The United States plans to ease capital restrictions on banks' treasury bond trading.

BlockBeats reported on June 18 that major U.S. banking regulators plan to reduce critical capital buffer requirements for large banks by up to 1.5 percentage points. This move follows industry concerns that current regulations have constrained trading activities in the $29 trillion U.S. Treasury market.

According to sources, the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) are focusing on the so-called enhanced Supplementary Leverage Ratio (eSLR), which applies to U.S. systemically important banks such as JPMorgan Chase, Goldman Sachs, and Morgan Stanley. The new proposal aims to lower the capital requirements for bank holding companies under eSLR from the current 5% to a range of 3.5%-4.5%. Similarly, capital requirements for bank subsidiaries are expected to be reduced from 6% to the same range.

This adjustment is similar to the "customized" revisions to eSLR calculations for systemically important banks introduced during the Trump administration in 2018, though specific provisions may still be subject to modification. (Jin10)