Janet Yellen Secretary of the Treasury | Twitter Website
Brussels — The EU–U.S. Joint Financial Regulatory Forum convened on June 25-26, 2024, with participants discussing various topics of mutual interest as part of their regular financial regulatory dialogue. The European Commission and the U.S. Department of the Treasury hosted the dialogue.
EU representatives included members from the European Commission, the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA), the European Insurance and Occupational Pensions Authority (EIOPA), the European Central Bank (ECB), and the Single Resolution Board (SRB). U.S. participants comprised representatives from the U.S. Department of the Treasury and staff from independent regulatory agencies such as the Federal Reserve Board (FRB), Commodity Futures Trading Commission (CFTC), Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), Securities and Exchange Commission (SEC), and Consumer Financial Protection Bureau (CFPB).
The Forum underscored ongoing EU-U.S. cooperation across several areas, focusing on six main themes: market developments and financial stability; regulatory developments in banking and insurance; anti-money laundering and countering financing of terrorism; sustainable finance; regulatory and supervisory cooperation in capital markets; and operational resilience and digital finance.
Participants began by addressing financial stability and regulation/supervision issues. Despite moderating inflation globally, downside risks to economic outlook persist amid heightened geopolitical tensions. Although financial stability risks have lessened since early this year, concerns remain about rapid asset repricing events across asset classes, commercial real estate market developments, and higher interest rates' economic impact.
An exchange followed on updates regarding U.S. and EU bank regulatory proposals, including strengthening capital requirements and resolution frameworks. U.S. federal banking regulators provided an overview of their rulemakings to implement Basel III reforms, while European participants updated on implementing the EU’s Banking Package.
Discussions also covered insurance-related matters such as recovery, resolution, macroprudential developments, catastrophic cyber risks, climate-related financial risk assessment tools, anti-money laundering efforts, sustainable finance initiatives, capital markets settlement cycles shortening to T+1 in the U.S., fund reforms addressing non-bank financial intermediary sector vulnerabilities, artificial intelligence use in financial services regulation implications, financial data sharing proposals like FIDA by EC and CFPB's Personal Financial Data Rights rulemaking.
The Forum concluded with discussions on operational resilience concerning crypto-assets regulations under DORA by Europe’s side updates on MiCA Regulation implementation work alongside Treasury-FRB Critical Providers Dialogue updates shared by U.S., emphasizing continued international cooperation at FSB level towards stablecoins issues coordination within international payments agenda scope ensuring a level playing field supporting investor protection market integrity.
Participants acknowledged fostering ongoing dialogue between both jurisdictions' respective policies laws potential implications ahead next Forum meeting engagement continuation other mutual interest topics.
