The LXR Group is a full service public policy and regulatory consulting firm based in Washington, DC.
We focus on investment, capital markets, and other financial services issues.
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We use proven strategies to help our clients navigate the legislative and regulatory landscape.
With decades of experience working on legislative and regulatory policy at the federal and state level, the LXR Group understands how to drive change and achieve desired results for our clients.
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We help clients understand and address regulatory and policy developments and trends that impact them.
LXR Group Blog
Policy & Regulatory Updates
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Analysis: Abrupt Failure of Silicon Valley Bank Threatens to Upend Federal Financial Services Policy Landscape
"One emerging vector of Democratic criticism is a 2018 law that weakened oversight of many regional banks. On Monday, for example, Rep. Ayanna Pressley (D-Mass.) called for a hearing to investigate "how Republicans’ 2018 bank deregulation bill contributed to SVB’s risky behavior and jeopardized financial stability for far too many.” Rep. Katie Porter (D-CA), who’s running for a newly open Senate seat in California, said she would introduce legislation to undo the 2018 law. Other progressives, such as Sen. Elizabeth Warren (D-MA), on Monday used the SVB fiasco to excoriate “Wall Street lobbyists and Republicans in Congress” for “pushing Fed Chair Powell for weak capital requirements at exactly the wrong time.” By Tuesday morning, Sen. Warren had sent SVB’s CEO, Gregory Becker, a letter requesting information “about your successful efforts to roll back banking regulations and exempt your bank from the protections Congress enacted with the Dodd-Frank [Act]…designed to safeguard our banking system and economy from the negligence of bank executives like yourself[.] "
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Biweekly Bulletin on Financial Services and Capital Markets Policy (S. 2, Vol. 2- Feb. 14 – March. 3, 2023)
"At its March 2 meeting, the Investor Advisory Committee (IAC) held a spirited and revealing discussion surrounding the adequacy of the SEC’s present examination program as it relates to SEC registered investment advisers. It was the first time in years that the IAC has looked at this vexing issue, and we believe it is likely that we’ll be hearing much for about it in the coming months. The IAC discussion, which followed a panel presentation entitled “Oversight of Investment Advisers: Can Regulators Keep Up with Growth in the Industry,” saw IAC members quiz SEC Examination Division Co-Director Natasha Vij Greiner about the sufficiency of the agency’s present 15% examination rate, and seven-year examination cycle."
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Analysis: Seven Key Takeaways from Today’s House Financial Services Committee Markup
"In a perhaps inevitable corollary to his self-conscious emphasis on bipartisanship, in his opening statement and throughout the markup, Rep. McHenry made clear in words and his conduct that he views the HFSC as primarily a policymaking committee rather than a political committee. “We are a legislating committee. I renew my call for every Member to bring your ideas to me–my door is open. These are not messaging bills or a markup to clear the decks. To that end, it is my expectation we will hold several markups throughout the year on serious bills.” During the course of the markup, McHenry engaged in colloquy with a half-dozen Democrats, and commitments to address issues they raised and care about, such as with respect to strengthen enforcement of GLB, and the use of bio-metric data by financial services firms."
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Senate Banking Continues to Investigate the Crypto Crash, but Next Steps Remain Unclear.
"Tuesday’s hearing was certainly a sign that SBC Chair Sherrod Brown (D-OH) is intent on enacting crypto legislation. In his opening statement, the senator made clear that he has a vision for crypto regulation that includes disclosures, prohibitions against conflicts of interest and self-dealing, customer protections, governance and risk management rules, provisions to address anti-money laundering and fraud; and government oversight. But the rest of the hearing seemed to dispel belief that such legislation is feasible as the disagreements between Senators are enormous. GOP senators are uniformly interested in only instituting regulations that would allow the crypto industry to 'innovate.'"
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Bulletin on Capital Markets & Financial Services Policy – S. 2, Vol. 1 (Jan. 16 – Feb. 10, 2023)
A capital markets package is evolving rapidly in the House. We understand this package is likely to be the based on the September 2022 GOP Capital Formation Principles document, but that Republicans are prepared to make some concessions to win Democratic support.
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Five Top Takeaways from NASAA’s New Policy Agenda for the 118th Congress
NASAA’s policy agenda calls for Congress to “protect the securities regulatory framework from additional erosion” in the face of digital assets, and instead “use the elasticity [of the securities laws and precedents] to bring new practices, products, and professionals into the framework.” This likely reflects a general skepticism by state regulators about the need for a new regulatory framework to accommodate digital assets, as well as specific opposition to aspects of bipartisan Senate Legislation authored by Senate Ag Chair Debbie Stabenow (D-Mich), and bipartisan stablecoin legislation being negotiated between HFSC Chair Patrick McHenry and Rep. Maxine Waters (D-CA).
