Latest news with #SenateBankingCommittee
Bloomberg
40 minutes ago
- Business
- Bloomberg
Senators Urge White House to Release Community Lenders' Funds
A bipartisan group of more than two dozen US senators is asking the Trump administration to release hundreds of millions of dollars earmarked for loans to people and businesses in poor and rural communities. In a letter seen by Bloomberg News, lawmakers led by Senate Banking Committee members Mike Crapo, a Republican of Idaho, and Democrat Mark Warner of Virginia asked White House Budget Director Russ Vought to release $324 million in funds appropriated to the CDFI Fund, a Treasury office that makes grants to lenders operating in communities that are not served by traditional banks.
Politico
3 hours ago
- Business
- Politico
Senate Banking advances first large, bipartisan housing package in a decade
The Senate Banking Committee unanimously advanced landmark housing legislation on Tuesday, marking a rare area of overwhelming bipartisanship in a divided Congress. The Renewing Opportunity in the American Dream to Housing Act of 2025, sponsored by Chair Tim Scott (R-S.C.) and ranking member Elizabeth Warren (D-Mass.), includes proposals that aim to expand and preserve the housing supply, improve housing affordability and access, advance accountability and fiscal responsibility, and improve oversight and program integrity. 'Many people around the country, frustrated with the way we do American politics, wonder, is there any issue that brings this nation together? And I'm here to say hallelujah! We have found one. It is housing,' Scott said before the panel advanced the bill by a 24-0 vote. The legislation directs the Department of Housing and Urban Development to create a new grant and loan program for qualifying homeowners and small landlords to address home repairs and health hazards, develop best practice frameworks for zoning and land-use policies and create a pilot program to incentivize housing development of all kinds in Community Development Block Grant participating jurisdictions, among other actions. Those asks come as the Trump administration is pushing for deep staff and budget cuts at HUD. 'There are new programs here that should operate more directly with the states and local communities so that we're not at the mercy of a stripped down HUD. But I worry about HUD being under resourced to meet its current obligations, much less to take on more,' Warren said in an interview following the markup. Members on both sides of the aisle acknowledged issues with HUD, but said it was important to get something done to improve what many view as a growing housing crisis. The bill received support from a broad range of groups representing the real estate industry, home builders, mortgage bankers, affordable housing organizations and local governments. 'You have to start someplace. And part of it is to upgrade and to modernize a number of the issues that are causing us problems,' said Sen. Mike Rounds (R-S.D.) in an interview on Monday. Some members who have been working on parts of the bill for years acknowledged the potential impact of substantial cuts at HUD.
Boston Globe
9 hours ago
- Business
- Boston Globe
Housing affordability is a major problem. Elizabeth Warren is helping lead a sweeping bipartisan effort to address it.
Advertisement 'This is a moment to say enough with being shocked about the rising price of housing, let's actually do something it,' Warren told The Boston Globe about the legislation, whose shorthand tile is the ROAD to Housing Act. 'That's what this bill is all about.' Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up One of Warren's contributions to the bill is an innovation fund of $1 billion over five years to provide competitive grants to build infrastructure, such as new schools and other uses, to communities that are constructing more housing or changing their land-use rules to make it easier to do. A much larger innovation fund — $10 billion — was a pillar of Advertisement There is no cost estimate yet for the Senate Banking Committee's bipartisan legislation, but its goals are more modest. Still, it's an effort that's desperately needed as housing construction has failed to keep up with demand, causing homes to become more and more unaffordable. 'We have a real problem here in Massachusetts that we simply don't have enough housing,' Warren said, noting that the state is about 200,000 units short of what's needed. 'The federal government has stood on the sidelines for decades while the supply has gotten tighter relative to growth in population. And now is the time to step up and use the tools that are available only at the federal level to start pushing for more housing growth.' 'Not every idea works in every place,' Warren said. 'But creating a menu of ideas so that different cities can pick out the pieces that will permit them to reduce the cost of building is one way that we can get more housing built in America — and we need it.' Advertisement During last year's campaign, 'Housing affordability is a major concern for millions of Americans, and there seems to be a bipartisan appetite, particularly around . . . the need for more affordable housing supply, that Congress wants to be responsive to,' said Dennis C. Shea, chair of the J. Ronald Terwilliger Center for Housing Policy at the Bipartisan Policy Center think tank. 