In the wake of the global financial crisis, the United States and the European Union have acted not only to recover from the crisis, but also to implement regulatory reforms to prevent another crisis of this magnitude in the future. The path to reform, however, has not been smooth. Political debates over fundamental issues have slowed progress toward making meaningful reform in regulating the financial sector.

Deepening transatlantic economic integration has brought mutual benefit to the United States and Europe, but it has also created new potential for transatlantic conflict…