was joined by representatives from the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation. Participants discussed the rapid growth of stablecoins, potential uses of stablecoins as a means of payment, and potential risks to end-users, the financial system, and national security. Secretary Yellen underscored the need to act quickly to ensure there is an appropriate U.S. regulatory framework in place.

Federal Reserve Board

Agencies release public sections of resolution plans for eight large banks

July 19, 2021

The Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation released the public sections of eight large domestic firms' resolution plans. These plans, commonly known as living wills, are required by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Report: Results of Analytical Testing of the Board's Publicly Reported Data for the Secondary Market Corporate Credit Facility

July 19, 2021

The Office of the Inspector General of the Board of Governors of the Federal Reserve System published a report titled, "Results of Analytical Testing of the Board's Publicly Reported Data for the Secondary Market Corporate Credit Facility."

Office of the Comptroller of the Currency

Third-Party Relationships: Notice and Request for Comment on Proposed Interagency Guidance

July 19, 2021

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation are seeking comment from interested parties on a notice of "Proposed Interagency Guidance on Third-Party Relationships: Risk Management," which was published in the Federal Register on July 19, 2021. The comment period closes on September 17, 2021.

International

European Commission

Digital Sovereignty: Commission Kick-starts Alliances for Semiconductors and Industrial Cloud Technologies

July 19, 2021

The European Commission commenced two new Industrial Alliances: the Alliance for Processors and Semiconductor technologies, and the European Alliance for Industrial Data, Edge and Cloud.

Bank of England

Remarks: Will the Pandemic "Scar" the Economy?

July 19, 2021

Professor of Economics Jonathan Haskel, External Member of the Monetary Policy Committee, Bank of England, explained in an online webinar how the Bank of England measures the long-term economic damage (known as scarring) that shocks like COVID-19 can cause. In his remarks, he argued that the economy will be less damaged in the long term than feared, because fewer jobs have been lost and companies have invested more in their businesses than expected at the start of the crisis. However, because there is so much uncertainty about the future, Professor Haskel concluded that interest rates should not be raised at this point.

UK Financial Conduct Authority

Guiding Principles on Design, Delivery and Disclosure of ESG and Sustainable Investment Funds

July 19, 2021

The FCA published a letter to the chairs of fund managers setting forth its expectations on the design, delivery and disclosure of environmental, social and governance (ESG) and sustainable investment funds. The guidance was based upon a significant volume of applications for authorization of funds with a sustainable focus and sets forth the expectation of clear and accurate ongoing disclosures to consumers where funds make ESG-related claims.

Administration Changes

Appointments/Confirmation Hearings

Department of the Treasury - Janet Yellen (effective January 26, 2021)

Consumer Financial Protection Bureau - Rohit Chopra (Nominee)

Securities and Exchange Commission - Gary Gensler (effective April 17, 2021)

Small Business Administration - Isabella Casillas Guzman (effective March 16, 2021)

Commodity Futures Trade Commission

Financial Crimes Enforcement Network

National Credit Union Administration - Todd M. Harper

Department of Housing and Urban Development - Marcia Fudge (effective March 10, 2021)

Department of Education - Dr. Miguel Cardona (effective March 2, 2021)