'It seems like housing is having its moment in Congress.' The bill's expected strong support in the Senate Banking Committee stems from every member of the panel contributing to it. 'This is a collaborative effort that includes the work of my colleagues across the committee, and I look forward to advancing these solutions to the full Senate,' Scott said in a statement Friday announcing the legislation along with Warren. Advertisement He took over as chair in January and has made addressing the housing affordability crisis a top priority. That dovetails with a major goal of Warren, who became the panel's top Democrat this year. Scott, who is close to Trump, also could be key in getting the administration's support, Warren said. 'We've got a ways to go before we can get this to the president's desk, but Senator Scott is strongly motivated to get a bill passed,' she said. 'Not to get a bill that we can just talk about, but to actually get something done.' A White House spokesperson did not immediately respond to a request for comment. Warren hopes a strong bipartisan vote from the committee Tuesday will give the legislation momentum. The legislation has the backing of 37 housing organizations, a diverse collection that includes the National Association of Realtors, the National Low Income Housing Coalition, and the National Association of Homebuilders. 'Addressing this crisis demands bold, bipartisan action,' the organizations said in a joint statement of support for the legislation. 'We look forward to its consideration by the full Senate, and hope this momentum continues in the House.' 'If we don't start building more housing here in Massachusetts and all across the country, the housing crisis will continue to intensify,' she said. 'This is a supply problem . . . and it's got a lot of root causes, but that means it takes a lot of pieces to help unlock faster, less-expensive housing construction.' Advertisement Jim Puzzanghera can be reached at
Forbes
a day ago
- Business
- Forbes
Senate Crypto Bill Introduces Hybrid Framework For Digital Asset Oversight
Cryptocurrency & Bitcoin on U.S Currency Investments Background with the United States Capitol ... More Building. The Senate Banking Committee released a significant new proposal last week that could reshape how America regulates digital ownership. On July 22, Senators Tim Scott, Cynthia Lummis, Bill Hagerty, and Bernie Moreno released their "Responsible Financial Innovation Act of 2025" discussion draft to solicit public feedback, which takes a notably different approach from the House's recently passed crypto legislation. While the House CLARITY Act handed primary oversight of most digital assets to the Commodity Futures Trading Commission (CFTC), the Senate is proposing a more complex hybrid approach. As the discussion draft explained, they want the Securities and Exchange Commission (SEC) to handle exemptions and disclosure requirements for a new category called "ancillary assets," while the CFTC would still regulate these assets as commodities—a nuanced framework that could unlock new possibilities for community-based blockchain projects that have struggled to find their regulatory footing. It is a fundamentally different philosophy about how digital assets should integrate into America's financial infrastructure. Where the House sees commodities requiring CFTC oversight, the Senate sees a more nuanced landscape demanding SEC expertise, as well. A Regulatory Chess Match The divergence isn't accidental. Although the House passed its CLARITY Act last week with bipartisan support, it seemed like crypto finally had its regulatory roadmap, the Senate Banking Committee, led by Chairman Tim Scott (R-S.C.) and Digital Assets Subcommittee Chair Cynthia Lummis (R-Wyo.), has long pursued a different approach. "My colleagues and I in the House and Senate share the same goal: to provide clear rules of the road for digital assets that protect investors, foster innovation, and keep the future of digital finance anchored in America," Scott remarked in announcing the discussion draft. However, the 35-page proposal represents more than shared goals. While the Senate's "ancillary assets" approach represents innovative regulatory thinking, it actually builds on a well-established but underutilized foundation of joint SEC-CFTC jurisdiction that dates back to 2000—a framework specifically designed for products that don't fit neatly into traditional securities or commodities categories. The Commodity Futures Modernization Act of 2000 first established this hybrid model when it created "security futures products" that were defined as both securities under federal securities laws and futures under the Commodity Exchange Act. Dodd-Frank expanded this precedent with "mixed swaps" that require both agencies to "jointly prescribe such regulations … as may be necessary." The agencies have formalized coordination through MOUs since 2004, most recently updated in 2018 for swaps oversight. The Senate's ancillary assets framework isn't creating new authority, it's adapting the proven CFMA hybrid model for digital assets that similarly defy traditional categories. Threading the Political Needle This nuanced approach directly addresses Democratic concerns that crypto legislation could become a backdoor for avoiding investor protections. Senator Elizabeth Warren (D-Mass.) has repeatedly warned that broad commodity classifications might let companies evade securities laws simply by tokenizing traditional