Steil Statement on Proposed Changes to Volcker Rule

February 4, 2020
Press Release

WASHINGTON, D.C.—Today, House Financial Services Committee member, Congressman Bryan Steil (WI-01), released a statement regarding the SEC, Federal Reserve, OCC, FDIC, and CFTC’s proposed changes to the Volcker Rule.

“The proposed changes to the Volcker Rule positively impact Wisconsin entrepreneurs and workers by encouraging more investment in innovation. Under the current rules, venture capital investment is overwhelmingly focused in a handful of coastal cities. The revisions will drive more investment to the Midwest. I will continue working to spur economic growth.”

On background:

In December, Steil led a multi-office effort to urge Secretary of the Treasury Steve Mnuchin, the Comptroller of the Currency Joseph Otting, Chairman of the Federal Reserve Jerome Powell, Chair of the Federal Deposit Insurance Corporation Jelena McWilliams, Chairman of the Securities and Exchange Commission Jay Clayton, and Chairman of the Commodity Futures Trading Commission Heath Tarbert to revise the current definition of a covered fund.

Prior to the implementation of the Volcker Rule, banks supplied a significant amount of capital to venture and growth funds for startup companies. However, due to the overly broad definition of a covered fund under the Volcker Rule, which included venture capital and other long-term funds, many businesses in Wisconsin and throughout the Midwest found it more difficult to attract investment.

You can read a copy of the letter here.

Steil is a member of the following House Financial Services Committee subcommittees: Investor Protection, Entrepreneurship, and Capital Markets; Housing, Community Development, and Insurance; and Diversity and Inclusion. Steil is also a member of the Financial Services Committee Task Force on Financial Technology.