A lame-duck session of Congress occurs when the current Congress meets after its successor has been elected but before the new term begins. This typically happens between Election Day and the convening of the next Congress in January.
Despite being termed "lame-duck," Congress retains its full authority during this period. The transition often prompts a flurry of legislative activity, especially if there is a shift in party control. For instance, after Democrats gained control of the Senate in 2020, 28 nominations were confirmed. Currently, Majority Leader Chuck Schumer (D-NY) is preparing for nomination votes, including nine judicial nominations this week. The House, lacking advice and consent powers, faces limitations on what it can accomplish during a lame-duck session.
In financial services policy, attention will focus on outbound investment reform, de minimus crackdown, and cryptocurrency issues. Both chambers will continue to hold hearings related to financial services. Notably, the House Financial Services Committee will host FDIC Chair Martin Gruenberg this week. Chair Gruenberg has announced his resignation effective January 19.
During a recent hearing, FDIC Chairman Gruenberg, Federal Reserve Vice Chairman Barr, and Acting Comptroller Hsu from the Office of the Comptroller of the Currency pledged that their agencies would refrain from finalizing any "major rulemakings" before a new administration takes office. However, Director Chopra of the CFPB has not made a similar commitment.