Fed capital process lawsuit, payments policy and exam relief

Better Markets sued the Fed over the notice-and-comment process for its Basel III capital proposal. The suit names Vice Chair for Supervision Michelle Bowman and alleges secret meetings with bankers and coached comments. It asks the court to withdraw the proposal and require Bowman to recuse herself from the rulemaking process.

Fed, OCC and FDIC expanded 18-month exam eligibility to banks with up to $6 billion of assets. The interim final rule raises the threshold from $3 billion to $6 billion while keeping well-managed and well-capitalized standards, and regulators estimate 188 additional institutions may qualify.

Trump renewed support for credit-card swipe-fee caps. The Wednesday-night comments were his third public endorsement of the Credit Card Competition Act. Trump has said cutting swipe fees could save the average family about $1,200 a year.

U.S. Bank tested USBDC for cross-border payment. The bank completed a payment between North America and Europe using its U.S. dollar-backed stablecoin on the Stellar blockchain. U.S. Bank plans to explore broader uses beyond cross-border payments, including liquidity management and cross-border treasury operations.