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Committee votes to raise statutory asset thresholds for regulatory obligations
Summary
HR 3230, the Financial Institution Regulatory Tailoring Enhancement Act, would raise multiple statutory asset thresholds (including a proposed increase from $10 billion to $50 billion for certain requirements). Supporters said thresholds are outdated; opponents called the change a large rollback of post‑crisis safeguards.
Committee approves bill to modernize asset thresholds that trigger enhanced regulation.
Representative Andy Barr presented HR 32 30, the Financial Institution Regulatory Tailoring Enhancement Act, saying the bill “modernizes outdated statutory thresholds that have imposed unnecessary and disproportionate burdens on smaller, lower risk financial institutions.” Barr proposed raising several thresholds that were set following the Dodd‑Frank Act and said the increases reflect inflation and industry changes.
Supporters argued that the $10 billion thresholds created compliance burdens for institutions that are not systemically complex, and that arbitrary lines can force banks to limit growth or merge to absorb compliance costs. Barr said the bill raises a key threshold to $50 billion for certain enhanced requirements.
Ranking Member Maxine Waters strongly opposed the measure, describing it as “too many dramatic increases in regulatory thresholds with little justification” and warning that raising thresholds to $50 billion would exempt many large institutions from important post‑crisis safeguards. Waters noted that inflation-adjusted thresholds would be far lower than the $50 billion figure proposed.
The committee adopted the substitute and ordered HR 32 30 favorably reported to the House; the recorded committee vote on ordering the bill as amended was 29 ayes and 23 nays.
