State of the Fed and Rulemakings at the SEC
April 21, 2026
A growing coalition of Senate Republicans is urging the Department of Justice (DOJ) to end its investigation into Federal Reserve Chair Jerome Powell, warning that the probe is blocking Trump's own economic agenda and putting his Fed nominee in limbo.
- Trump escalated his threats against Powell this week, saying he will fire him if Powell doesn't leave "on time" when his term as Fed chair expires on May 15.
- Firing Powell, however, could trigger a prolonged legal battle, similar to his attempt to remove Fed board member Lisa Cook, a case currently before the Supreme Court.
As reported by Politico, last week senior Republicans suggested that the DOJ end its investigation.
- Senate Majority Leader John Thune shared that "it's in everybody's best interest to wrap up the investigation."
- House Financial Services Chair French Hill stated that the probe "delays the implementation of the president's economic policy."
State of play: The Justice Department’s investigation centers on whether Powell misrepresented cost overruns on a Fed headquarters renovation. A federal judge revoked the DOJ subpoenas, calling them a "pretext" to pressure the Fed on interest rates.
Trump Fed Chair nominee Kevin Warsh’s confirmation hearing before the Banking Committee is set for today, April 21, but Sen. Thom Tillis (R-N.C.) has vowed to block the confirmation until the DOJ drops the investigation.
- Republicans and Democrats have 13 and 11 members, respectively, on the Banking Committee. If all Democrats and Tillis vote against Warsh's confirmation, his nomination will fail to advance to the full Senate.
Furthermore, Powell is said to be increasingly open to staying on as a Fed governor past May, a term that runs through 2028, the more Trump threatens him legally.
- As reported by another Politico article, Powell remaining on the Fed board could open up “a sticky legal conversation about whether Powell should continue as chair pro tem, or whether…the president should be allowed to pick from among the Fed board members.”
Meanwhile the Securities and Exchange Commission (SEC), as reported by CREFC’s Policy & Capital Markets Briefing last week, has undertaken a significant regulatory pivot.
However, Bloomberg reports three headwinds continue to slow the agency down:
- Six-week government shutdown that halted SEC operations;
- 18% staff reduction from federal workforce cuts; and
- New Trump-era requirement requiring independent agencies to obtain White House sign-off before proposing major rules.
The SEC is leaning on informal advisories and no-action letters to move quickly, but those can be reversed easily by the next administration.
Yes, but: Atkins says 30 or so rule proposals will be issued this year, with more than two-thirds focused on corporate finance. With midterms around the corner and rulemaking typically taking 18 months to two years, some market participants are concerned the window to lock in durable policy is narrowing fast.
In terms of topics relevant to the CRE finance space, CREFC is pleased to be able to respond to and work with the SEC on the:
- ABS Concept Release: Focused primarily on the RMBS market, this release invited industry input on any regulatory requirements related to the securitization markets as a whole. CREFC submitted a comment letter in December 2025 and followed up with a call with the SEC's Office of Structured Finance (OSF). CREFC is now preparing a second letter in response to direct questions from OSF staff.
- Rule 15c2-11: Issued in response to years of advocacy from CREFC and other market participants, the SEC has proposed to clarify that Rule 15c2-11, which governs dealer quoting in the equity markets, does not apply to fixed-income securities.
- Rule 17g-5: CREFC, joined by MBA and SIFMA, filed a formal Petition for Rulemaking with the SEC to update Rule 17g-5, which governs credit rating agency access to deal information.
Contact
Sairah Burki
Managing Director,
Head of Regulatory Affairs
703.201.4294
sburki@crefc.orgThe information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2026 CRE Finance Council. All rights reserved.