The U.S. Treasury Department discusses whether to relax U.S. debt capital regulations

U.S. Treasury Undersecretary Michael Faulkender said officials are discussing a possible rule change for banks. As U.S. Treasuries fell last week, attention to the "supplementary leverage ratio" (SLR) regulation has skyrocketed. The biggest drop in U.S. Treasuries in more than two decades has raised concerns about a market crash similar to the March 2020 crash. Any rule change would still require approval from the Federal Reserve and other regulators, although the Treasury secretary is chair of the regulatory committee responsible for U.S. financial stability. "We are looking into it and have already started discussions," Faulkender said at an event.