US regulators are reportedly nearing a decision to ease key capital requirement regulations for banks, a move supported by the Trump administration aimed at increasing liquidity in the Treasury market, boosting lending, and alleviating upward pressure on long-term borrowing rates. This potential regulatory adjustment aligns with longstanding demands from Wall Street to reduce capital requirements, which could also provide support to small businesses and other sectors. While there is general agreement between banks and regulators on the need to reduce legislation, some differences remain regarding the specifics of capital requirements. The anticipated changes are seen as part of broader efforts to adjust financial regulations to stimulate economic activity.