Why are US regulators taking opposite positions on the expected rules for UST repo haircuts?

One of the big talking points from the US Securities and Exchange Commission (SEC), and backed by the US Treasury and the Office of Financial Research (OFR), is that 70% of hedge fund business in non-centrally cleared bilateral repurchase agreement is done on zero margin. The SEC and US Treasury view the situation as unacceptable, which has fueled their calls for mandatory clearing of US Treasury repo. But the US Basel III Endgame Notice of Proposed Rulemaking (NPR) gives thumbs up to the practice. What’s going on here?
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