Washington Policy Pulse: SEC Reporting, Government Shutdowns, and Deposit Insurance

SEC Reporting and Trump's Proposal

• 💡 President Trump called for the SEC to move from quarterly to six-month reporting via a Truth Social post.
• 📌 This idea has been previously considered by the SEC, with a request for comment issued in 2018.
• 🔍 While the Securities Exchange Act of 1934 requires quarterly reporting, there may be flexibility for the SEC to implement a six-month basis.
• 🚀 The SEC is anticipated to take action, likely through an advanced notice of proposed rulemaking in the first half of next year, potentially leading to finalization by mid-to-late 2027.
• 📊 Comments on the 2018 proposal were mixed, but a NASDAQ survey indicated 75% of businesses favored a semiannual basis.

Government Shutdown Update

• ⚠️ The probability of a government shutdown remains at 40%, with potential for it to decrease.
• 🎯 House Republicans are expected to release their continuing resolution language this week, potentially extending funding into November.
• 🚫 Two representatives have stated they will vote no on a clean CR, but one may change her mind.
• 🗓️ The Rosh Hashanah holiday next week presents a timing challenge for Congress.

Policy and Nominee Updates

• 💰 The concept of Reconciliation 2.0 is uncertain, with key figures like Chairman Jason Smith expressing doubt.
• 🏦 Dr. Myron is expected to have his vote for Fed governor tonight, with the Senate moving forward on nominees after utilizing a nuclear option to expedite the process.
• 📱 Bloomberg News reports a deal framework for TikTok is in the works with Treasury Secretary Scott Besson.
• 🇬🇧 President Trump will visit the United Kingdom this week, potentially generating more headlines.

Deposit Insurance and Banking

• 📈 A Senate Banking Committee hearing focused on deposit insurance, particularly in the wake of Silicon Valley Bank and First Republic failures.
• 🎯 Current deposit insurance is capped at $250,000 per depositor.
• 💰 Legislation is emerging to raise the limit for business payment accounts to $20 million, which would require increased contributions to the deposit insurance fund, primarily from large banks.
• 🗣️ Consensus from the hearing suggested this might not be a bad idea, though it is expected to be a long process.