US
The Federal Deposit Insurance Corporation (FDIC) Publishes its 2024 Annual Performance Plan
The FDIC published its 2024 Annual Performance Plan, which outlines its goals for 2024. The FDIC plans to continue to respond to all risks to the Deposit Insurance Fund (DIF) and to respond promptly to all insured depository institution (IDI) failures and related issues, with the goal to resolve all failed insured institutions in the manner least costly to the DIF. For 2024, it plans to update rules and regulations, promote engagement and collaboration with FDIC-insured minority institutions, and value and manage market assets of failed IDIs in a timely manner so as to maximize net return. It will also conduct investigations into all potential professional liability claim areas for all failed IDIs.
Commodity Futures Trading Commission (CFTC) Market Risk Advisory Meeting
The CFTC published remarks made within the framework of the first Market Risk Advisory Committee (MRAC) meeting of 2024 regarding the state of intermediated clearing markets, the significant reduction in the number of futures commission merchants (FCMs), and the risk management implications of the U.S. Treasury cash-futures basis trade. The CFTC addressed counterparty risk and governance, including the resilience of central counterparties. Within its Artifical Intelligence (AI) workplan, it advocated for the responsible use of AI in financial markets and CFTC-regulated markets. In addition, it discussed CFTC proposed guidance on voluntary carbon credits, disclosure, transparency and enforcement, market design and intermediation, and product design.
Canada
Office of the Superintendent of Financial Institutions (C-OSFI) Released 2024-2027 Strategic Plan and Priorities
The C-OSFI released its 2024-2027 strategic plan, which outlines integrity and security, critical functions, operational resilience, supervision, culture, data management and analytics. OSFI will prioritize supervisory skills development through robust onboarding, comprehensive technical development, mature/respected apprenticeship model and its supervisory framework. OSFI also strives to have leading-edge data management, data quality, collection, and analytical capabilities/systems, to proactively regulate. In addition, OSFI will continue to focus on operational resilience to provide critical services and support to business lines in day-to-day operations.
Global
Bank of International Settlements (BIS) Basel Committee Published Paper on Stablecoins Regulation
The Basel Committee issued a paper, “Stablecoins: Regulatory Responses to their Promise of Stability”. Stablecoins come with a promise of stability and their issuers may maintain parity relative to a referenced asset. Stablecoins pegged to a single currency, such as USD and backed by traditional financial assets have the potential to be widely used as a means of payment. While stablecoins might bring a range of benefits, they also introduce significant risks. Many jurisdiction regulatory approaches have similar key requirements for issuers that allow for stablecoins to be issued by banks, certain nonbank financial institutions and/or a new type of financial entity holding a crypto-specific license.
