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 August 1, the Securities and Exchange Commission (SEC) announced that its Crypto Task Force, led by Commissioner Hester Peirce, will host a series of roundtables across the U.S. These events aim to engage stakeholders who were unable to attend previous sessions in Washington, D.C., and to ensure comprehensive outreach in developing a regulatory framework for cryptocurrencies. The task force is particularly interested in hearing from representatives of small, emerging crypto-related projects. Interested parties can request participation by emailing the SEC with details about their project and preferred meeting location. The roundtables will take place in various cities, including Berkeley, Boston, Dallas, and New York City, among others, providing multiple opportunities for engagement and input. For more information, click here.
On August 1, Acting Chairman Caroline D. Pham of the Commodity Futures Trading Commission (CFTC) announced the commencement of a “crypto sprint” aimed at implementing the recommendations from the President’s Working Group on Digital Asset Markets report. This initiative aligns with President Trump’s vision to establish the U.S. as the global leader in cryptocurrency. The CFTC plans to collaborate closely with SEC Chairman Paul Atkins and Peirce to advance Project Crypto, focusing on providing regulatory clarity and fostering innovation in digital asset markets. Since January, the CFTC has actively engaged with industry leaders through the inaugural Crypto CEO Forum, updated guidance, and discussions on a digital asset markets pilot program. Additionally, the CFTC has completed a public comment period on 24/7 trading and perpetual derivatives, which have been operational on CFTC-registered designated contract markets since earlier this year. For more information, click here.
On July 31, Paul S. Atkins, chairman of the SEC, addressed the America First Policy Institute, emphasizing a pivotal moment for American leadership in crypto asset markets. He introduced “Project Crypto,” a strategic initiative aimed at modernizing securities regulations to support Trump’s vision of making the U.S. the “crypto capital of the world.” Atkins highlighted historical parallels in financial market evolution, from the Buttonwood Agreement to blockchain technology, underscoring the SEC’s role in fostering innovation. He announced plans to revamp regulatory frameworks to accommodate on-chain markets, enhance custodial and trading venue choices, and facilitate the development of “super-apps” for integrated financial services. Atkins committed to reshoring crypto businesses and ensuring the U.S. remains a leader in digital finance, aligning with recent legislative efforts like the GENIUS Act and the President’s Working Group on Digital Asset Markets’ recommendations. For more information, click here.
On July 30, Chairman French Hill of the U.S. House Financial Services Committee, along with a bipartisan group of lawmakers, introduced H.R. 4801, the Unleashing AI Innovation in Financial Services Act. This legislation aims to promote the use of artificial intelligence (AI) in financial services by establishing regulatory sandboxes for AI test projects at federal financial regulatory agencies. Hill emphasized the importance of allowing companies to experiment with AI to foster innovation and collaboration between the public and private sectors. The bill, supported by both House and Senate members, seeks to ensure that the U.S. remains at the forefront of AI innovation while maintaining consumer protection. The introduction of this bill aligns with the Trump administration’s AI Action Plan, which underscores the significance of regulatory sandboxes in enabling AI adoption. For more information, click here.
On July 30, the President’s Working Group on Digital Asset Markets released a comprehensive report aimed at solidifying American leadership in digital financial technology, following Trump’s commitment to making the U.S. the “crypto capital of the world.” Established under Executive Order 14178, the working group proposed a series of regulatory and legislative measures to foster growth and innovation in digital asset markets, enhance consumer protection, and ensure the U.S. remains at the forefront of blockchain technology. Key recommendations include empowering the CFTC to oversee nonsecurity digital asset spot markets, integrating DeFi technology into mainstream finance, modernizing banking regulations to support digital assets, and implementing the GENIUS Act to regulate stablecoins. Additionally, the report emphasizes the need for updated anti-money laundering rules, privacy protections, and fair taxation of digital assets, aiming to balance innovation with security and consumer rights. For more information, click here and here.
