Markup of Various Measures

2025-06-10

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Summary

The meeting covered a wide range of legislative priorities, including consumer privacy in the mortgage market, regulatory relief for small banks, enhancements to capital markets, transparency in housing, and the comprehensive regulation of digital assets [ 00:31:20-00:33:05 ] . While some bills garnered bipartisan support and aimed at modernizing financial systems and protecting consumers, others, particularly those concerning digital assets, led to sharp disagreements and accusations .

Themes

Homebuyer Privacy Protection (H.R. 2808)

The committee discussed the Homebuyer Privacy Protection Act, aimed at curbing abusive marketing practices known as "trigger leads," where consumer mortgage application data is sold without consent . The proposed bill would restrict the sale of this data to third parties unless the consumer explicitly opts in or has a pre-existing relationship with the lender . Supporters highlighted broad bipartisan backing and shared personal experiences of being inundated with unsolicited calls after applying for a mortgage . While generally supportive, some members like Ms. Waters raised broader data privacy concerns and questioned the bill's limited scope, suggesting a universal "opt-in" approach might be more effective . Another concern was that restricting pre-screened offers could inadvertently raise housing costs for consumers by limiting their ability to compare rates .

Small Bank Holding Company Relief (H.R. 2835)

Discussion ensued on the Small Bank Holding Company Relief Act, which seeks to raise the consolidated asset threshold for bank holding companies to qualify for regulatory relief from $3 billion to $25 billion . Proponents argued that this adjustment is long overdue, reflecting changes in the banking landscape and allowing small and mid-sized banks the flexibility to grow and compete [ 01:15:02-01:15:45 ]

. Opponents, led by Ms. Waters, questioned the dramatic 833% increase without sufficient justification or impact studies, fearing it would lead to excessive deregulation . An amendment proposing a more modest increase to $4 billion, accounting for inflation, and a GAO study was introduced but not adopted .

Securities Research Modernization (H.R. 3672)

The committee considered the Securities Research Modernization Act, designed to expand safe harbor provisions for research reports during public offerings . The bill aims to improve access to capital for companies of all sizes by applying existing exemptions, previously limited to emerging growth companies, to all issuers [ 01:39:59-01:40:38 ]

. Supporters emphasized that this would enhance investor transparency and market efficiency without compromising analyst regulations or investor safeguards [ 01:39:19-01:40:38 ] . However, Ms. Waters voiced concerns about potential conflicts of interest if broker-dealers create their own research reports, arguing it could lead to misleading analysis and reduced investor protections .

Crowdfunding Enhancement (H.R. 3645)

The ACCESS Act, aimed at modernizing crowdfunding exemptions to support small businesses and startups, was discussed [ 01:47:10-01:47:13 ]

. The legislation proposes raising the threshold for requiring audited financial reviews from $100,000 to $250,000, with discretion for the SEC to increase it up to $400,000 . Both sides expressed support, noting that the current audit costs can be prohibitive for small capital raises and that a temporary increase during the COVID-19 pandemic proved successful without increasing abuse . The bill was lauded for balancing entrepreneurship with investor protection .

HUD Transparency (H.R. 225)

The HUD Transparency Act, requiring the Department of Housing and Urban Development's Inspector General to testify annually before Congress, was presented as a good governance measure [ 02:00:10-02:00:11 ]

. Proponents highlighted the importance of oversight given HUD's significant budget and the IG's role in uncovering waste, fraud, and abuse . Ms. Waters supported the intent of transparency but also used the opportunity to criticize alleged undermining of Inspector Generals by the administration and to raise broader concerns about housing crises and potential for cryptocurrency use in HUD payments . Several amendments seeking to expand the scope of the IG's reporting or mandate additional testimony were introduced but withdrawn or not adopted [ 02:22:55-02:23:00 ] .

Mentor-Protege Program for Small Financial Institutions (H.R. 3709)

The committee discussed the Advancing the Mentor-Protege Program for Small Financial Institutions Act, which proposes to codify and enhance the Treasury Department's Mentor-Protege Program . This program pairs large banks with smaller ones, including Minority Depository Institutions (MDIs) and rural banks, to provide essential resources, training, and technical assistance [ 02:39:06-02:39:51 ]

. This initiative aims to strengthen and preserve community banks, which are vital for serving low-income, underserved, and minority communities [ 02:39:51-02:40:27 ] . The bill received strong bipartisan support as a means to help these institutions grow and compete .

Digital Asset Market Clarity (H.R. 3633)

The Clarity Act, a landmark bill to create a regulatory framework for digital assets, sparked intense debate . Proponents argued the bill provides much-needed legal certainty, protects consumers, and ensures the U.S. remains a leader in digital innovation by clearly defining the roles of the SEC and CFTC . They asserted that regulatory ambiguity has stifled innovation and pushed it offshore, and that the bill would prevent future FTX-like frauds . Democrats, led by Ms. Waters, vehemently opposed the bill, calling it the "Calamity Act" and alleging it exposes investors to fraud, creates national security risks, and overlooks President Trump's alleged crypto corruption . Numerous amendments were proposed by Democrats to address concerns about official conflicts of interest, prevent taxpayer bailouts, prohibit federal crypto purchases, preserve state regulatory authority, ensure bipartisan agency staffing, and address illicit activity in decentralized finance (DeFi) [ 05:20:22-05:20:26 ]

. All these amendments were not adopted.

Tone of the Meeting

The meeting began with a formal and procedural tone, marked by opening statements and routine bill introductions [ 00:29:58-00:30:54 ] . While discussions on several bills, such as homebuyer privacy, small bank relief, crowdfunding, and HUD transparency, maintained a largely constructive and bipartisan, though sometimes critical, dialogue [ 01:06:47-01:06:47 ]

[ 02:00:08-02:00:08 ] . However, the debate surrounding the Digital Asset Market Clarity Act was highly contentious and deeply polarized . Democrats accused Republicans of facilitating corruption and ignoring serious risks, often referencing President Trump's alleged crypto ventures [ 02:53:22-02:53:31 ] . Republicans, in turn, emphasized the need for regulatory clarity and innovation, accusing Democrats of political messaging and impeding progress [ 03:30:37-03:31:01 ] [ 05:07:25-05:08:55 ] . The overall tone shifted between periods of professional discourse and moments of intense partisan conflict.