investments. The ancillary asset framework acknowledges these concerns while recognizing that many blockchain-based projects—with their dynamic, programmable nature— genuinely do not resemble traditional securities. It's a more sophisticated approach than the House's broader commodity classification, potentially building the bipartisan support essential for navigating the Senate's 60-vote threshold requirement. Beyond market structure, the bill tackles illicit finance head-on with provisions requiring examination standards for digital assets and encouraging private sector partnerships with federal law enforcement. The legislation also promotes "responsible banking innovation" by ensuring financial holding companies can use digital assets and distributed ledger systems for any activity banks are otherwise authorized to provide. "For too long,' explained Senator Hagerty, 'outdated laws and regulatory uncertainty around digital asset market structure have hindered American innovation and left consumers without adequate protections." The discussion draft "demonstrates a strong commitment to unlocking the full potential of the digital asset economy by delivering responsible legislation that reflects input from stakeholders," Hagerty stated. Implementation Reality Check Senator Scott has set a September deadline for finalizing market structure legislation, but that goal seems ambitious with the political tenor and climate on the Hill. Congress faces a packed agenda including farm bills, defense authorization, and government funding battles. Industry observers suggest crypto legislation may realistically slip into early 2026. That delay might be beneficial. The discussion draft format signals genuine interest in stakeholder input, with the Banking Committee soliciting feedback through early August. This collaborative approach contrasts sharply with the regulation-by-enforcement strategy that characterized previous crypto oversight. The timeline also provides space for harmonizing House and Senate approaches. Both chambers recognize that clear rules beat regulatory uncertainty, but they're debating optimal structures. The House emphasizes commodity regulation and streamlined oversight. The Senate maintains SEC prominence with targeted exemptions. Market Forces and Community Impact Financial markets have already responded positively to regulatory clarity signals. Bitcoin reached new all-time highs following the GENIUS Act signing, and the total crypto market now exceeds $4 trillion. Major banks are announcing digital asset custody services, signaling institutional acceptance of technologies that communities have already embraced. But the real opportunity transcends individual wealth accumulation. The ancillary asset framework could enable blockchain-based community development that honors cooperative economics principles while leveraging cutting-edge technology. It acknowledges that tokenized ownership, democratic governance, and creator economies represent genuinely new economic models requiring new regulatory approaches. Therefore, the stakes riding on this legislation extend well beyond crypto markets. According to latest data, global crypto adoption grew 13% in 2024, reaching 659 million owners worldwide, with Bitcoin ownership expanding to 337 million users. In the U.S. specifically, research shows that 67% of current crypto owners plan to buy more in 2025, while 14% of non-owners plan their first purchases. Communities that have found economic opportunity in digital assets need regulatory certainty to build sustainable wealth-creation systems. Recent Kraken research found that 88% of crypto holders plan to continue investing over the next 12 months, with crypto becoming the preferred asset class for 53% of holders—a significant jump from just 36% the previous year. Without clear frameworks, this innovation and community wealth-building migrates to friendlier jurisdictions. The Bigger Picture The Senate's approach reflects growing recognition that crypto regulation requires nuance rather than broad categorization. Digital assets encompass everything from speculative meme coins to legitimate community development tools. One-size-fits-all regulation serves neither innovation nor investor protection. The ancillary asset concept represents regulatory evolution—acknowledging that blockchain technology creates new forms of value and ownership that don't fit traditional definitions. It's the kind of forward-thinking approach America needs to maintain leadership in digital finance while protecting all participants. The discussion draft format signals senators want genuine input before finalizing their regulatory strategy, with a comprehensive Request for Information covering regulatory clarity, investor protection, trading venues, custody, illicit finance, banking innovation, and preemption issues. The comment period runs through early August, providing stakeholders meaningful voice in shaping legislation that will govern digital assets for years to come. The question remains whether America can create frameworks that enable new forms of community empowerment and economic participation while maintaining the investor protections that also instill trust in the financial system. The answer will determine whether digital assets fulfill their promise of financial inclusion or remain a niche market for sophisticated traders. That long-awaited sophistication could make all the difference.
