Bill Hulse
Senior Vice President, Center for Capital Markets Competitiveness, U.S. Chamber of Commerce
Published
April 16, 2025
During the annual State of American Business program in January, the U.S. Chamber made clear the urgent need to roll back the worst of the regulatory onslaught from the past four years to create opportunities for workers and businesses to thrive. A U.S. Chamber survey of financial decision-makers found that 87 percent of U.S. businesses reported being negatively affected by regulatory-related cost increases.
Fortunately, the current administration has wasted no time on rightsizing financial regulations that hamstring economic growth and can serve as a model for deregulation done right. These actions have benefited consumers and will make it easier for businesses to raise the capital they need to expand and create well-paying jobs.
CFPB
Congress teed up two major deregulatory wins for President Trump. On April 9, the House passed two Congressional Review Act (CRA) Resolutions to overturn two rules issued by the CFPB in the final hours of the previous administration.
The first CRA Resolution overturns a rule that would prevent banks and credit unions from offering overdraft products to consumers. The CRA Resolution rebukes the previous administration’s regulations to institute price caps that make products like overdrafts inaccessible to the very consumers who rely on them.
The second CRA Resolution overturns a rule that could stifle innovation by certain digital payments companies by subjecting them to stricter oversight by the CFPB without explaining why this would serve the needs of consumers.
Additionally, Chairman Hill (R-AR) and Republican members of the House Financial Services Committee sent a letter to the CFPB advising that numerous other CFPB rules should be significantly modified or rescinded, including the CFPB’s rule prohibiting information about medical debt from being included on a credit report.
Capital Markets
The administration is embracing innovation in our capital markets and notching early wins to drive investment. The SEC is convening public forums that recognize new technology—including artificial intelligence and distributed ledgers—is critical to 21st-century capital markets. This administration recognizes that we need regulations that promote, not stifle, fundraising options for start-up companies.
The Chamber released a report last year—Investors and the Markets First: Reforms to Restore Confidence in the SEC—documenting the agency’s flawed approach to rulemaking over the last four years. New SEC leadership is removing guidance that micromanages the capital markets and is gearing up to repeal numerous harmful regulations.
The SEC quickly repealed Staff Accounting Bulletin 121, guidance that was hamstringing the use of digital assets within our financial system. Notably, SAB 121 negatively impacted how U.S. banking organizations can support the deployment of digital assets.
The SEC repealed Staff Legal Bulletin 14L, guidance that made it easier for activist investors to include proposals on a company’s proxy statement on the basis that they have “broad societal impact.” The Chamber wrote to the SEC in 2024 that this guidance had led to a substantial increase in the number of shareholder proposals, especially costly and frivolous proposals focused on social policy issues unrelated to a company’s long-term performance.
The SEC also moved to end its defense of rules requiring disclosure of climate-related risks and greenhouse gas emissions, acknowledging the harm this rule would cause for public companies and our capital markets.
Banking Regulations
The administration’s leaders at the banking regulators have also wasted no time in rolling back harmful regulations that hurt Main Street lending.
The OCC and FDIC are removing references to “reputation risk” from supervisory requirements. Reputation risk has been ambiguously interpreted by banking regulators and, in some instances, used to pressure banks to close accounts of lawful businesses that are viewed as politically controversial. The Chamber supported legislation that urged regulators to make this change.
The OCC and FDIC have also repealed guidance that was hamstringing banks from engaging in crypto-related activities without first getting permission from these agencies. Regulators should provide clear rules of the road, but the FDIC’s FIL-7-2025 and OCC’s Interpretive Letter 1183 required banks to ask for permission on activities related to crypto so agencies could let the requests die on the vine.
The Fed, OCC, and FDIC announced their intention to repeal a rule that micromanaged bank lending under the Community Reinvestment Act.
The FDIC is withdrawing proposals on brokered deposits, executive compensation, and corporate governance. It’s also pulling back regulation that limits banking competition.
About the author
Bill Hulse
Bill Hulse oversees the day-to-day efforts of the U.S. Chamber of Commerce Center for Capital Markets Competitiveness (CCMC), including policy development and advocacy.
