The United States has proposed to strengthen the regulation of non-bank institutions that pose systemic risks, with emerging industries such as cryptocurrency being subject to scrutiny

ChainCatcher News, the U.S. top financial regulatory agency has proposed to strengthen the tools used to review non-bank companies, including modifications to the guidelines established during the Trump administration. U.S. Treasury Secretary Yellen announced a proposal from the Financial Stability Oversight Council (FSOC) that will change the way non-bank institutions are designated as systemically important. Yellen stated, "The existing guidance was issued in 2019 and set inappropriate barriers in the designation process."

She noted that such a designation process could take up to six years to complete, which is impractical and could hinder the council's ability to act on new risks to financial stability before it is too late. Yellen's remarks signify a long-awaited shift in the Biden administration's scrutiny of large non-bank institutions. Areas that may be under review include insurance companies, private equity firms, hedge funds, mutual fund companies, and emerging industries such as cryptocurrency. (Source link)