Capitol Account

The Gaming Industry's Top D.C. Advocate Has a Few Thoughts on Prediction Markets and the CFTC

Robert Schmidt — Fri, 12 Jun 2026 23:04:03 GMT

Sponsored by MFA, the trade association for the global alternative asset management industry.

Friday Q and A: Thanks to CFTC Chairman Mike Selig, prediction market companies have been on a winning streak in Washington. The commodities regulator has gone to great lengths to back their expansion into the gambling business, even suing states that objected. …

'A Grave Misstep': SEC Moves to Rescind Trade-Through Rule

Robert Schmidt — Thu, 11 Jun 2026 23:29:06 GMT

Sponsored by MFA, the trade association for the global alternative asset management industry.

“This is a long time coming,” Paul Atkins observed contentedly, moments after he and his fellow Republican commissioners approved a proposal that would scrap the SEC’s trade-through rule. The occasion even merited the agency’s first open meeting of the year, giv…

CFTC Event Contract Proposal Places Few Limits on Sports Bets

Robert Schmidt — Wed, 10 Jun 2026 23:43:08 GMT

Sponsored by MFA, the trade association for the global alternative asset management industry.

CFTC Chairman Mike Selig’s first rule proposal on event contracts looks every bit as rosy for the upstart industry as many observers expected – or feared. It would clear the way for most types of sports bets on prediction markets while barring controversial wage…

Businesses Seek Permanent Regulatory Fixes at Chamber Summit

Robert Schmidt — Tue, 09 Jun 2026 23:37:09 GMT

Sponsored by MFA, the trade association for the global alternative asset management industry.

The corporate executives gathered at the U.S. Chamber of Commerce’s annual capital markets summit today were clearly happy about the regulatory U-turn that is underway in Washington. But with the second year of the Trump administration nearly halfway over and th…

Index Fund Voting Power Faces Fresh Scrutiny at SEC

Robert Schmidt — Mon, 08 Jun 2026 23:36:31 GMT

Sponsored by MFA, the trade association for the global alternative asset management industry.

The largest asset management firms have mostly fended off Republicans’ accusations that they push companies to enact “woke” environmental, social and governance policies. But as the controversy has faded from the headlines, Washington policy makers’ interest has…

New York's Top Financial Overseer Talks Fintech, Stablecoins and the CFPB Exodus

Robert Schmidt — Fri, 05 Jun 2026 23:13:51 GMT

Sponsored by the Financial Services Forum. Championing a strong financial system to unleash America’s prosperity.

Friday Q and A: Today, Capitol Account interviewed the new superintendent of the New York Department of Financial Services at a conference hosted by Open Banker in Washington. Kaitlin Asrow was appointed on an acting basis last fall and immed…

Trump's Bank Overseers Glide Through House Hearing

Robert Schmidt — Thu, 04 Jun 2026 23:58:22 GMT

Sponsored by the Financial Services Forum. Championing a strong financial system to unleash America’s prosperity.

Donald Trump’s banking regulators have faced little resistance pushing through core pieces of their agenda: cutting capital requirements, loosening supervision and freeing up traditional lenders to expand their footprints. After three hours o…

'Regulatory Innovation to Drive Economic Innovation'

Robert Schmidt — Thu, 04 Jun 2026 14:31:13 GMT

This morning, we’re sending you an opinion article from the sponsors of the newsletter this week. The op-ed was written by Sean Campbell, chief economist and head of policy research at the Financial Services Forum. He argues that regulators, just like companies, need to be at the forefront of innovation – otherwise the U.S. economy could be held back by rules “stuck in the past.” Campbell singles out the treatment of digital assets as an area where banking overseers need to “urgently adapt” to the modern era.

Regulatory Innovation to Drive Economic Innovation

By Sean Campbell

All human endeavors – science, music, art and sport – advance by pushing the boundaries of knowledge and improving on the past. Institutions that refuse to change and grow, often stagnate, wither in obscurity and are ultimately replaced by institutions that embrace the universal truth: change is the only constant.

