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Regulatory Reversals: Political Transitions and the Congressional Review Act

A Republican Congress and the incoming Trump administration may employ the CRA to quickly overturn recent rules that faced heavy criticism from the financial services industry....more

FINRA Sets Up Shop in the Metaverse

On October 24, 2024, the Office of Financial Innovation (OFI) of the Financial Industry Regulatory Authority, Inc. (FINRA) published “The Metaverse and the Implications for the Securities Industry” (the Report)....more

CFPB Finalizes Open Banking Rule

The rule aims to reduce market concentration by guaranteeing consumer access to personal financial data, but faces strident criticism and immediate legal challenge....more

FDIC, OCC Finalize Policy on Bank Merger Transactions

Regulators seek to provide clarity and transparency on the bank merger review process, but changes may increase application complexity and unpredictability. Consistent with ongoing initiatives to strengthen US antitrust...more

CFPB Proposes to Amend the Remittance Rule

Remittance service providers would need to update their disclosure statements under a narrowly tailored proposed amendment which aims to resolve issues more efficiently and save consumers time....more

FDIC Proposes to Revise Brokered Deposit Regulations

The proposal would make key changes to the definition of “deposit broker” with significant ramifications for banks, fintechs, bank-fintech partnerships, and other third parties in the financial services industry....more

CFPB Proposes to Designate Earned Wage Access Products as Loans

Paycheck advance products that are deemed consumer loans under the CFPB’s new proposal would be subject to increased disclosure and regulatory protections....more

Agencies Issue Joint Proposal to Curb Incentive-Based Compensation in the Financial Services Industry

The proposal seeks to make executive compensation arrangements more sensitive to risk and would require complex risk management programs to ensure compliance....more

FRB Issues Report on Climate Scenario Analysis Pilot

With regulators keeping close watch, the results underscore the need for ongoing climate risk management investment and adaptation within the financial sector. On May 9, 2024, the Board of Governors of the Federal...more

US Senators Introduce Comprehensive Stablecoin Bill

The bipartisan bill seeks to foster innovation and promote US dollar dominance while protecting consumers and mitigating illicit finance risks. On April 17, 2024, US Senators Cynthia Lummis from the Senate Banking...more

Texas Judge Halts CFPB Rule Limiting Credit Card Late Fees

The preliminary injunction was granted pursuant to Fifth Circuit precedent that the CFPB’s independent funding structure is unconstitutional. On May 10, 2024, the US District Court for the Northern District of Texas...more

CFPB Finalizes Rule Limiting Credit Card Late Fees

The rule targets a statutory loophole that the CFPB asserts large credit card issuers exploited to exact excessive late fees from consumers. On March 5, 2024, the Consumer Financial Protection Bureau (CFPB) finalized a...more

Banking Trade Groups Challenge New Community Reinvestment Act Regulation

Banking agencies are alleged to have exceeded their congressional authorization, with potentially adverse consequences on banks and consumers. On February 5, 2024, several banking trade groups[1] (the Plaintiffs) sued...more

OCC Issues Policy Guidance on Buy Now, Pay Later Lending

The OCC outlines safety and soundness principles and appropriate risk management processes for its regulated institutions that engage in BNPL lending. On December 6, 2023, the Office of the Comptroller of the Currency...more

CFPB Proposes to Regulate Large Digital Wallet and Payment App Providers

The proposal would subject certain large non-bank companies offering wallet and payment services to federal regulatory oversight on par with banks and credit unions. On November 7, 2023, the Consumer Financial Protection...more

New York Bolsters Cybersecurity Requirements

Covered financial institutions now face heightened expectations in relation to cybersecurity governance, risk assessment, and incident reporting. The New York State Department of Financial Services’ (DFS) amendments (the...more

FINRA Proposes to Relax Communications Rule for Institutional Investors and Qualified Purchasers

The proposed amendment seeks to modify the existing framework of FINRA Rule 2210 to accommodate the use of certain projections and targeted returns. On November 13, 2023, the Financial Industry Regulatory Authority...more

FRB Proposes to Lower Debit Card Interchange Fee

A proposed rule would lower the maximum amount that large debit card issuers can charge merchants for each transaction. On October 25, 2023, the Board of Governors of the Federal Reserve System (FRB) published a proposal...more

OCC, FRB, and FDIC Finalize Joint Principles for Climate-Related Financial Risk Management

Guidance for the largest US financial institutions is intended to promote climate risk management consistent with general safety and soundness practices. On October 30, 2023, the three US federal bank regulatory agencies...more

California Adopts Digital Financial Assets Law

Licensees, exchanges, and other market participants should prepare to comply with the listing, disclosure, capital, and other requirements that the new law imposes. On October 13, 2023, California Governor Gavin Newsom...more

NYDFS Proposes Updated Guidance on Crypto Listing

The Proposed Guidance would require enhanced criteria for coin-listing and delisting procedures for New York-licensed virtual currency entities. On September 18, 2023, the New York Department of Financial Services (DFS)...more

Money Transmission Modernization Act Adopted in Several States

The Act aims to modernize and streamline state regulation of money transmitters while promoting innovation and consumer protection. More than a dozen US states have enacted the Money Transmission Modernization Act (MTMA)...more

Illinois Considering Crypto Licensing

A legislative initiative in Illinois would establish licensing and consumer protection requirements for digital asset businesses serving consumers in the state. On February 21, 2023, the Illinois Department of Financial...more

New York Department of Financial Services Issues Crypto Custody Guidance

The Guidance clarifies the regulator’s expectations on safekeeping customer digital assets, and the disclosures that must accompany such arrangements. On January 23, 2023, the New York Department of Financial Services...more

White House Issues Digital Asset Framework

The comprehensive framework, which spans multiple reports, aims to spur risk mitigation efforts and potentially a US central bank digital currency. On September 16, 2022, the White House published a fact sheet described...more

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