TAILOR Act of 2025

# TAILOR Act of 2025 Summary **What the Bill Does** The TAILOR Act would require federal banking regulators to customize their oversight and rules based on each financial institution's size, risk level, and business model—rather than applying one-size-fits-all regulations. Regulators would also need to report to Congress on what steps they're taking to reduce unnecessary burdens on banks. Additionally, the bill would streamline reporting requirements for community banks that meet certain safety standards, allowing them to use simpler capital calculations. **Who It Affects** This bill primarily impacts community banks and smaller financial institutions, which argue they face disproportionate regulatory costs compared to their larger competitors.

It would also affect federal banking agencies (like the Federal Reserve and the Office of the Comptroller of the Currency), which would need to review regulations adopted in the past seven years and adjust them accordingly. **Current Status** The bill was introduced in the 119th Congress by Senator Mike Rounds (R-SD) and is currently being reviewed in committee. It has not yet passed either chamber of Congress. The bill reflects ongoing debate about whether banking regulations should be tailored to institution size and complexity versus applied uniformly to ensure consistent safety standards across the financial system.