WASHINGTON–U.S. Treasury Secretary Scott Bessent is continuing his push for a rollback in bank regulations, including abandoning the Biden-era proposal for dual capital requirements for banks. 

Speaking at a Federal Reserve regulatory conference, Bessent warned that excessive capital rules were “choking lending,” stifling growth, and shifting credit to the non-bank sector, Reuters reported.

During his remarks, the report said Bessent criticized the 2023 dual-capital framework, introduced after the failures of Silicon Valley Bank and other institutions, saying it lacked a principled risk assessment and instead sought to “reverse-engineer higher and higher capital aggregates.” 

‘Antiquated’ Requirements

The Treasury secretary further argued the proposal would have preserved “antiquated capital requirements” and undermined modernization efforts, Reuters reported.

“We need deeper reforms rooted in a long-term blueprint for innovation, financial stability, and resilient growth,” Bessent stated, according to the report.

As the CU Daily has reported, the Trump administration is pushing a broader deregulatory agenda—including at NCUA—and has sought to scale back numerous rules.

Bessent additionally called for capital relief for community banks, and suggested a voluntary opt-in system for modernized requirements. “Rationalizing and tailoring regulation does not have to amount to regulatory weakening,” he added, emphasizing that reforms would prioritize both growth and stability, Reuters said.As the CU Daily has also reported, America’s Credit Unions has called on NCUA to match any rollbacks of rules for banks to create parity for credit unions.