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: 2026-04-05 to 2026-04-11

📋 In This Week's Newsletter

• 🏛️ This Week's Congressional Calendar
• 🇺🇸 Federal Government News
• 📜 Legislative Updates
• 📚 What We're Reading This Week

This Week's Congressional Calendar

• House Financial Services Subcommittee on Capital Markets: Hearing on Fraud and Exploitation: The House Financial Services Subcommittee on Capital Markets will hold a hearing titled 'Safeguarding Main Street: Combatting Fraud and Exploitation in Our Capital Markets' on April 15, 2026, at 2:00 p.m. ET. Scheduled witnesses include senior representatives from FINRA, AARP, and the private sector. Rayburn House Office Building, Room 2128.
• House Financial Services Subcommittee on Financial Institutions: Access to Credit Hearing: On April 16, 2026, at 2:00 p.m. ET, the subcommittee will conduct a hearing titled 'Promoting Access to Credit for Everyday Americans.' Rayburn 2128.
• Senate Special Committee on Aging: Financial Literacy and Fraud Prevention Meeting: The Senate Aging (Special) Committee will convene April 15, 2026, at 3:30 p.m. ET, to examine ways to empower seniors through financial literacy, prevent fraud, and support financial independence. Hart Senate Office Building, Room 216.

Federal Government News

Anti-Money Laundering and Countering the Financing of Terrorism Programs Proposed for Banks and Financial Institutions

The Treasury Department’s Financial Crimes Enforcement Network (FinCEN), OCC, FDIC, and NCUA proposed rules requiring banks and other financial institutions to establish effective AML/CFT programs. The proposals seek to create uniform, risk-based policies for financial institutions—mandating board- or management-approved, written internal controls, customer identification, ongoing due diligence, independent testing, and continuous employee training. Banks must identify, assess, and document money laundering and terrorist financing risks, incorporate FinCEN's priorities, and revise their programs promptly as those risks change. The rules call for greater coordination with FinCEN, emphasize the supervisory distinction between establishing and maintaining a program, and focus significant enforcement action on systemic failures versus isolated deficiencies. The proposed effective date is 12 months after finalization, and industry feedback is requested on definitions, compliance standards, and program documentation.

Sources: www.federalregister.gov, www.federalregister.gov

Joint Treasury Rulemaking on Anti-Money Laundering, CFT, and Sanctions Programs for Permitted Payment Stablecoin Issuers

FinCEN and the Office of Foreign Assets Control (OFAC) jointly issued a proposed rule to implement the GENIUS Act, covering permitted payment stablecoin issuers (PPSIs). PPSIs would be classified as financial institutions under the Bank Secrecy Act and required to maintain effective AML/CFT and sanctions compliance programs tailored to their size and complexity. Obligations include one-to-one reserve backing, monthly composition reporting, reserves held with specified counterparties, and restrictions on yield and use of government-related terms. PPSIs must have technical abilities to block or freeze impermissible transactions and comply with lawful orders, including on secondary-market activity. Under the proposal, PPSIs face potential civil penalties up to $100,000 per day for program violations. Comments are sought by June 9, 2026.

Sources: www.federalregister.gov

FDIC Proposes Requirements for Payment Stablecoin Issuers and Custodians

The FDIC issued a proposed rule implementing key aspects of the GENIUS Act for FDIC-supervised permitted payment stablecoin issuers (PPSIs) and insured depository institutions. PPSIs would face requirements on reserve asset composition (narrowly limited to deposits, short-term Treasuries, and secured money market instruments), one-to-one backing, capital and liquidity, risk management standards, and redemption policies. PPSIs would not be allowed to pay interest or yield solely for holding stablecoins, and prohibited from pledging or rehypothecating reserves except for certain operational uses. The rule clarifies that deposits held as reserves for payment stablecoins receive insurance only for the issuing PPSI, not stablecoin holders, and clarifies that tokenized deposits are treated the same as traditional deposits for insurance purposes. Custodians of stablecoin reserves would be subject to new segregation and recordkeeping requirements. Comments are due by June 9, 2026.

