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Federal and state regulators are widening the boundaries of supervision. Supervisors are welcoming new entrants and products while easing burdens on the incumbents.

Key insights:

• New chartering pathways: The Office of the Comptroller of the Currency has amended its national trust chartering rules. The Federal Deposit Insurance Corporation has adopted a two-phase deposit insurance process to shorten de novo launch timelines. Companies from outside banking are pursuing industrial loan company (ILC) charters.

• Stablecoin oversight goes federal-state: GENIUS Act implementation is shifting payment stablecoins to a federal-state framework.

• Third-party accountability: Regulators are increasing firms’ accountability toward vendors and outsourced activities.

Securities and insurance regulators, plus the Treasury Department, are examining the interconnected risk between private credit, banks, and insurers.

Key insights:

• Treasury is collecting data directly: The Treasury has requested performance data and information on private credit firms’ ties to banks and insurers.

• Defining private credit: The Securities and Exchange Commission and Commodity Futures Trading Commission have proposed amendments to private credit reporting, including proposing a new section within Form PF.

• Insurers facing deep reviews: State insurance regulators are examining valuations, reserve reductions, and the capital supporting reinsured blocks.