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Economic Growth, Regulatory Relief, and Consumer Protection Act

2018

Pub. L. 115–174; codified at 12 U.S.C. §§ 5365 et seq.

📌 Link to the Text of the Act

Read the statute (12 U.S.C. §§ 5365 et seq.)

📌 Why It Was Done

Passed to amend and roll back parts of the Dodd–Frank Act (2010), the Act was intended to ease regulatory burdens on small and mid-sized banks while maintaining protections for consumers and systemic risk oversight.

📌 Pre-existing Law or Constitutional Rights

Dodd–Frank imposed strict oversight on nearly all banks with assets over $50 billion. This Act raised that threshold and loosened some compliance rules, but did not alter constitutional rights.

📌 Overreach or Proper Role?

Supporters argued it provided needed relief to community banks and credit unions that were unfairly burdened by Dodd–Frank’s one-size-fits-all rules. Critics warned it weakened safeguards and could increase systemic risk, pointing to the later Silicon Valley Bank collapse (2023) as evidence.

📌 Who or What It Controls

  • •
    Banks under $250 billion in assets (exempted from certain Federal Reserve stress tests and heightened oversight)
  • •
    Community banks & credit unions (benefited from reduced regulatory requirements)
  • •
    Consumers (retained some Dodd–Frank protections, including free credit freezes and mortgage disclosures)
  • •
    Federal Reserve (retained authority over largest banks, eased rules for mid-sized ones)

📌 Key Sections / Citations

  • •
    12 U.S.C. § 5365: Raised “systemically important financial institution” (SIFI) threshold from $50B to $250B
  • •
    Mortgage provisions: Reduced compliance burdens for small lenders
  • •
    Consumer provisions: Free credit freezes, enhanced protections for veterans and homeowners

📌 Recent Changes or Live Controversies

  • •
    The 2023 regional banking crisis (including Silicon Valley Bank and Signature Bank) renewed debate over whether this Act’s deregulation contributed to instability.
  • •
    Supporters maintain it struck a balance between oversight and growth; critics push for reinstating stricter Dodd–Frank provisions.

📌 Official Sources