The Independent
4 days ago
- Business
- The Independent
Elizabeth Warren opposed Jerome Powell. Now she worries Trump will fire him
Ahead of President Donald Trump's tense visit to the Federal Reserve's office building where he clashed with chairman Jerome Powell, the fed chair's biggest Democratic critic warned that Trump is looking for an excuse to fire him. And she is not OK with that. Sen. Elizabeth Warren (D-MA), the ranking Democrat on the Senate Banking Committee, warned that Trump might remove Powell before his term expires. 'I'm worried about President Trump trying to find a pretext to fire Jerome Powell,' Warren told The Independent as the Senate finished votes for the week on Thursday. Around that time, Trump was visiting the Marriner S. Eccles Federal Reserve Board Building. In recent weeks, Russell Vought, the director of the Office of Management and Budget, and Kevin Hassett, Trump's chairman of the Council of Economic Advisers, have criticized Powell for running over budget for rennovations for the building. The president cannot fire the Federal Reserve chairman, whose term expires in May, without cause. But some fear that Trump might use the renovations as that cause to fire Powell. In a rather remarkable exchange, Trump told reporters, with Powell by his side, that the cost of the renovations was about $3.1 billion, which Powell corrected in real time. When Powell saw the costs Trump presented, Powell said that the president had included the cost of another renovation. 'You just added in a third building,' Powell said. 'It was built five years ago.' Trump has ramped up his criticism of Powell in recent months because Powell has refused to lower interest rates, calling Powell ' a stupid person.' Powell has taken a wait-and-see approach to the effects of the global reciprocal tariffs on the larger financial market, saying that they will spike inflation and slow economic growth. After Trump's meeting with Powell, he reiterated his desire for Powell to lower rates after visiting. 'Our country is booming, and the interest rate is a final little notch,' he told reporters. But Trump stopped short of saying that he wanted to sack Powell. 'I would love to see it completed, I don't want to put that in this category,' he said. Historically, the Federal Reserve has sought to avoid politics as it seeks to fulfill its dual mandate of maintaining low employment and stable prices. Its chairman serves a four-year term that overlaps presidential administrations. But in recent months, Trump has taken aim at Powell, even questioning who nominated him, despite the fact Trump tapped Powell in 2017 to run the central bank to replace Janet Yellen. Warren in the past has criticized Powell, voting against his initial confirmation in 2018 and then again in 2022 when Joe Biden renominated him. At the time, Warren called him a ' dangerous man.' In the past, she criticized his lax approach to oversight of the financial system. After the collapse of Silicon Valley Bank collapsed, Warren said ' Congress handed Chair Powell the flamethrower that he aimed at the banking rules.' But Warren has defended Powell in the name of independence of the central bank, which for more than a century has been a central tenet of the Federal Reserve. 'I strongly believe in transparency and better oversight for the Fed, but Donald Trump has been beating the drum for months to try to fire Jerome Powell, which he cannot legally do,' she told The Independent in an interview last week. 'No one is fooled into thinking that Trump and his henchmen are suddenly really interested in the cost of plumbing and painting for a 90-year-old building.' Warren also said that she wants to see lower interest rates as well, but blamed Trump's tariffs for interest rates remaining high. 'I've pushed for a long time for the Fed to reduce interest rates,' Warren said. 'But Fed Chair Powell, said last month he would have reduced interest rates back in February. except for the chaos that Donald Trump is causing.' Earlier this month, Powell said that the Federal Reserve would have cut interest rates if not for Trump's reciprocal tariffs. 'There is one person who is responsible for those high interest rates and his name is Donald Trump,' Warren said.
