Proposed FSOC Guidance Could Lead to Bank-like Regulation for Asset Managers, Private Funds, and Non-bank Mortgage Companies – as well as New Federal Regulatory Frameworks for Digital Assets and Payment Activities

Patomak Global Partners LLC – The Financial Stability Oversight Council (“FSOC”) recently released for public comment two documents that could set the stage for a dramatic transformation of how the United States’ financial markets are regulated: its proposed Analytic Framework for Financial Stability Risk Identification, Assessment, and Response (the “Proposed Analytic Framework”), and its proposed interpretive guidance entitled Authority To Require Supervision and Regulation of Certain Nonbank Financial Companies (the “Proposed Non-bank Guidance”). If finalized, this proposed interpretive guidance and accompanying analytic framework will have significant implications for U.S. financial markets.