| | | | |  | | By Jasper Goodman | Presented by CareCredit, a Synchrony Solution | Editor’s note: Morning Money is a free version of POLITICO Pro Financial Services morning newsletter, which is delivered to our subscribers each morning at 5:15 a.m. The POLITICO Pro platform combines the news you need with tools you can use to take action on the day’s biggest stories. Act on the news with POLITICO Pro.
| | A public lobbying campaign by Silicon Valley titans is breathing new life into a Republican bank regulatory priority that is poised for a major comeback during the second Trump administration. Republicans are gearing up to revive a push for federal “fair access” regulations that would prescribe when banks can decline to serve certain customers. Banking regulators pursued a fair access rule at the very end of the first Trump administration in a bid to ensure that politically controversial businesses such as gun manufacturers and fossil fuel companies couldn’t be blocked from accessing banking services. But the effort was killed soon after President Joe Biden took office amid opposition from banks and progressive groups, which said the proposal would force lenders to do business with risky companies and was legally unsound. Now, key players in the cryptocurrency industry and Silicon Valley are helping to revive the issue — and uncovering new bipartisan interest in it. Venture capitalist Marc Andreessen, whose firm invests in crypto startups, said last week on “The Joe Rogan Experience” that some tech founders have been cut off from banking services due to actions by Biden-appointed regulators. Those remarks went viral, igniting complaints by participants in the digital asset space about what they describe as attempts to “de-bank” the industry. They say pressure from regulators has prompted lenders to avoid doing business with crypto firms. The issue has caught the eye of lawmakers on Capitol Hill and advisers to President-elect Donald Trump, including Elon Musk, raising the prospect that it could become a priority next year. “I don’t see how this doesn’t get addressed right away — as literally a January priority, not like a 100 days priority,” said Brian Brooks, who spearheaded the attempt to enact a fair access rule while serving as acting Comptroller of the Currency during the first Trump term. “The combination of Elon’s energy and Marc Andreessen’s” viral comments has added momentum to the campaign, he said. Two new twists are poised to change the dynamic this time around. First, the issue is drawing new interest from Democrats. Pro-crypto lawmakers on the left — including Reps. Ritchie Torres of New York and Wiley Nickel of North Carolina — have backed up Andreessen’s complaints on social media in recent days, signaling support for an effort to prevent regulators from pressing banks to deny services to some customers. And Rep. Maxine Waters of California, the top Democrat on the House Financial Services Committee, suggested that she could find common ground in this area with Republicans in an interview with our Eleanor Mueller prior to the election. Waters said she doesn’t “believe that an American citizen should have their bank accounts closed down, and nobody tells them why, or you have nowhere to appeal.” Second, the move could also draw support from another surprising corner: the banking industry itself. Banks opposed the OCC’s fair access rule during the last Trump term, but a raft of new state laws seeking to discourage the lenders from cutting ties with certain customers for political or social reasons could change the calculus. Rep. Andy Barr, a Kentucky Republican who’s running to lead the Financial Services panel and has championed fair access legislation, said earlier this year that banks are warming up to setting a federal standard on the issue. Barr has partnered with Sen. Kevin Cramer (R-N.D.) on legislation that has support from several key players in the Senate, including incoming Banking Chair Tim Scott (R-S.C.) and Vice President-elect JD Vance. But despite the unexpected support from some new corners, crypto skeptics remain critical of the push. Dennis Kelleher, CEO of the financial watchdog group Better Markets, called the complaints from Andreessen and the crypto industry “typical baseless billionaire claims.” “If legislation is going to be considered, it should have a very thorough hearing that focuses on — and finds — a fact-based reason, not a political argument, … that a law is necessary,” he said. “Because a law on fair access can be used against the banking and financial industry in a way that will not only harm investors and markets, but undermine financial stability.” IT’S WEDNESDAY — Send Capitol Hill tips to jgoodman@politico.com. And as always, find Sam at ssutton@politico.com.
