Fed Vice Chair Bowman Announces Supervision Revamp, FinCEN Rescinds Crypto AML Proposals, and CFTC Proposes Crypto Rules

Federal Reserve Vice Chair for Supervision Michelle Bowman announced a restructuring of the Fed's supervision function and previewed updates to the regulatory tailoring framework, aiming to refocus supervision on material risks to bank financial viability. Separately, the Treasury's Financial Crimes Enforcement Network (FinCEN) took steps to withdraw two crypto-related proposals concerning anti-money laundering oversight of transactions involving self-hosted crypto wallets and crypto mixers. Concurrently, the CFTC issued a proposal to regulate leveraged crypto trades offered to retail customers and permit crypto exchanges offering these trades to register with the CFTC. Additionally, ECB official Pierre Wunsch expressed skepticism about a proposal to increase banks' minimum required reserve ratio while keeping required reserves unremunerated.