A system under strain: Lawmakers probe the future of deposit insurance

The House Financial Services Committee has begun to reexamine the foundations of American deposit insurance, opening a debate that blends questions of data, technology, risk, and political appetite.

The hearing, led by Chair French Hill, revealed a familiar divide. Policymakers recognize the need to modernize a framework designed for a different banking era, while bankers warn that rapid changes could introduce more uncertainty than stability.

Banks still anchor most of the country’s payment infrastructure. Yet digital banking, social

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