The regulatory sphere is no different. A regulatory structure that innovates in response to lessons learned from the past and changing realities will always outperform a static, staid and bureaucratic system that clings to the past with its eyes shut to the future. Importantly, the willingness and ability of regulators to innovate and modernize has positive implications for our economy. Regulation should promote a safe and sound economy that harnesses all of its productive power to drive forward, innovate and grow. To do that, the regulatory system must also continually innovate and grow to ensure that the economy is not held back by rules that are stuck in the past.

Today, bank regulators are fully engaged in an important effort to modernize the regulatory framework for large banks. This work is critical to the U.S. economy because the existing large bank regulatory framework, especially as it relates to capital, liquidity and supervision, has not been materially updated in over fifteen years. Modernizing the rules to reflect real-world impact will help banks better serve businesses, households and communities across the country. Innovating and improving our regulatory system is critical because it improves our economy’s capacity to grow and thrive.

One area where bank regulation must urgently adapt to the modern era is the treatment of digital assets. The global economy is witnessing a cycle of rapid innovation in the digital asset arena. The digital asset story is still being written, but one thing is clear – bank regulation is lagging behind the speed of innovation and adoption of digital assets. While non-banks grow, innovate and continue to gain both market and mindshare in the digital asset ecosystem, bank regulation continues to be stuck in the pre-digital asset world. As a specific example, bank regulators have yet to issue clear capital rules for bank holdings of digital assets or clear rules on which types of digital assets a bank is permitted to hold.

Large banks are a hugely consequential source of financial innovation. Many of the financial innovations that people rely on every day, including ATMs, automatic bill pay and online banking and budgeting tools, were developed in the banking sector. An outdated regulatory framework that limits U.S. banks’ ability to engage in the digital asset space will only limit the American economy’s ability to innovate and compete on the global stage of digital assets. Regulators should continue to work to find a smart and sound approach to digital assets so that U.S. banks can leverage their significant financial and technological expertise in this emerging area and provide strong consumer protections. Finally, it should be noted that sluggish adoption of smart digital asset rules for banks creates financial stability risks as most digital asset activity happens outside the highly regulated banking system. Giving banks the opportunity to better innovate in the digital asset arena is a twofer – product offerings will improve and financial stability risks will be reduced.

Just as human progress depends on adapting and building on our past, our financial system must evolve to keep pace. Today’s effort by bank regulators to modernize the bank regulatory system should be applauded and furthered. Smart regulation that meets the moment of today is a pre-condition for a sound, vibrant and growing economy that competes and wins globally.

Sponsored content from the Financial Services Forum. Championing a strong financial system to unleash America’s prosperity.

'Extremely Dangerous.' Critics Make Their Case Against DOL's Alternative Assets Rule

Robert Schmidt — Wed, 03 Jun 2026 23:39:37 GMT

Sponsored by the Financial Services Forum. Championing a strong financial system to unleash America’s prosperity.

Opponents of the Labor Department’s proposal to pave the way for alternative assets in 401(k) plans know they face an uphill battle in making their case to the industry-friendly Trump administration. But that hasn’t stopped them from speaking…

Financial Firms Want Tweaks but Are Happy With DOL Alternative Assets Rule

Robert Schmidt — Tue, 02 Jun 2026 23:29:46 GMT

Sponsored by the Financial Services Forum. Championing a strong financial system to unleash America’s prosperity.

Asset managers have pushed the Department of Labor for years to open up 401(k) plans to hedge funds and private equity. Now that firms have digested the agency’s late March proposal, they have a few quibbles with the fine print. But the big p…

Banks Notch Wins in Illinois Swipe Fee Fight, as OCC Draws New Criticism

Robert Schmidt — Mon, 01 Jun 2026 23:35:37 GMT

Sponsored by the Financial Services Forum. Championing a strong financial system to unleash America’s prosperity.