Sources: www.federalregister.gov

OCC and FDIC Finalize Rule Banning Use of Reputation Risk in Supervision

The Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation finalized rules removing 'reputation risk' from their supervisory frameworks. The regulation prohibits these agencies from criticizing or taking adverse action against institutions solely on the basis of alleged reputation risk. The rules also forbids regulators from instructing institutions to close, modify, or refrain from offering products or services to entities based on political, social, cultural, or religious views, or on the basis of lawful but disfavored activities perceived as presenting reputation risk. The agencies clarified that these prohibitions do not affect their enforcement of anti-money laundering, OFAC sanctions, or traditional financial risks. The effective date is June 9, 2026.

Sources: www.federalregister.gov

White House Declares National Financial Literacy Month and Launches Trump Accounts

The President issued a message designating April as National Financial Literacy Month, promoting initiatives to expand financial education and support economic mobility. The administration cites new financial education resources from the Treasury, job growth policies, and the One Big Beautiful Bill tax overhaul. The message details the rollout of Trump Accounts, which provide every child born from 2025 to 2028 with $1,000 in a long-term savings vehicle for education, housing, or entrepreneurship. Ongoing priorities include boosting blockchain and digital finance innovation capabilities.

Sources: www.whitehouse.gov

Legislative Updates

Homeland Security and Further Additional Continuing Appropriations Act, 2026 (Bill 8206)

This bill was referred to the Committee on Appropriations and the Committee on the Budget for jurisdictional review. It addresses funding for homeland security and continued government operations for fiscal year 2026.

Sources: www.congress.gov

Taxpayer Experience Improvement Act (Bill 7971)

The Taxpayer Experience Improvement Act has been placed on the Union Calendar (No. 527). This legislation is focused on reforms to enhance taxpayer services and the overall experience with the IRS.

Sources: www.congress.gov

IRS Whistleblower Program Improvement Act (Bill 7959)

This bill has reached the Union Calendar (No. 526). It proposes modifications to strengthen the IRS Whistleblower Program, including updates to award processes and protections for whistleblowers.

Sources: www.congress.gov

Survivor Justice Tax Prevention Act (Bill 2347)

Placed on the Union Calendar (No. 519), this House bill would amend the tax code to support survivors, with new tax relief measures for eligible individuals.

Sources: www.congress.gov

SEED Act (Bill 5334)

The SEED Act has been placed on the Union Calendar (No. 520). It relates to targeted tax policy changes—details of implementation to be determined as the bill proceeds.

Sources: www.congress.gov

Doug LaMalfa Federal Disaster Tax Relief Certainty Act (Bill 5366)

Placed on the Union Calendar (No. 525), this bill addresses federal tax relief for disaster areas and enhances certainty for affected taxpayers.

Sources: www.congress.gov

Volume II Transparency Act of 2026 (Bill 8215)

This legislation was referred to the House Committee on the Judiciary. The act addresses government transparency practices regarding Volume II of a designated report or program.

Sources: www.congress.gov

What We're Reading This Week

• US banks could release $320 billion in capital with new draft rules, analysts say: Analysts estimate new capital rules may permit US banks to unlock $320 billion, impacting lending and capital planning.
• Opinion | Digital Asset Rules Need Clarity: A Wall Street Journal editorial calls for comprehensive clarification of US rules on digital asset markets.
• Fed asks about US banks' exposure to private credit firms, Bloomberg reports: The Federal Reserve is inquiring about banks’ links to private credit funds amid concerns over risk transmission.
• Outflows from leveraged loan funds jump as investors shun credit risk: Investors withdrew sharply from leveraged loan funds, signaling a move away from higher credit risk investments.
• ECB backs EU plan to centralise financial supervision: The European Central Bank supports EU proposals for a single supervisory authority to oversee financial markets.
• BofA sees opportunity in India's battered bank stocks, expects IT sector to underperform: Bank of America sees a rebound opportunity in Indian bank equities, anticipating relative weakness in IT sector shares.
• Record monthly outflows from India's financials deepen market slide: Massive outflows from Indian financial stocks contributed to ongoing market declines this month.
• Private credit sector stresses could be catastrophic, but not just yet: Analysts warn of potential systemic issues in the private credit market if current trends persist.

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