The Trump administration is preparing to ease capital requirements for major U.S. banks, with the Federal Reserve, Office of the Comptroller of the Currency (OCC), and Federal Deposit Insurance Corporation (FDIC) working on a proposal to reduce the supplementary leverage ratio (SLR). The SLR, introduced after the 2008 financial crisis, requires banks to maintain a minimum level of capital relative to their total assets, including U.S. Treasurys. Treasury Secretary Scott Bessent has stated that easing the SLR is a top priority and could reduce Treasury yields by 0.3 to 0.6 percentage points over time. The administration believes that current rules restrict banks' ability to buy and sell government bonds and that relaxing or eliminating the SLR will inject more liquidity into the Treasury market and boost lending. Temporary SLR relief was previously granted in 2020 during the pandemic. The proposed changes are expected to impact major financial institutions such as Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, U.S. Bancorp, and Wells Fargo. The plan would reverse stricter regulations imposed after the 2008 crisis and contrasts with the Biden administration's efforts to increase capital requirements. The Trump administration is also pursuing a broader deregulatory approach, as seen in the SEC's recent dismissal of dealer lawsuits on May 22, which reduced oversight of certain securities dealers and crypto trading firms. This policy shift follows concerns from banks and the financial industry about compliance costs and market activity. Additionally, proposals to end the federal conservatorship of Fannie Mae and Freddie Mac remain under discussion. Some warn that removing government oversight without addressing taxpayer guarantees could reintroduce systemic risks similar to those before the 2008 financial crisis.