Us Congress House Bill HB3380

Us Congress 2025-2026 Regular Session

• Introduced: 5/14/25
• Refer: 5/14/25
• Report Pass: 5/21/25

Caption

TAILOR Act of 2025 Taking Account of Institutions with Low Operation Risk Act of 2025

Impact

The bill mandates that regulatory actions be adapted to the type and risk level of each financial institution. This is intended to foster a more supportive regulatory environment, particularly for smaller institutions such as community banks, which may face disproportionate challenges from one-size-fits-all regulations. By allowing for a more nuanced approach to regulation, the bill aims to optimize regulatory impact and reinforce the stability of the financial sector.

Summary

House Bill 3380, known as the Taking Account of Institutions with Low Operation Risk Act of 2025 (or TAILOR Act), aims to require federal financial institutions regulatory agencies to consider the risk profiles and business models of financial institutions when making regulatory decisions. This initiative strives to tailor regulation in a way that minimizes unnecessary burdens on institutions with lower operational risks, thereby enhancing their ability to serve customers and local markets effectively.

Contention

Despite its potential advantages, HB 3380 faces criticism from those who argue it may dilute important regulatory safeguards designed to prevent riskier practices in the banking sector. Opponents express concern that tailoring regulations too closely to individual business models could encourage excessive risk-taking among financial institutions, ultimately threatening broader economic stability. Supporters, however, contend that the current regulatory framework is overly burdensome for institutions that present little risk to the financial system, necessitating reform for better efficiency and responsiveness.