Sponsors (10)
The bill creates a single, clear 15% investment cap that reduces legal and compliance uncertainty for banks and regulators but may raise systemic concentration risk if it is higher than prior limits and includes an unclear statutory edit that creates short-term ambiguity.
National and state-chartered banks gain a clear, uniform statutory 15% cap on specified corporate/public-welfare investments, reducing legal uncertainty about how much they may invest.
Banks and federal/state regulators get an explicit numeric limit that simplifies compliance and supervisory review, lowering compliance costs and easing oversight burdens.
Depositors, taxpayers, and the broader financial system could face greater risk if the new 15% cap is higher than prior limits, because banks could concentrate more assets in corporate/public-welfare investments.
State member banks and state/federal regulators face short-term legal and operational uncertainty because the amendment to § 338a is unclear (blank insertion), creating compliance ambiguity until clarified.
Based on analysis of 2 sections of legislative text.
Replaces a numeric term in the national bank corporate-power statute with 15 percent and attempts an unclear edit to the state member bank public-welfare investment statute.
Changes a numeric limit in federal bank-power statutes by setting a specific percentage value of 15 in the cited national bank corporate-powers provision and attempts a parallel edit to a state member bank public-welfare investment provision that is not clearly specified in the provided text. The bill also includes a brief clause establishing an official short title for the Act.
Official title: Allow the Comptroller of the Currency and the Board of Governors of the Federal Reserve System to increase the aggregate amount of investments that a national banking association and a State member bank may make to promote the public welfare, and for other purposes.
Introduced July 24, 2025 by Tim Scott · Last progress July 24, 2025