The bank-retailer battle over Illinois’ law that bans swipe fees on taxes and tips may cool off a bit after state lawmakers voted today for a one-year delay of the controversial policy. But the OCC’s assertive push to influence the debate has…

Why Almost Every Fintech is Thinking About a Bank Charter

Robert Schmidt — Fri, 29 May 2026 23:24:31 GMT

Friday Q and A: Donald Trump’s regulators have rolled out the welcome mat for new entrants to the banking industry, and fintech and crypto firms are jumping at the opportunity. Both the OCC and FDIC have seen a surge of interest in specialized charters, with applications flowing in at a faster rate than any time since the 2008 financial crisis. The trend

The Big Four Accounting Firms Have Lots of Suggestions for Overhauling the PCAOB

Robert Schmidt — Thu, 28 May 2026 23:20:20 GMT

SEC Chairman Paul Atkins has made no secret of his desire to reboot the PCAOB. He’s already installed new leadership at the audit overseer and cut its budget. But the specifics of the revamp are still a work in progress, with plenty of details to be filled in. It all adds up to a rare opportunity to reshape the regulator’s work on everything from inspec…

Trump's Regulators Spark a Bank Charter Boom

Robert Schmidt — Wed, 27 May 2026 22:59:34 GMT

The Trump administration’s regulators can hardly open their mouths without touting their support for financial innovation. When it comes to start-up banks, their actions may be speaking even louder than their words.

New charter applications, which have been moribund since the 2008 crisis, are suddenly experiencing a boom thanks to interest from fintech a…

SEC Investor Advisory Panel Objects to Quarterly Reporting Change

Robert Schmidt — Tue, 26 May 2026 23:30:58 GMT

Members of the SEC’s Investor Advisory Committee are making a forceful case against the agency’s plan to allow twice-annual corporate financial reports – an early warning sign for the Donald Trump-inspired effort. A newly released draft report from the group argues that the commission shouldn’t move away from quarterly disclosures, making the case that …

New PCAOB Chief Logothetis On What's Ahead for the Audit Board

Robert Schmidt — Fri, 22 May 2026 23:36:13 GMT

[Note to readers: Capitol Account will be off Monday for Memorial Day.]

Friday Q and A: Demetrios “Jim” Logothetis took the helm of the PCAOB in February, coming out of retirement to accept what many saw as an unenviable and tricky task – remaking the audit regulator after it was targeted for elimination last year by Congress. The effort failed, but the …

It May Be Tough for Banks to Avoid Trump's Immigration Crackdown

Robert Schmidt — Thu, 21 May 2026 23:15:17 GMT

Donald Trump’s executive order pushing banks to scrutinize the citizenship of their customers was far less draconian than many in the industry feared. But lenders aren’t off the hot seat yet. There’s plenty in the document that could thrust them into the middle of the president’s broader immigration agenda, sources inside and outside the government say.

…

Senators Blast Prediction Markets -- and the CFTC

Robert Schmidt — Wed, 20 May 2026 23:34:54 GMT

A Senate Commerce subcommittee gathered this morning ostensibly to hear testimony about the integrity of sports in the wake of several high-profile gambling scandals. But lawmakers quickly set their sights on the explosion of betting on prediction markets – and bashed the upstart trading platforms on a bipartisan basis. The CFTC, the industry’s federal …

SEC Takes 'First Steps' in Atkins' Push to Boost IPOs

Robert Schmidt — Tue, 19 May 2026 23:34:05 GMT

SEC Chairman Paul Atkins has spent a year promising to “make IPOs great again.” Today he began to turn the talk into action, proposing two rules designed to make the public markets more attractive to smaller companies.

The measures, which are aimed at relaxing disclosure mandates and making it easier to raise capital, are a bit technical and less likely …

'Here We Go Again.' FSOC Designations Battle Rekindled for Fourth Time

Robert Schmidt — Mon, 18 May 2026 23:40:22 GMT

The Financial Stability Oversight Council surprised no one earlier this year when it proposed new guidance for labeling companies systemically important. But that doesn’t mean interest in the plan – which some are calling FSOC Designation, Take Four – has waned.

In fact, the latest batch of comment letters that landed at the Treasury Department over the …