The United States Treasury and top financial regulators have proposed new rules to make it easier for the Federal Reserve to designate nonbank financial institutions as systemically important, allowing for easier supervision and regulation. Nonbank financial institutions, which include venture capital firms, crypto companies, and hedge funds, currently lack supervision and are not insured by the Federal Deposit Insurance Corporation. The new guidance will replace 2019-era rules with an analysis process that determines if "material financial distress at the company or the company's activities could pose a threat to U.S. financial stability." Treasury Secretary Janet Yellen cited the recent banking crisis as a reason for greater oversight and emergency provisions to be granted to the Financial Stability Oversight Council and the Fed.

(By TOM MITCHELHILL)