On July 29, the Consumer Financial Protection Bureau (CFPB) filed a motion to stay in the U.S. District Court for the Eastern District of Kentucky indicating that it has decided to initiate a new rulemaking process concerning its final rule on personal financial data rights under Section 1033 of the Consumer Financial Protection Act of 2010 (1033 rule). “The Bureau seeks to comprehensively reexamine this matter alongside stakeholders and the broader public to come up with a well-reasoned approach to these complex issues that aligns with the policy preferences of new leadership and addresses the defects in the initial Rule.” The CFPB indicated that it plans to issue an advance notice of proposed rulemaking within three weeks, signaling a swift approach to addressing the concerns raised by stakeholders and the court. The court granted the motion that same day and ordered the parties to submit a joint status report every 45 days and within seven days of final agency action on the 1033 rule. For more information, click here.
On July 29, the SEC approved orders allowing in-kind creations and redemptions for crypto asset exchange-traded product (ETP) shares, marking a significant shift from the previous cash-only approach for spot bitcoin and ether ETPs. This decision aligns crypto ETPs with other commodity-based ETPs, enhancing cost efficiency and market flexibility. SEC Chairman Paul S. Atkins emphasized the importance of developing a regulatory framework tailored to crypto asset markets, noting that these approvals will benefit investors by reducing costs and increasing efficiency. The SEC also advanced a merit-neutral approach to crypto products, approving exchange applications for mixed spot bitcoin and ether ETPs, options on certain bitcoin ETPs, and increasing position limits for listed options. Additionally, the SEC issued scheduling orders to solicit comments on proposals to list and trade large-cap crypto-based ETPs, further supporting a dynamic and robust market environment. For more information, click here.
On July 28, the Federal Trade Commission’s Bureau of Consumer Protection (FTC BCP) provided guidance on managing debt while avoiding scams, especially for retirees or those on fixed incomes. The FTC BCP advises individuals to assess their household budgets and negotiate directly with creditors to establish manageable payment plans before debt collectors intervene. They recommend consulting reputable credit counseling agencies to create effective repayment strategies. To avoid debt relief scams, individuals should refrain from paying upfront fees and ensure all agreements are documented in writing. The FTC BCP also emphasizes understanding one’s rights and improving credit over time, as legitimate credit repair cannot erase accurate negative information. Consumers are encouraged to report scams to the FTC at ReportFraud.ftc.gov, promoting a proactive approach to responsible debt management. For more information, click here.
On July 23, a coalition of civil rights, business, and economic justice advocates filed a lawsuit against in the U.S. District Court for the District of Columbia, against the Consumer Financial Protection Bureau (CFPB) and Acting Director Russell Vought for the final rule implementing Section 1071 of the Dodd-Frank Act, This rule requires the collection and publication of small business lending data to prevent discrimination and support underserved entrepreneurs. The plaintiffs, Rise Economy, Main Street Alliance, and the National Community Reinvestment Coalition, argue that the administration’s actions violate the Administrative Procedure Act and undermine efforts to ensure fair access to credit for women-owned, minority-owned, and small businesses. The lawsuit seeks to reinstate the rule, emphasizing the need for transparency and accountability in lending practices to protect small business owners from discriminatory practices. For more information, click here.
On July 21, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) announced the postponement of the effective date for the Anti-Money Laundering/Countering the Financing of Terrorism Program and Suspicious Activity Report Filing Requirements for Registered Investment Advisers and Exempt Reporting Advisers (IA AML Rule). Originally set to take effect on January 1, 2026, the rule’s implementation has been delayed until January 1, 2028, to ensure a balanced approach to regulation that considers both costs and benefits. This postponement allows FinCEN to revisit the rule’s scope and tailor it to the diverse business models within the investment adviser sector, potentially easing compliance costs and reducing regulatory uncertainty. During this period, FinCEN plans to issue exemptive relief to provide regulatory certainty and will collaborate with the SEC to review related customer identification program requirements. For more information, click here.
