To keep you informed of recent activities, below are several of the most significant federal and state events that have influenced the Consumer Financial Services industry over the past week.
Federal Activities
State Activities
Federal Activities:
On July 26, it was reported that the Department of Government Efficiency (DOGE) is utilizing a newly developed artificial intelligence tool to expedite the rollback of federal regulations, aiming to eliminate 50% of all federal rules by the first anniversary of President Donald Trump’s second inauguration. According to the report, internal documents and interviews with government officials reveal an ambitious plan to automate the deregulation process across various agencies, potentially saving trillions in compliance costs. The “DOGE AI Deregulation Decision Tool,” developed under Elon Musk’s initiative, is designed to scan approximately 200,000 federal rules, flagging those deemed outdated or unnecessary. While the tool promises significant efficiency gains, concerns have been raised about its accuracy in interpreting complex legal language and the implications for civil servant roles in policymaking. Despite internal resistance and legal scrutiny, the administration plans to complete agency-specific deregulation lists by September 1 and nationwide rollout by January 20, 2026, under the “Relaunch America” initiative. For more information, click here.
On July 22, the U.S. Senate received and referred the Financial Technology Protection Act of 2025, introduced by Rep. Zachary Nunn (R-IA), to the Committee on Banking, Housing, and Urban Affairs. This legislation aims to establish an Independent Financial Technology Working Group to Combat Terrorism and Illicit Financing, chaired by the secretary of the Treasury. The working group will consist of representatives from various federal agencies and appointed experts from financial technology sectors. Its primary duties include researching the illicit use of digital assets and emerging technologies and developing legislative and regulatory proposals to enhance anti-money laundering and counter-terrorism financing efforts. The act mandates annual reports to Congress and outlines strategies to prevent rogue actors from evading sanctions using digital assets. The working group is set to terminate four years post-enactment, with provisions for winding up activities and returning unobligated funds to the Treasury. For more information, click here.
On July 21, the Consumer Financial Protection Bureau (CFPB) announced the withdrawal of a direct final rule that would have rescinded the requirement for state officials to notify the CFPB when taking enforcement actions under the Consumer Financial Protection Act. Initially published on May 21, the rule was subject to withdrawal if significant adverse comments were received by June 20. Following the receipt of such comments, the CFPB decided to retract the rule and plans to address the feedback in future rulemaking efforts. For more information, click here.
On July 21, the U.S. Court of Appeals for the District of Columbia temporarily blocked a district court order that reinstated Democratic Federal Trade Commissioner Rebecca Slaughter, following the Trump administration’s attempt to remove her from office. The Justice Department argued that the reinstatement violated the president’s executive powers, prompting the appellate court to hold the lower court’s ruling pending further filings by July 29. Slaughter, who was initially appointed by Trump and reappointed by President Joe Biden, has vowed to contest her removal, asserting that the Federal Trade Commission (FTC) should remain insulated from presidential politics. The White House maintains that the president has constitutional authority to dismiss executive officers, anticipating a favorable outcome. For more information, click here.
On July 21, William McNeilly of New Haven pleaded guilty in federal court to operating an unlicensed money transmitting business. McNeilly ran Global Income Marketplace LLC and Global NuMedia LLC, exchanging over $1 million in U.S. currency for cryptocurrency without the necessary license from the Connecticut Department of Banking. He faces charges that could result in up to 35 years of imprisonment. Sentencing is scheduled for October 20. For more information, click here.
On July 20, the U.S. House Appropriations Committee unveiled the Fiscal Year 2026 bill for the Financial Services and General Government Subcommittee, which was set for subcommittee consideration on July 21. The bill, championed by Subcommittee Chairman Dave Joyce (R-OH) and Chairman Tom Cole (R-OK), emphasizes fiscal responsibility by cutting the discretionary allocation to $23.341 billion, a reduction of $410 million from the previous year. It aligns with Trump’s America First agenda, aiming to eliminate liberal policies, enhance national security, and improve government efficiency through technology. Key provisions include bolstering cybersecurity, maintaining “Buy American” standards, and prohibiting the establishment of a U.S. Central Bank Digital Currency. For more information, click here.
On July 14, the FTC secured a court order aimed at halting allegedly deceptive practices against seven companies and three individuals operating the “Accelerated Debt” program. The defendants allegedly contacted consumers through telemarketing calls or in response to calls resulting from their mail and online ads and made false claims about their ability to substantially reduce consumer debts and misleading consumers about fees. The FTC alleged these actions violated the FTC Act, the Telemarketing Sales Rule, the Impersonation Rule, the Fair Credit Reporting Act, and § 521 of the Gramm-Leach-Bliley Act by making false statements to get consumers’ financial account numbers. The court’s order includes a temporary restraining order, asset freeze, and the appointment of a temporary receiver to oversee the defendants’ business operations. For more information, click here.
On July 10, the White House released “America’s AI Action Plan,” outlining a strategic roadmap to secure global dominance in artificial intelligence. The plan, initiated by Trump through Executive Order 14179, emphasizes three pillars: accelerating AI innovation, building American AI infrastructure, and leading in international AI diplomacy and security. It aims to dismantle regulatory barriers, promote AI adoption across sectors, and establish American AI as the global standard. The plan highlights the importance of empowering American workers, ensuring AI systems are free from ideological bias, and safeguarding advanced technologies from misuse. This comprehensive strategy seeks to usher in a new era of economic competitiveness and national security, positioning the U.S. at the forefront of AI development and application. For more information, click here.
State Activities:
On July 28, the New York City Department of Consumer and Worker Protection (NYC DCWP) announced another delay in the effective date of its amended debt collection rules. This marks the second postponement. The rules were initially set to take effect on December 1, 2024. Then the enforcement date was first postponed to April 1, 2025, following industry concerns and legal challenges, and then to October 1, 2025. However, the NYC DCWP has now stated that the rules will not go into effect on October 1, 2025, and has committed to providing an update at least three months prior to the new effective date. For more information, click here.
