Economic Growth, Regulatory Relief, and Consumer Protection Act

Economic Growth, Regulatory Relief, and Consumer Protection Act (2018)

1) Link to the Text of the Act
Read the statute (12 U.S.C. §§ 5365 et seq.)

2) 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.

3) 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.

4) 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.

5) 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)

6) 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

7) 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.

8) Official Sources