American Financial Institution Regulatory Sovereignty and Transparency Act of 2025; American FIRST Act of 2025
Summary
The American Financial Institution Regulatory Sovereignty and Transparency Act of 2025, also known as the American FIRST Act of 2025, mandates annual reporting by Federal banking supervisory agencies (Federal Reserve, OCC, FDIC) on their interactions with global financial regulatory forums. This includes detailed descriptions of the forums' purposes, funding, organizational structure, standard-setting activities, and the positions taken by U.S. representatives.
The bill aims to increase transparency and oversight of U.S. participation in international financial regulatory bodies. It requires agencies to justify the costs and benefits of implementing international agreements and to disclose potential impacts on U.S. laws and regulations.
The Act also includes a technical correction, redesignating a section related to data standards within the Revised Statutes of the United States.
Expected Effects
The bill will increase transparency regarding the interactions between U.S. financial regulatory agencies and international bodies. This increased transparency could lead to greater accountability and potentially influence the positions taken by U.S. representatives in these forums.
It may also lead to a more critical evaluation of the costs and benefits of adopting international financial standards. The reporting requirements could place an additional administrative burden on the Federal Reserve, OCC, and FDIC.
Potential Benefits
- Increased transparency in the interactions between U.S. regulatory agencies and global financial forums.
- Greater accountability for U.S. representatives participating in international regulatory discussions.
- A more thorough evaluation of the economic impact of implementing international financial standards in the U.S.
- Potential for greater alignment of international standards with U.S. national interests.
- Enhanced congressional oversight of U.S. involvement in global financial regulation.
Most Benefited Areas:
Potential Disadvantages
- Increased administrative burden on the Federal Reserve, OCC, and FDIC due to the extensive reporting requirements.
- Potential for delays in implementing international financial standards due to the need for detailed economic impact analyses.
- Risk of politicizing technical regulatory issues through increased congressional scrutiny.
- Possible chilling effect on U.S. participation in international forums if reporting requirements are perceived as overly burdensome or intrusive.
- The focus on sovereignty could be interpreted as a move away from international cooperation, potentially harming the U.S.'s ability to influence global financial regulation.
Constitutional Alignment
The bill aligns with the Constitution's emphasis on transparency and accountability in government. Article I, Section 8 grants Congress the power to regulate commerce, which implicitly includes the power to oversee financial institutions and their interactions with international bodies. The reporting requirements could be seen as an exercise of Congress's oversight function, ensuring that regulatory agencies act in accordance with U.S. interests and laws.
However, some might argue that the bill infringes on the executive branch's authority to conduct foreign affairs. The level of detail required in the reports could potentially reveal sensitive information about U.S. negotiating positions and strategies. The bill does not appear to violate any specific constitutional provision, but its impact on the balance of power between the legislative and executive branches warrants consideration.
The bill's focus on transparency and accountability aligns with the spirit of the Constitution, promoting informed decision-making and public trust in government.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).