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‘Clarity Act’ Before the Senate Banking Committee | | The Senate Banking Committee is expected to hold a markup of H.R. 3633, the CLARITY Act, on Thursday. The text of the 309-page bill first appeared publicly on Tuesday. The bill would create a regulatory framework for cryptocurrencies and build on the GENIUS Act that passed last year. | Perhaps the most contentious issue is how the bill deals with the payment of rewards on stablecoins. Section 404 of the bill bans rewards on idle balances of stablecoins that closely resemble bank deposits by banning covered parties from paying any form of interest or yield “on a payment stablecoin balance in a manner that is economically or functionally equivalent to the payment of interest or yield on an interest-bearing bank deposit.” | However, there is a possible conflict between that provision and another also within Section 404 that allows “payments to restricted recipients of consideration, rewards, or benefits…. calculated by reference to a balance, duration, tenure, or any combination of the foregoing.” More than 100 amendments have been filed, making it unclear what changes the bill may undergo as it moves through the committee voting process. | | | | |
Warsh Confirmed as Federal Reserve Chair | Kevin Warsh was confirmed on Wednesday as the Chair of the Federal Reserve. The vote was mostly along party lines, with the exception of Senator John Fetterman (D-PA) who voted with Republicans. There were technically two votes this week – one on the presidential nomination for Warsh to be a member of the Board of Governors of the Federal Reserve for a term of 14 years from February 1, 2026, and another to confirm Warsh as chairman of the Board for a term of four years. | | Rep. Tim Moore’s Reg Relief Bill Passes House | With strong bipartisan support, H.R. 4478 – the Tailored Regulatory Updates for Supervisory Testing Act or TRUST Act – passed the House on Tuesday with a voice vote. The bill, sponsored by Rep. Tim Moore, raises the maximum asset level (from less than $3 billion to less than $6 billion) that qualifies a well-capitalized and well-managed institution for an 18-month examination cycle. Based upon our analysis of yearend 2025 data from the FDIC, up to an additional 175 banks nationally could qualify based upon their assets and before factoring in confidential composite ratings from their last exams. | | | | |
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NC Bankers Support Tackle The Tar in Rocky Mount | | North Carolina bankers will be among the community supporters participating in Rocky Mount Rotary Club’s Tackle The Tar this weekend, a 5K obstacle course that combines mud, teamwork and charitable giving. | | |
The event returns this Saturday, May 16, at the Rocky Mount Sports Complex. First Carolina Bank Chief Operating Officer Kristen Brabble, a former member of the NC Emerging Leaders Advisory Board, helped launch Tackle The Tar in 2014 after joining the Rocky Mount Rotary Club early in her career.
Since its first race, the event has awarded more than $720,000 in scholarship funds for students in Nash and Edgecombe counties attending Nash Community College, Edgecombe Community College or N.C. Wesleyan University.
Tackle The Tar features more than 20 obstacles, including mud pits, with heats for kids, first responders, competitive runners, fun runners and college students. Last year, more than 900 runners from 95 cities across six states participated.
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Across the State with North Carolina Bankers | | NCBA President & CEO Peter Gwaltney and NCBA Chairman Jim “Joe I.” Marshall, Jr. have spent recent weeks visiting with bankers across North Carolina, highlighting the strength, reach and community commitment of the state’s banking industry. | | Their visits included meetings with longtime NCBA members and community leaders at Huntington National Bank, Benchmark Community Bank, KS Bank, PNC, First Carolina Bank, First Horizon Bank, First Citizens Bank, M&F Bank, Roxboro Savings Bank and Fifth Third Bank. | | Throughout the visits, Gwaltney and Marshall connected with bank executives, board leaders and community banking teams to discuss industry developments, local growth, financial literacy, community investment and the continued importance of strong relationships among North Carolina banks. The conversations also reflected the diverse makeup of the state’s banking sector, from community banks with deep local roots to regional and national institutions making significant investments in North Carolina. | | Recent events also included branch celebrations for Huntington National Bank in Winston-Salem and Fifth Third Bank in Asheville, where local leaders, students, community members and bank teams gathered to mark new opportunities to serve North Carolina communities. | | “These visits are a reminder of how much North Carolina bankers do every day to support their customers, strengthen their communities and move our industry forward,” Gwaltney said. | | The NCBA is grateful to the bankers and community leaders who hosted these recent visits and looks forward to continuing these conversations across the state. | | | | |
Federal Legislative &
Regulatory Update⚖️ | | Streamlining Examinations | The House has passed H.R. 4437 – the Supervisory Modifications for Appropriate Risk-based Testing Act or SMART Act. The bill provides, with limited exceptions, that banks which are well-capitalized and well-managed and with assets of $6 billion or less must receive a limited-scope examination, as determined by the federal regulator, in the year following a full-scope examination. | | | In addition, upon request by the bank, the regulator must combine separate compliance examinations (e.g., safety and soundness examinations and information technology examinations) and perform them at the same time. | | | | |