| | | | A message from CareCredit: Health and wellness care can be expensive even with insurance. But healthcare expenses don’t need to be budget busting. Financial options, such as CareCredit, help people pay for health and wellness care over time. They also provide flexibility, with utility across a range of products and treatments including hearing aids, cosmetic procedures, Lasik eye surgery and even veterinary care for pets. To learn more, visit CareCredit’s WellU website: https://www.carecredit.com/well-u/ | | | | | Bessent hits the Hill — Scott Bessent, Trump’s pick to lead the Treasury Department, is holding meetings on Capitol Hill this week with Senate Republicans as his confirmation process begins, our Michael Stratford reports. Bessent is slated to meet with incoming Senate Majority Leader John Thune and Sen. John Barrasso, who is set to become the No. 2 Republican, according to Raj Shah, a Trump transition spokesperson. Sen. Mike Crapo, who’s poised to lead the Finance Committee that will consider Bessent’s nomination, told our Gavin Bade he wants to meet with the longtime hedge fund manager, possibly as soon as this week. Other GOP senators on the committee said they’re scheduling meetings with Bessent and see a clear path ahead for his nomination. Bessent, who’s selection was cheered by many on Wall Street, has stood apart from Trump’s other Cabinet picks that are generating controversy over their qualifications or personal backgrounds. Sen. Thom Tillis (R-N.C.) said he’s looking forward to meeting with Bessent but already knows he’ll support his nomination and expects he’ll garner broad support. “I know enough about his background,” Tillis said. “He’ll be a good influence in the role.” Sen. James Lankford (R-Okla.) said he’s looking forward to a planned face-to-face meeting with Bessent soon. “I don’t see any opposition to his nomination so far,” said Sen. John Cornyn (R-Texas), adding that he was planning to meet with Bessent at some point. “Certainly before I vote on any of the nominees, I want to have a chance to talk to them individually.” Democrats are keeping their powder relatively dry. Sen. Ron Wyden, the chair of the Finance Committee, and Sen. Elizabeth Warren, who will lead Democrats on the Banking Committee, criticized Bessent’s Wall Street ties and role as a wealthy political donor when he was announced. But they haven’t said they’ll vote against him. “I’m just trying to learn about him,” Sen. Michael Bennet (D-Colo.), a member of the Finance Committee, said Tuesday. Lighthizer ‘frozen out’ — A new piece from our Gavin Bade, Adam Behsudi and Ari Hawkins delivers ”a bitter blow” to trade protectionists: Robert Lighthizer, the former U.S. trade chief, is unlikely to rejoin the Trump administration in an official capacity, say five people with knowledge of his plans and personnel conversations within the presidential transition. They write that “Lighthizer was the architect of Trump’s paradigm-shifting first term trade agenda, slapping tariffs on China and strategic industries like steel and aluminum, and a key adviser to his 2024 campaign. But Trump passed over his former trade representative for the two Cabinet posts he most wanted— Treasury or Commerce secretary. And Lighthizer has told people he is unlikely to accept a lesser job, such as a potential "trade czar" role, say the people, who were granted anonymity to share details of confidential discussions.” Shots fired outside Yellen’s home — A Secret Service agent opened fire after a confrontation with people trying to break into cars outside the Washington home of Treasury Secretary Janet Yellen Tuesday morning, an agency spokesperson told Michael. There is “no evidence to indicate anyone was struck” by the gunfire during the incident, Secret Service communications chief Anthony Guglielmi said in a statement. He said there “was no threat to any protectees during this incident and no protectees were harmed.”
| | | | Billions in spending. Critical foreign aid. Immigration reform. The final weeks of 2024 could bring major policy changes. Inside Congress provides daily insights into how Congressional leaders are navigating these high-stakes issues. Subscribe today. | | | | | | | | Budd won't revive Senate Banking bid — North Carolina Republican Sen. Ted Budd says he won't again angle for a waiver that would allow him to serve on Senate Banking alongside fellow North Carolina Republican Thom Tillis, Eleanor Mueller reports. That's "not my effort right now," Budd, who unsuccessfully lobbied for a waiver this Congress, said in an interview Tuesday. "I think Senator Tillis is doing a great job."
| | | | A message from CareCredit:   | | | Progressive groups call on Dems to advance pending noms — A coalition of progressive groups wrote to Senate Democrats on Tuesday to “emphasize the urgency of confirming pending nominees for financial regulators and other independent agencies” during the lame-duck session. In a letter to Senate Majority Leader Chuck Schumer (D-N.Y.), a coalition of 50 groups including Americans for Financial Reform and Public Citizen wrote that “crucial positions include Commissioner roles at the SEC and CFTC with designated slots for minority party commissioners, as well as a Board member position at the National Labor Relations Board and a commissioner position at the Financial Stability Oversight Council.”
| | | | Write your own chapter in the new Washington. From the Lame Duck Congress Series to New Administration insights, POLITICO Pro delivers intelligence across 22+ policy areas to help you anticipate and navigate change. Discover how a Pro subscription empowers you. Learn more today. | | | | | | | | Flood insurance watch — Louisiana Republican Rep. Garret Graves is emerging as a candidate to run the Federal Emergency Management Agency in the Trump administration, per Thomas Frank of E&E News. Graves has “been a leading critic of a FEMA program that has resulted in millions of people, including many in his district, facing higher premiums for federal flood insurance. Under the moniker Risk Rating 2.0, FEMA restructured its insurance rates so premiums reflect the flood risk of each property more accurately — a move cheered by environmentalists and many Republicans.”
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Visit CareCredit’s WellU website, which offers financial health articles and information about options to save and pay for out-of-pocket healthcare costs https://www.carecredit.com/well-u/ | | | | | | | Follow us on Twitter | | | | Follow us | | | | |
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