US Reg Round Up: 12/04/2025

Federal Reserve

Federal Reserve Board releases annual audited financial statements - 21 March 2025

The Federal Reserve Board has released the annual audited financial statements for the Federal Reserve System for 2024. The audit, conducted by KPMG LLP, resulted in an unqualified opinion, confirming that there were no material misstatements in accordance with applicable auditing standards. The audited financial statements include individual and combined reports for the 12 Federal Reserve Banks, the Board itself, and a limited liability company related to the Board's COVID-19 response. These statements provide detailed information on assets, liabilities, and operations as of December 31, 2024. As required by the Federal Reserve Act, the Board orders an annual independent audit of the financial statements, and KPMG also audited the internal controls over financial reporting for the Reserve Banks and the Board.

Federal Reserve Board issues enforcement actions with Frankewing Bancshares, Inc. and Bank of Hawaii - 20 March 2025

The Federal Reserve Board has announced enforcement actions against two financial institutions. Frankewing Bancshares, Inc. in Tennessee has been issued a Cease and Desist Order dated February 20, 2025. Additionally, the Bank of Hawaii has been penalized for flood insurance violations, with a civil money penalty imposed on February 24, 2025. These actions highlight ongoing regulatory oversight to ensure compliance with banking regulations

Federal Reserve Board and Federal Open Market Committee release economic projection - 20 ​March 2025

The Federal Open Market Committee (FOMC) released its Summary of Economic Projections following its meeting on March 18–19, 2025. Participants submitted their projections for real GDP growth, unemployment, and inflation from 2025 to 2027, as well as longer-run expectations. These projections were based on the available information and participants’ assessments of appropriate monetary policy, including the likely path of the federal funds rate. Longer-run projections reflect each participant's view of where economic variables would converge under a policy that promotes maximum employment and price stability, assuming no further economic shocks.

Federal Reserve issues FOMC statement - 19 March 2025

The Federal Reserve has decided to maintain the federal funds rate at 4.25%–4.5%, citing solid economic expansion, a stable labor market, and elevated inflation. The Committee remains attentive to economic uncertainties and risks to its dual mandate of maximum employment and 2% inflation. Starting in April, the Fed will slow the pace of balance sheet reduction by lowering the monthly Treasury securities redemption cap from $25 billion to $5 billion while keeping agency debt and mortgage-backed securities redemptions at $35 billion. The Fed remains committed to monitoring economic conditions and adjusting policy as needed to support economic stability.

Securities and Exchange Commission

SEC Votes to End Defense of Climate Disclosure Rules - 27 March 2025

The Securities and Exchange Commission (SEC) has voted to end its defense of climate-related disclosure rules, which required companies to report climate risks and greenhouse gas emissions. Acting Chairman Mark T. Uyeda cited concerns over the rules' cost and intrusiveness. The rules, adopted in March 2024, faced legal challenges from states and private parties, with litigation consolidated in the Eighth Circuit. The SEC had already stayed the rules pending litigation, and following the vote, it formally withdrew its defense, ceasing further legal involvement in the case.

SEC Crypto Task Force to Host Four More Roundtables - 25 March 2025

The SEC's Crypto Task Force has announced four upcoming roundtables to discuss crypto asset regulation. The topics and dates are as follows:

• April 11, 2025 - Between a Block and a Hard Place: Tailoring Regulation for Crypto Trading
• April 25, 2025 -  Know Your Custodian: Key Considerations for Crypto Custody
• May 12, 2025 - Tokenization - Moving Assets Onchain: Where TradFi and DeFi Meet
• June 6, 2025 - DeFi and the American Spirit

These events will be held at the SEC headquarters in Washington, D.C., and will be streamed live on SEC.gov.

SEC Extends Compliance Dates for Amendments to Investment Company Names Rule - 14 March 2025

The SEC has announced a six-month extension for compliance with the amended Investment Company Act “Names Rule,” which aims to prevent misleading fund names. For larger fund groups, the compliance date is now extended from December 11, 2025, to June 11, 2026, and for smaller fund groups, the date is extended from June 11, 2026, to December 11, 2026. The extension allows funds more time to implement the amendments, finalize compliance systems, and test their plans. The new compliance dates align with annual disclosure and reporting obligations to help funds minimize additional costs in meeting the rule.