SEC Proposal to Change Reporting Frequency | The SEC has proposed changes that would give public companies the option of filing semiannual reports in lieu of quarterly reports to meet their interim reporting obligations under the federal securities laws. | | | | | |
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Speaking at a roundtable held by FASB to assess the Current Expected Credit Loss (CECL) accounting standard, Federal Reserve Vice Chair for Supervision Michelle Bowman said that CECL "clearly did not improve safety and soundness" and called for a repeal, exemption or practical expedient to be available for community banks in estimating credit losses in their financial statements. | | Pictured: Michelle Bowman | | | | |
Comment Deadline Extension Sought | The NCBA has joined with other bankers associations to request that the Department of the Treasury extend a comment deadline by 60 days. At issue is a proposed rule to establish the principles under which Treasury will determine whether a state-level regulatory regime is “substantially similar” to the federal framework, as required by the GENIUS Act. | | | The letter also requests that Treasury clarify it will not penalize state regulators for filing an initial certification later than the one-year anniversary of the GENIUS Act’s effective date; or alternatively permitting them to file a status report by the one-year mark. | | | | |
Possible Future Leader of NCUA | President Trump has nominated John Crews, deputy assistant secretary for financial institutions policy at the Treasury Department, to join the National Credit Union Administration board. | The NCUA is chaired by Kyle Hauptman, but he intends to step down to become a member of the Public Company Accounting Oversight Board. | | | The move would leave Crews the only member of the normally three-person NCUA board since President Trump previously fired the board’s two Democratic members. | | | | |
FinCEN has issued an alert to help financial institutions identify and stop funding streams and procurement networks supporting Iran’s Islamic Revolutionary Guard Corps. | | | | | |
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FinCEN has updated and reissued its FAQs regarding bank customer due diligence requirements to account for an order that eased beneficial ownership reporting requirements. The revised FAQs also consolidate three sets of previously issued FAQs into one document. | | | | | |
Economic Well-Being of U.S. Households | On Wednesday, the Federal Reserve issued its Economic Well-Being of U.S. Households in 2025 report. Price increases remained the most common financial concern. The report indicates that 73 percent of adults reported either doing okay or living comfortably financially, consistent with 2024 but below the overall high of 78 percent in 2021. | | | The share who would cover a $400 emergency expense using cash or its equivalent also remained unchanged from 2024 at 63 percent. | | | | |
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ICBA Securities and The Baker Group Present the 2Q Interest Rate Risk Management Webinar on June 10 | | ICBA Securities, an Endorsed Solution of Community Bank Services, along with its endorsed broker The Baker Group, will be presenting its 2nd Quarter Interest Rate Risk Management webinar on June 10th at 11:30 ET. This is offered on a complimentary basis, and one hour of CPE credit is available. | | | | |
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NCBA Announces Partnership with Stablecore | | The North Carolina Bankers Association is pleased to announce a new partnership with Stablecore, a digital asset technology provider supporting stablecoins, tokenized deposits and other digital asset products. | | | Through the partnership, NCBA member institutions will have access to Stablecore’s platform as they evaluate emerging digital asset opportunities and consider how these tools may fit into the future of banking. | The partnership reflects NCBA’s commitment to helping North Carolina banks stay informed, prepared and competitive as customer expectations evolve and regulatory clarity develops. | NCBA and Stablecore will host a webinar in the coming weeks to introduce the platform, discuss potential use cases and outline what an implementation timeline could look like. Registration details will be shared soon. | | | | |
Need Credits? Earn CRCM, CPE, SHRM and More! | | Looking to skill up? North Carolina Bankers Association is making it easier than ever to invest in your professional growth. Sign up for one of the upcoming webinars from our partnered providers: | | | | |
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Huntington Bank Opens First Branch in Greensboro | Huntington Bank announced the opening of its first branch in Greensboro, building on its presence in North Carolina's Triad area as it continues its franchise expansion in the Carolinas. | | Located at 1401 Four Seasons Station Drive, the newly built, freestanding location marks Huntington's third full-service branch in the Triad. The branch is part of Huntington's previously announced plans to open approximately 55 branches in North Carolina and South Carolina as it brings its full franchise to the region. | | | | |
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"The quest for certainty blocks the search for meaning."
- Erich Fromm |
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