Brussels — The EU-U.S. Joint Financial Regulatory Forum took place on 24-25 June 2025, with participants exchanging views on topics of mutual interest as part of their regular financial regulatory dialogue. The dialogue was co-chaired by the European Commission and the U.S. Department of the Treasury.
EU participants included representatives of the European Commission, European Central Bank (ECB), European Banking Authority (EBA), European Securities and Markets Authority (ESMA), European Insurance and Occupational Pensions Authority (EIOPA), and Single Resolution Board (SRB).
U.S. participants included representatives from the U.S. Department of the Treasury, Federal Reserve Board (FRB), Commodity Futures Trading Commission (CFTC), Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), and Securities and Exchange Commission (SEC).
The Forum emphasized close, ongoing EU and U.S. engagement in a range of areas and focused on seven themes: (1) market developments and financial stability; (2) digital finance and payments; (3) sustainability-related financial items; (4) the EU Savings and Investments Union; (5) banking and insurance; (6) anti-money laundering and countering the financing of terrorism (AML/CFT), and (7) capital markets. Agency participation varied across themes, with representatives expressing views on issues in their respective areas of responsibility.
Participants started the conversation by focusing on financial stability and market developments. Globally, while inflation has continued to moderate and global growth is expected to hold steady, downside risks to the economic outlook continue to persist. Concerns remain around asset valuations, which remain elevated relative to fundamentals across several asset classes. Participants highlighted the importance of implementing robust prudential regulatory frameworks and supervisory practices as well as effective macroprudential policies. Continued international dialogue remains important for discussing appropriate and comparable regulatory standards, monitoring vulnerabilities, enhancing the resilience of the financial system and its ability to withstand shocks, while preserving the level playing field and ensuring that regulation is not unduly burdensome.
Participants continued their exchange of views on digital finance matters. EU participants provided an update on the implementation of the Markets in Crypto-Assets (MiCA) Regulation, and underscored the importance of the Financial Stability Board’s work on issues related to crypto assets, including stablecoins and wider crypto-related activities and markets. EU participants also shared considerations for the ongoing development of the Digital Euro. U.S. participants provided an update on the U.S. digital asset policy priorities and ongoing work in relation to crypto assets, including the SEC Crypto Task Force. Participants also discussed work underway to enhance cross-border payments, including under the G20 Roadmap for Enhancing Cross-Border Payments. Participants continued their exchange of views on the use of artificial intelligence in financial services and updated each other on recent developments. EU participants provided an update on the current implementation work under the Digital Operational Resilience Act (DORA). U.S. participants shared updates on cybersecurity and critical infrastructure.
Both sides exchanged notes on the recent developments in the field of anti-money laundering and combatting the financing of terrorism. EU participants provided an update on work to implement the Anti-Money Laundering Package and the EU supervisory framework now that the Anti-Money Laundering Authority has been established. U.S. participants provided an update on recent regulatory developments in relation to the implementation of the Anti-Money Laundering Act of 2020, including the Corporate Transparency Act.
EU participants presented the strategy for the EU Savings and Investments Union initiative, highlighting its function to play as a key enabler of wider efforts to boost competitiveness of the EU economy.
An exchange followed to provide updates on EU and U.S. regulatory developments in relation to banks. Both sides gave an overview on the state of play of their respective rulemakings and regulatory frameworks which would implement the final set of Basel III reforms. Participants highlighted the importance of strong and consistent regulatory prudential frameworks and effective supervision, in particular for internationally active banks, to enhance the stability of the financial system. Participants noted the importance of assessing the functioning of the regulatory capital framework and promoting a level playing field across jurisdictions. Participants also exchanged views on other bank regulatory issues, such as the leverage ratio, banks’ capital buffers and supervisory approach. U.S. participants emphasized the principles that U.S. bank regulation and supervision should be grounded in clear statutory mandates, efficient, tailored, and strike an appropriate balance between costs and benefits. Participants then informed each other of the latest developments in banking resolution and deposit insurance matters. EU participants updated about the state of negotiations of the crisis management and deposit insurance framework. U.S. participants provided an update on upcoming reviews of resolution plans submitted by insured depository institutions and by bank holding companies, as well as the U.S. approach to deposit insurance and the brokered deposits rule. This was followed by an exchange on the interactions between U.S. securities laws and open bank bail-in operationalization, where participants took stock of continued engagement since the last Forum, emphasizing the importance of effective resolution frameworks in a cross-border context. Participants also exchanged views on a variety of insurance-related matters, including continuing prior discussions in relation to reinsurance capacities for natural catastrophe coverage, and the role that private equity and asset managers could play in diversifying insurance portfolios. They also discussed insurance recovery and resolution-related matters.
Participants then discussed sustainability-related financial items, focusing on simplification and regulatory burden reduction.
On capital markets, EU participants provided an update on work on the shortening of the settlement cycle in the European Union. The SEC shared observations and provided an update one year from the U.S. migration to T+1. The SEC provided also an update on their rules on clearing U.S. Treasuries. Discussions continued with an exchange on developments in the fund sector and scope for reforms. EU participants provided an update on their macroprudential review in the Non-Bank Financial Institution space.
Participants acknowledged the importance of the Forum in fostering ongoing financial regulatory dialogue between the United States and the European Union and will continue to discuss the scope of the potential implications of respective policies and laws in each other’s jurisdictions, including extraterritorial concerns. They further acknowledged that regular communication on regulatory and supervisory issues of mutual concern is important to support financial stability, investor protection, market integrity, and a level playing field.
Participants will continue to engage on these topics, as well as on other topics of mutual interest, ahead of the next Forum meeting anticipated in late 2025.