BTC PULSE
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise
No Result
View All Result
Play Now
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise
No Result
View All Result
BTC PULSE
No Result
View All Result
Play Now
Home Regulation

US Treasury Pushes for Stricter Nonbank Regulations in Wake of Banking Crisis

by Dan K
Apr 24, 2023 - 10:30 am
in Regulation
Logo and signage of CoinShares at their office entrance.

Stricter Nonbank Rules Proposed

U.S. Treasury Secretary Janet Yellen and other top financial regulators have put forth new rules aimed at streamlining the process for designating nonbank institutions as systemically important. These changes will enable the Federal Reserve to more effectively supervise and regulate these entities, which could pose a threat to the stability of the U.S. financial system.

Concerns Over Nonbank Institutions

In recent years, nonbank financial institutions have grown in size and influence, yet they remain largely unsupervised. These firms, which include venture capital firms, crypto companies, and hedge funds, are not insured by the FDIC and can pose risks to the broader financial system when they experience periods of distress. Yellen emphasized the need for a more effective designation process, as the current one can take up to six years to complete.

New Guidance Measures

The proposed guidance measures aim to eliminate hurdles in the designation process and replace the existing 2019-era rules. The new process will involve an analysis by the FSOC to determine if the financial distress of a company or its activities could pose a threat to U.S. financial stability. Officials claim that the streamlined process will still allow ample time for communication between regulators and institutions.

Lessons from the Recent Banking Crisis

Following the recent collapses of Silvergate Bank, Signature Bank, and Silicon Valley Bank in the worst banking crisis since 2008, Yellen reassured the public of the U.S. banking sector’s stability. She emphasized the importance of a robust supervisory and regulatory regime to prevent financial disruptions and contagion, using the recent crisis as an example of the need for greater oversight and emergency provisions for the FSOC and the Fed.

Conclusion: Strengthening Financial Stability through Nonbank Oversight

The proposed changes to nonbank regulations and oversight demonstrate the U.S. Treasury’s commitment to ensuring the financial stability of the country. By streamlining the designation process and improving communication between regulators and nonbank institutions, the new guidance aims to mitigate the systemic risk posed by these entities. As the financial landscape continues to evolve, it is crucial for regulators to adapt and address emerging risks to safeguard the stability of the U.S. financial system and protect the interests of investors and citizens alike.

Dan K

Dan K

Dan K, the chief editor, is a visionary wordsmith, shaping narratives with finesse. His discerning eye for detail creates literary masterpieces.

Related Posts

Brian Armstrong, CEO of Coinbase, speaking about Chase UK's recent crypto restrictions.

Coinbase’s Brian Armstrong Calls Out Chase UK for Restricting Crypto Transactions

September 27, 2023

Brian Armstrong, CEO of Coinbase, condemns Chase UK's crypto restrictions, suggesting United Kingdom crypto users reconsider their banking...

Executives from Binance and CommEX shaking hands with a digital backdrop of both companies' logos.

Binance Finalizes Complete Departure from Russia with Sale to CommEX

September 27, 2023

Cryptocurrency exchange Binance solidifies its exit from Russia by sealing a deal with CommEX, marking an end to...

Portrait of Pablo Renato Rodriguez, convicted co-founder of AirBit Club.

Crypto Mining ‘Ponzi’ Scheme Mastermind Jailed for 12 Years

September 27, 2023

Pablo Rodriguez, co-founder of AirBit Club, gets 12 years in prison after defrauding investors of over $100M. He...

Gemini logo with the backdrop of its Gurgaon office building.

Gemini Doubles Down on India: $24M Investment Despite Crypto Tax Hurdles

September 26, 2023

Gemini plans a $24 million investment in its Gurgaon center, aiming to double its staff, even amidst India's...

Press Releases

David Ferrucci next to the Elemental Cognition brand emblem.

BM Watson’s Lead Developer Secures $60M for New AI Venture, Elemental Cognition

August 18, 2023

David Ferrucci, has raised a remarkable $60M for his AI startup. The company brings forward two pioneering chatbot solutions designed...

pulse5

Amsterdam Gets with the Dutch Blockchain Days the Biggest Event of the Benelux in the Field of Blockchain, Crypto Currencies, NFTs and Other Web3 Developments

May 8, 2023

Discover the future of blockchain, crypto, NFTs, and Web3 at Dutch Blockchain Days, the largest event in Benelux.

pulse4

Korea Blockchain Week 2023 Set to Push the Boundaries after Record-Breaking 2022 Event

May 8, 2023

Korea Blockchain Week 2023 returns after a highly successful 2022 event, featuring leading experts and the latest trends in blockchain...

pulse3

Istanbul Will Be Hosting Eurasia’s Largest Blockchain Event Once again on May 8–11, 2023

May 8, 2023

Join Eurasia's largest blockchain event, the Blockchain Economy Istanbul Summit, May 8-11, 2023, and discover the future of financial technology.

View All
BTC-Pulse LogoTransparent

© 2023 BTC-PULSE. Disclaimer: The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

News

  • Altcoins
  • Bitcoin
  • Ethereum
  • NFT
  • Regulation
  • WEB 3.0

Info

  • Learn
  • Price Prediction
  • Events
  • Press Releases
  • Sitemap

Company

  • About Us
  • Terms of Service
  • Privacy Policy
  • Contact Us
  • Advertise

©2023 BTC-PULSE – All right Reserved.

No Result
View All Result
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise