Sponsors (8)
The bill eases regulatory burdens and increases numerical predictability for many mid‑sized banks, but does so at the expense of narrower supervisory coverage and potentially higher systemic and taxpayer risk along with reduced democratic oversight of threshold changes.
Mid‑sized banks and bank holding companies with assets below the raised thresholds will face fewer FSOC designations and less enhanced supervision, reducing regulatory and compliance burdens on those firms and potentially lowering some costs passed to customers.
Banks and covered financial companies will have thresholds indexed to nominal GDP and clearer numeric triggers, reducing the chance that inflation or nominal growth alone changes a firm's regulatory status and improving predictability for institutions and supervisors.
Coordinating threshold reviews across the Fed, OCC, and FDIC will harmonize coverage rules and reduce compliance complexity for banks that operate under multiple regulators.
Taxpayers, depositors, and ordinary customers could face greater systemic risk because raising designation thresholds may leave growing but not 'giant' firms outside enhanced oversight and prudential supervision.
Consumers and small businesses may be more exposed to losses in a financial crisis if fewer institutions are subject to stricter supervision and resolution planning.
Reducing the number of institutions subject to assessments could lower fee revenue that funds supervisory activities, potentially shifting oversight costs to taxpayers or reducing regulatory resources.
Based on analysis of 3 sections of legislative text.
Raises many dollar-based asset and reporting thresholds in federal banking laws to much larger amounts and requires regulators to adjust those thresholds upward every five years using a formula tied to current‑dollar U.S. GDP. The changes increase the asset cutoffs that trigger enhanced supervision, reporting, and designation for bank holding companies, savings and loan holding companies, covered financial companies, and related assessments, and set specific timing, rounding, publication, and reporting rules for periodic adjustments.
Introduced December 10, 2025 by Garland H. Barr · Last progress December 10, 2025