A key financial oversight council chaired by Treasury Secretary Janet Yellen is aiming to tighten rules on risk assessment and for nonbank companies after the high-profile Silicon Valley Bank and Signature Bank failures last month.

The Financial Stability Oversight Council is taking up two proposals: A framework for identifying and responding to financial stability risks, and new guidance for designating nonbank financial companies for regulatory supervision. 

The Silicon Valley Bank collapse sent shockwaves through the tech industry last month. Circle, for example, held $3.3 billion of its USDC stablecoin reserves at Silicon Valley Bank, which was closed by regulators amid a bank run. 

Shortly after, New York regulators closed the crypto-friendly Signature Bank. Former Rep. Barney Frank, who sits on Signature’s board, claimed that regulators targeted the bank over its ties to crypto. Regulators dispute Frank’s claim.

(by Stephanie Murray)