This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news for professionals in the financial industry, banking, credit unions, insurance, payment processing, fintech, credit card issuing, asset management, venture capital, private equity, and crypto-currencies. Once a week, we break down the most important updates in this space in under five minutes.

Want to track other GR news in adjacent industries? Don’t miss this week’s updates in ICT & Cybersecurity. Also consider subscribing to our Finance - Ottawa edition covering critical GR news north of the border.

Dates: 2026-03-29 to 2026-04-04

📋 In This Week's Newsletter

• 🇺🇸 Federal Government News
• 📜 Legislative Updates
• 🗺️ State Government News
• 📚 What We're Reading This Week

Federal Government News

FSOC Proposes New Interpretive Guidance for Nonbank Financial Company Oversight

The Financial Stability Oversight Council released proposed interpretive guidance outlining its analytic methodologies and approach for determining the supervision and regulation of nonbank financial companies under Section 113 of the Dodd-Frank Act. The proposal prioritizes an activities-based approach to risk identification before considering entity-level designations for enhanced oversight. It restores a higher analytical threshold for considering threats to U.S. financial stability and requires a cost-benefit analysis for any designation. The Council also plans to consolidate current guidance documents and increase engagement with member agencies and regulated companies. Comments on the draft are due by May 14, 2026.

Sources: www.federalregister.gov

SEC Issues Order Allowing Broker-Dealers to Use Large-Cap Equity Collateral

The Securities and Exchange Commission issued an order permitting broker-dealers to post baskets of Russell 1000 or S&P 500 equity securities as collateral when borrowing fully-paid or excess margin securities from qualified institutional lenders. Conditions include daily marking-to-market, diversification and concentration limits, and eligibility requirements for both collateral and lenders. Additional procedures handle currency-denominated loans, collateral substitution due to eligibility changes, and over-collateralization. Broker-dealers must act if collateral ceases to qualify, either by returning borrowed securities or posting new compliant collateral within five days.

Sources: www.federalregister.gov

OCC Finalizes Rescission of Recovery Planning Rule for Large Banks

The Office of the Comptroller of the Currency adopted a final rule rescinding recovery planning guidelines for large insured national banks, federal savings associations, and federal branches. Previously applied to banks with over $100 billion in assets, the now-rescinded guidelines required detailed recovery plans to prepare for stress events. The OCC determined that such requirements did not materially improve risk management and introduced regulatory burdens. Covered banks are no longer required to maintain formal recovery plans, effective May 1, 2026.

Sources: www.federalregister.gov

SEC Proposes Increased Thresholds for Performance-Based Investment Adviser Fees

The Securities and Exchange Commission announced its intent to raise the minimum asset and net worth thresholds for clients to be considered 'qualified' for performance-based advisory fee arrangements. The assets-under-management test will increase from $1,100,000 to $1,400,000, and the net worth threshold from $2,200,000 to $2,700,000, both reflecting inflation adjustments. Existing contracts are unaffected unless amended after the order’s effective date, which is anticipated to be in June 2026. Public comment on the planned order is open through April 27, 2026.

Sources: www.federalregister.gov

White House Releases Summary of Working Families Tax Cuts Implementation

The White House published a summary stating that President Trump’s Working Families Tax Cuts have resulted in an 11% increase in average tax refunds, with the average refund now exceeding $3,700. Nearly 20 million taxpayers have reportedly used the 'No Tax on Overtime' provision, 4.6 million have benefited from 'No Tax on Tips,' and close to half of all filers have claimed at least one new tax cut. Small business owners have seen an average $7,000 tax reduction, and restoration of immediate deductibility for R&D expenses reportedly enabled $100 billion in unlocked deductions.

Sources: www.whitehouse.gov

Legislative Updates

Pay Our Homeland Defenders Act

Bill 8029, titled the Pay Our Homeland Defenders Act, which treats economic and public finance issues, was received in the Senate. The latest procedural action forwards Senate consideration.

Sources: www.congress.gov

Further Additional Continuing Appropriations Act, 2026

Bill 7147, the Further Additional Continuing Appropriations Act, 2026, focusing on economics and public finance appropriations, was the subject of a message on Senate action sent to the House.

Sources: www.congress.gov

To amend title 31, United States Code, to prohibit the issuance of United States currency and securities containing the signature of the sitting President.

Bill 8174 proposes to amend the U.S. Code to prohibit the issuance of U.S. currency and securities bearing the signature of the sitting President; referred to the House Committee on Financial Services.

Sources: www.congress.gov

To restrict the repatriation of funds by noncitizens receiving Federal benefits, to require verification and certification of compliance, and to establish a centralized database within the Department of the Treasury for monitoring, enforcement, and reporting.

Bill 8172, introduced to restrict fund repatriation by noncitizens receiving federal benefits, mandates compliance verification and creation of a Treasury database. Referred to Financial Services and Oversight committees.

Sources: www.congress.gov

To create a database of eviction information, establish grant programs for eviction prevention and legal aid, and limit use of housing court-related records in consumer reports, and for other purposes.

Bill 8185 would require a federal eviction database, support grant programs for prevention and legal aid, and restrict consumer report use of housing court records; referred to the House Financial Services Committee.

Sources: www.congress.gov

To amend the Internal Revenue Code of 1986 to deny tax-exempt status to certain organizations receiving contributions or gifts from citizens or nationals of foreign adversaries.

Bill 8166 proposes an amendment to deny tax-exempt status for organizations funded by citizens or nationals of foreign adversaries. The measure is now before the House Ways and Means Committee.

Sources: www.congress.gov

To direct the Secretary of Housing and Urban Development to establish a demonstration program to develop workforce housing and affordable housing in areas where the workforce is expanding significantly, and for other purposes.

Bill 8171 would authorize a HUD-led demonstration project targeting workforce and affordable housing in regions with rapid workforce growth. The legislation was referred to the Financial Services and Appropriations committees.

Sources: www.congress.gov

State Government News

New York Governor Hochul Advocates for Affordable Housing and Lower Insurance Costs

In a Southern Tier address, Governor Hochul pressed for changes to environmental review laws to encourage housing construction and called for insurance reform to reduce high premiums in New York.

Sources: www.governor.ny.gov

Ohio Governor DeWine Recognizes April as Fraud Prevention Month

Governor DeWine proclaimed April as Fraud Prevention Month, with state agencies promoting consumer protection efforts and program integrity to safeguard taxpayer funds.

Sources: governor.ohio.gov

Texas Governor Abbott Reappoints Kinsey as Education Board Chair

Governor Abbott reappointed Aaron Kinsey as Chair of the Texas State Board of Education, continuing his term through April 2028 and overseeing $60 billion in education-related investments.

Sources: gov.texas.gov

What We're Reading This Week

• There’s Extreme Volatility in the Mortgage Market. See How It’s Playing Out.: Mortgage rates continue to swing sharply, affecting borrowing costs and refinancing decisions.
• Opinion | The Good Friday Budget Unveil: A Wall Street Journal editorial examines the timing and implications of the recent federal budget announcement.
• 5 Financial Freebies Every Investor Should Claim: Investors can take advantage of free resources, including tax tools and financial planning calculators.
• Opinion | Kings of Dark Money: The Wall Street Journal editorial board discusses political spending patterns and their effects on U.S. campaigns.
• Exclusive: BoE's Bailey invokes 2008 lessons amid private credit scrutiny: The Bank of England governor references 2008 financial crisis experience when discussing monitoring of private credit markets.

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