“Post-financial crisis regulation is over,” a top U.S. lawmaker has declared, calling for urgent reforms to digital asset oversight, regulatory transparency, and leadership accountability at federal agencies.

Lawmaker’s Warning Signals Major Shake-up for Financial Oversight Agencies

House Financial Services Committee Chairman Patrick McHenry criticized federal regulators during a Wednesday hearing, calling for updated financial oversight and condemning the Federal Deposit Insurance Corporation (FDIC) under Chairman Martin Gruenberg. The hearing addressed oversight of President Joe Biden’s prudential banking regulators.

McHenry demanded immediate action to modernize the regulatory approach to digital assets and called for Gruenberg’s resignation, citing failures in leadership and transparency. In his remarks, McHenry declared:

The era of post-financial crisis regulation is over.

He accused regulators of ignoring emerging risks, such as interest rate vulnerabilities, while obstructing technological progress. He emphasized that the bipartisan Financial Innovation and Technology for the 21st Century Act (FIT21), which he described as “the most extensive rewrite of financial regulation since Dodd-Frank,” provides a clear path forward for regulating digital assets. The lawmaker stated:

We need new, technology-based solutions that strengthen our financial , help consumers, and make our regulators more efficient.

Turning his attention to the FDIC, McHenry sharply criticized Gruenberg’s leadership, citing a toxic workplace culture and failures in oversight that contributed to recent banking collapses. “Your failed leadership of the FDIC will result in a total overhaul of the agency in the coming years,” he said, adding that Gruenberg’s planned resignation in January was “too little, too late.” McHenry underscored the urgency of immediate changes, saying:

That’s why Republicans introduced a resolution calling for your immediate termination.

McHenry concluded with a broader condemnation of regulators’ reluctance to embrace innovation. “Your backward-looking approach to regulation has harmed our financial , innovation, and consumers,” he said, calling on regulators to collaborate with Congress to ensure policies that promote financial innovation and rebuild public trust.