On July 16, TradeStation Securities, Inc., a member firm of the Financial Industry Regulatory Authority (FINRA), submitted a letter of acceptance, waiver, and consent (AWC) to FINRA’s Department of Enforcement. This AWC proposes a settlement for alleged rule violations concerning retail communications related to crypto assets. Between July and September 2022, TradeStation Securities distributed retail communications about crypto assets and related services that failed to meet FINRA’s standards. Specifically, these communications allegedly did not clearly disclose that crypto assets were not offered through a registered broker-dealer, nor did they provide a fair and balanced presentation of the benefits and risks associated with the products. Consequently, TradeStation Securities violated FINRA Rules 2210(d) and 2010, resulting in a censure and an $85,000 fine. For more information, click here.
On July 7, the Federal Reserve’s FEDS Notes explored the emerging “Pay-by-Bank” payment solution, which is gaining traction as an alternative to traditional card-based transactions in the U.S. consumer payments landscape. This method, also known as “account-to-account” payments, allows direct fund transfers from a payer’s bank account to a payee’s account, offering merchants a potentially cost-effective and secure option compared to cash and cards. The note highlights the declining use of cash and checks, the rise of digital payment methods, and the potential benefits and risks associated with Pay-by-Bank, including cost savings, enhanced security, and the impact on consumer behavior. It also discusses the role of open banking infrastructure and third-party service providers in facilitating these transactions, while noting the growing interest among younger and higher-income consumers. For more information, click here.
State Activities:
On July 29, the Office of the Attorney General (OAG) released updated guidance to assist businesses in Massachusetts with compliance ahead of the September 2 deadline for new “junk fee” regulations. These consumer protection regulations aim to prohibit hidden, surprise, or unnecessary charges that inflate the total cost of products or services beyond the advertised price. The guidance clarifies that such practices violate the Massachusetts Consumer Protection Act and imposes requirements for increased price transparency, particularly in marketing, sales, trial offers, and subscriptions. The updated guidance includes answers to frequently asked questions and specifies circumstances where industries may already comply through existing consumer protections. Businesses must adhere to these regulations by the deadline to avoid legal enforcement actions. The OAG has also provided a webinar to further aid businesses in understanding and implementing these regulations. For more information, click here.
On July 29, Senate Bill 156 was signed into law, amending Title 6 of the Delaware Code to enhance the Medical Debt Protection Act. This act prohibits the inclusion of medical debt in consumer reports, aligning Delaware with at least nine other states that have enacted similar measures since 2023. SB 156 clarifies that medical debt should not influence credit, employment, or housing decisions. This legislation becomes effective on October 27. For more information, click here.
On July 24, Oregon Governor Tina Kotek signed House Bill 3865 (HB 3865) into law, introducing significant changes to the regulation of telephone solicitations within the state. The bill outlines specific conditions under which telephone solicitations are deemed unlawful, such as contacting consumers outside the hours of 8 a.m. to 8 p.m. (previously 9 p.m.) or exceeding three solicitations within a 24-hour period, unless an established business relationship exists. Additionally, the bill expands the definition of telephone solicitations to include text messages. The bill also regulates the use of automatic dialing and announcing devices (ADADs), requiring them to disconnect promptly after a call is terminated and to provide consumers with an opt-out mechanism. Callers must respect a party’s request to not be called or texted again. HB 3865 includes specific exemptions for debt collectors, debt buyers, and collection agencies. For more information, click here.
On July 24, 2025, the California Privacy Protection Agency (CPPA) released updated regulations under the California Consumer Privacy Act (CCPA), moving closer to finalizing these amendments. The revised regulations, which follow a 45-day public comment period, introduce changes in key areas such as automated decision-making technology (ADMT), risk assessments, and cybersecurity audits. Businesses engaging in high-risk data processing must conduct risk assessments and submit annual cybersecurity audits. By January 1, 2027, companies may need to notify individuals about the use of ADMT for significant decisions, including those related to financial services and health care. The CPPA aims to finalize these regulations by November, urging companies to prepare for compliance by Q4 2025. For more information, click here.
