Treasury Secretary Scott Bessent today reiterated the Trump administration’s push for regulatory tailoring during a sometimes contentious congressional hearing that touched on several issues, from stablecoin regulation to community development financial institutions.
Bessent appeared before the House Financial Services Committee to give the annual report of the Financial Stability Oversight Council. He often sparred with committee Democrats over administration policy. But he also emphasized the administration’s deregulatory push, which he argued would help community banks by easing the compliance burden on the institutions.
“Under the regulatory straitjacket that emerged, that pushed lending outside the traditional banking system, small banks became too small to succeed,” Bessent said. “I think that we have to tailor to the risk for people who know their communities, who are concentrated geographically.”
As for other issues, Bessent was asked by Rep. Joyce Beatty (D-Ohio) about why the Community Development Financial Institution Fund had yet to allocate most of the 2025 program funds. Bessent declined to answer after Beatty sought a yes or no response to her question, but the Treasury Department in December announced increased oversight of CDFI Fund awards.
Bessent said regulators are moving with “deliberate speed” to implement a regulatory framework for stablecoins, as required by passage of the Genius Act. He was also asked by Rep. Jim Hines (D-Conn.) about President Trump’s endorsement of a one-year, 10% cap on credit card interest rates, specifically whether a cap would harm subprime borrowers.
“That would be very important to examine as it is being put in,” Bessent said about the cap.
