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: 2026-05-03 to 2026-05-09

📋 In This Week's Newsletter

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

This Week's Congressional Calendar

• House Financial Services Committee: Markup on Various Measures: The House Financial Services Committee will conduct a markup on various legislative measures on May 13, 2026, in Room 2128, Rayburn House Office Building.
• House Oversight Subcommittee Hearing: DoW Financial Management: The House Oversight and Government Reform Subcommittee on Government Operations will hold a hearing titled “DoW Financial Management: Examining Progress and New Audit Approaches” on May 13, 2026, in Room 2154, Rayburn House Office Building.

Federal Government News

SEC: Expanded Affiliate-Principal Transaction Indicator Proposed for TRACE Reporting

The Securities and Exchange Commission published a proposal from FINRA to expand the scope of the Trade Reporting and Compliance Engine (TRACE) rule to require member firms to identify affiliate-principal transactions between member affiliates, in addition to non-member affiliates. The expanded indicator aims to capture trades executed among affiliated broker-dealers on the same day, at the same price, and in the same TRACE-Eligible Security, when one of the firms also has offsetting trades with unaffiliated counterparties. The goal is to suppress from public dissemination any inter-affiliate transaction information that does not offer distinct pricing or volume insights, which could otherwise distort market activity trends. FINRA estimates about 5.7% of corporate debt trades involve such relationships, with a small group of member firms comprising most activity. The rule also details procedures for reporting, corrections, and periodic affiliate identification. Comments on the rule are open through May 27, 2026.

Sources: www.federalregister.gov

SEC: Order Approving CDS Clearing Rule Updates for LCH SA

The SEC approved amendments to the CDS Clearing Rule Book for LCH SA, incorporating new provisions required by French and EU law. Changes include updated outsourcing requirements for clearing members, with LCH SA now explicitly able to withdraw approval if outsourcing arrangements are deemed risky. Disclosure requirements are added for outsourced providers, especially when not clearing members. The LCH SA Contribution’s minimum remains €20 million but will be periodically reviewed. Recovery and resolution procedures are updated to comply with the EU CCP Recovery and Resolution Regulation, introducing cash call and variation margin haircut tools, and clarifying how the French resolution authority may adjust member obligations or suspend rights in insolvency scenarios.

Sources: www.federalregister.gov

SEC: Notice on LCH SA RepoClear Exemption Application

The SEC published a notice concerning LCH SA’s application to amend exemptions under Section 36 of the Securities Exchange Act. LCH SA seeks to add U.S. clearing members to its RepoClear platform, reclassifying it as Non-Registrable Business, and requests conditional relief for rule changes primarily affecting RepoClear. The application details compliance requirements, notification duties for adding and removing U.S. members, and maintains that these changes would not affect the CDSClear or DigitalAssetClear business lines. Public comments are due by June 5, 2026.

Sources: www.federalregister.gov

DTCC Amends Rule to Meet Rule 17ad-22(e)(19) Standards

The Depository Trust Company filed a rule change updating Rule 2, granting DTC the authority to request books, records, and information relating to a participant’s relationships with indirect participants. Previously, the Rule restricted DTC’s access to such information. The revision is designed to align DTC’s policies with SEC Rule 17ad-22(e)(19), supporting more robust risk identification, monitoring, and management concerning indirect participant arrangements, as required for covered clearing agencies.

Sources: www.federalregister.gov

White House: Tribal Trust Land Homeownership Act Signed

On May 4, 2026, the President signed the Tribal Trust Land Homeownership Act into law. The Act codifies and sets processing deadlines for the Bureau of Indian Affairs regarding residential and business leasehold mortgages on trust or restricted Indian land. The new law imposes statutory requirements for timely handling of mortgage transactions involving tribal trust lands.

Sources: www.whitehouse.gov

Legislative Updates

Bank Fraud Technology Advancement Act of 2026

Bill H.R. 8671, titled the Bank Fraud Technology Advancement Act of 2026, was introduced and referred to the House Financial Services Committee. The bill proposes to address the technological tools and resources available for the prevention and investigation of bank fraud.

Sources: www.congress.gov

Homeownership Savings Act

H.R. 8709, the Homeownership Savings Act, was referred to the House Committee on Ways and Means. The bill would create measures encouraging individual saving for homeownership.

Sources: www.congress.gov

Repeal of CFPB Remittance Transfer Rule Withdrawal

A congressional resolution (H.J.Res. 175) was introduced to disapprove the Consumer Financial Protection Bureau's withdrawal of a rule on deceptive marketing practices about remittance speed and cost. The measure awaits action in the House Financial Services Committee.

Sources: www.congress.gov

CFPB Rule Withdrawal Disapproval – Sensitive Consumer Information

H.J.Res. 179 was introduced to provide for congressional disapproval of the CFPB’s withdrawal of guidance concerning insufficient data protection or security for sensitive consumer information, now pending in the House Financial Services Committee.

Sources: www.congress.gov

Bill to Prohibit 'Buy Now, Pay Later' Loans for Assault Weapons

H.R. 8694, introduced to amend Title 18, United States Code, would prohibit the use of short-term Buy Now, Pay Later loans for purchasing semiautomatic assault weapons. The bill was referred to the Judiciary Committee.

Sources: www.congress.gov

State Government News

Indiana Enacts Cryptocurrency Kiosk Ban and Proxy Advisor Transparency Law

Indiana has banned cryptocurrency kiosks, with enforcement authority granted to the state Attorney General. A separate law now requires proxy advisors to disclose whether recommendations to shareholders are based on written financial analysis.

Sources: www.indianasenaterepublicans.com

Texas Approves SBA Disaster Loans for Storm-Affected Communities

Texas received approval for a disaster declaration from the U.S. Small Business Administration, making residents and businesses in ten North Texas counties eligible for low-interest recovery loans after April’s severe storms.

Sources: gov.texas.gov

California Seeks FEMA Extension and Disaster Funding for LA Wildfires

The California Governor has requested extended federal disaster assistance and expedited FEMA public assistance disbursements for Los Angeles wildfire survivors, citing continued delays in permanent housing and insurance payouts.

Sources: www.gov.ca.gov

Indiana Amends State Pension and Property Tax Laws

Indiana enacted a law allowing state workers to change retirement plan selections and extended the property tax circuit breaker through 2028; assessors now need permission to enter property for inspections.

Sources: www.indianasenaterepublicans.com

What We're Reading This Week

• Crypto giants pushed to ease rules on risky assets in Senate bill: U.S. senators are considering new measures to relax rules for crypto holdings at major U.S. investment firms.
• The ‘Perfect Storm’ Hanging Over Britain’s Public Debt: Rising interest costs and inflation challenge the UK government’s management of public sector debt.
• Column | Managing a parent’s money is the hardest job you never applied for: Adult children increasingly face complex decisions in handling aging parents’ financial affairs.
• Job Market Starts to Show Glimmers of Good News: Recent data indicate renewed strength in U.S. hiring as payrolls grow faster than expected.
• The best credit cards for international travel, chosen by an expert traveler: Travel experts share recommendations on credit cards offering top rewards and protections abroad.

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