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 21, the Consumer Financial Protection Bureau (CFPB) officially withdrew a direct final rule that would have eliminated the requirement for state officials to notify the CFPB when taking enforcement actions under the Consumer Financial Protection Act. This decision follows the receipt of significant adverse comments by the June 20 deadline, prompting the CFPB to reconsider the rule in future rulemaking efforts. The withdrawal is not classified as a “significant regulatory action” under Executive Order 12866, indicating it does not require further review. Acting Director Russell Vought announced the withdrawal, emphasizing the CFPB’s responsiveness to public feedback. For more information, click here.
On July 18, President Donald Trump signed the GENIUS Act, a landmark bill regulating cryptocurrency, particularly focusing on stablecoins, which are pegged to assets like the dollar. The act establishes a regulatory framework for the $250 billion stablecoin market, aiming to facilitate faster and lower-cost financial transactions. The bill, which passed the House with bipartisan support, marks a significant step in integrating digital currency into the mainstream financial system. The signing ceremony, attended by key figures from the crypto industry, underscored the administration’s commitment to fostering innovation in financial technology. For more information, click here.
On July 18, the U.S. Securities and Exchange Commission (SEC) proposed an “innovation exception” aimed at regulating digital assets to enhance the tokenization of securities and stablecoins. This initiative seeks to provide regulatory clarity and tax relief for blockchain firms, thereby fostering institutional investment and improving market efficiency. The proposal aligns with the GENIUS Act’s objectives, signaling a maturing approach to digital assets and economic innovation in the U.S. By promoting stablecoin tokenization, the SEC hopes to accelerate their adoption as fiat alternatives, integrating them into mainstream financial systems. This regulatory shift, championed by SEC Chairman Paul Atkins, is part of a broader effort to modernize the digital asset landscape, potentially leading to more efficient and transparent financial markets and encouraging innovation within the crypto industry. For more information, click here.
On July 18, America’s Credit Unions urged the National Credit Union Administration (NCUA) to swiftly initiate rulemaking to allow credit unions to take custody of digital assets for their members, following the enactment of the GENIUS Act. In a letter to Chairman Kyle Hauptman, America’s Credit Unions emphasized the importance of enabling credit unions to safeguard digital assets directly, highlighting the competitive disadvantage they face compared to banks that have had clearer guidance on cryptocurrency since 2021. The organization stressed the urgency of extending federal oversight and leveraging credit unions’ cooperative model to ensure members can trust their institutions with digital assets. They called for prompt action to develop a regulatory framework that aligns with the act’s one-year implementation timeline, advocating for collaboration with credit union experts to guide the process. For more information, click here.
On July 17, a federal judge reinstated Rebecca Kelly Slaughter, a Democrat, to the Federal Trade Commission (FTC), ruling that her dismissal by Trump was illegal. U.S. District Judge Loren AliKhan cited the 1935 Supreme Court decision in Humphrey’s Executor, which protects FTC commissioners from being removed without cause. This decision challenges Trump’s broader efforts to exert control over independent agencies, as he had also dismissed other agency heads. The ruling, which could be appealed to the Supreme Court, underscores ongoing legal debates about presidential powers and the independence of regulatory bodies. Slaughter, who has four years remaining in her term, expressed her readiness to resume her duties, while the Trump administration’s attorneys argued for the president’s authority to remove officials obstructing his policies. For more information, click here.
On July 17, it was reported that Trump is poised to sign an executive order that would allow cryptocurrencies and gold to be included in U.S. retirement plans such as 401(k)s. This initiative aims to expand investment options by directing the Labor Department and the SEC to provide guidance for incorporating these assets into retirement plans. The order follows the Trump administration’s rollback of previous guidance that discouraged crypto investments in 401(k)s, emphasizing asset class neutrality. The executive order builds on previous policies allowing private equity in target-date funds, although it remains under review, with plan sponsors required to act as fiduciaries in the best interest of participants. For more information, click here.
On July 16, the Federal Reserve Board, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) jointly published a proposed rule to rescind the 2023 Community Reinvestment Act (CRA) final rule. This proposal aims to revert to the CRA framework that was in effect prior to the 2023 amendments, with certain technical updates. This decision follows ongoing litigation in the Fifth Circuit, where banking trade associations challenged the 2023 rule, alleging regulatory overreach. The CRA, established in 1977, was designed to ensure that banks meet the credit needs of their communities, including low- and moderate-income areas, while maintaining safety and soundness. The 2023 CRA final rule was intended to modernize the assessment of lenders’ compliance, encouraging banks to expand access to credit and adapt to changes in the banking industry, such as mobile and online banking. Despite these intentions, the rule faced criticism for not addressing nonbank lenders and credit unions, and for altering the CRA performance evaluation process in ways that some argued did not align with the law. The federal banking agencies have proposed to rescind the 2023 CRA final rule and revert to the 1995 CRA regulations, with updated provisions to reflect inflation adjustments for 2025. For more information, click here.
On July 16, the U.S. Commodity Futures Trading Commission (CFTC) initiated staff firings affecting more than two dozen employees across its enforcement, market oversight, administration, and data divisions. This move follows a Supreme Court decision that facilitated mass government firings and is part of a broader reorganization under acting Chair Caroline Pham. The CFTC, which had 636 full-time equivalent positions in fiscal 2025, has also seen significant staff reductions through voluntary resignation programs. The restructuring aligns with Trump’s call for reshaping the federal workforce. For more information, click here.
On July 15, Jonathan V. Gould was sworn in as the 32nd comptroller of the currency by Dr. Michael Faulkender, deputy secretary of the U.S. Treasury. Nominated by Trump on February 11, and confirmed by the U.S. Senate on July 10, Gould succeeds Rodney E. Hood, who served as acting comptroller for the past five months. In his statement, Gould expressed gratitude for the nomination and confirmation and emphasized his commitment to maintaining the relevance and strength of the national banking system. He looks forward to collaborating with the Office of the Comptroller of the Currency (OCC) professionals to ensure a safe banking system, enhance regulation, embrace innovation, and promote fair access to financial services. Gould, who previously served as senior deputy comptroller and chief counsel at the OCC, brings extensive experience from both the public and private sectors. For more information, click here.
On July 15, the Trump administration concluded investigations into Polymarket, an online prediction betting site, without filing any charges. The probes by the Justice Department and CFTC focused on whether Polymarket was accepting bets from U.S. users, despite previous assurances to federal regulators that it would not. This decision marks another instance of the Trump administration ceasing actions initiated under the Biden administration against crypto companies and online betting markets. Polymarket had previously been fined $1.4 million by the CFTC for failing to register as a facility for event-based binary options. For more information, click here.
On July 15, the House Committee on Financial Services, chaired by French Hill (R-AR), convened to assess the impacts and unintended consequences of the Dodd-Frank Act, 15 years after its enactment. The hearing highlighted concerns that the act’s broad regulatory framework has not fulfilled its promise to prevent financial crises, instead burdening community banks with one-size-fits-all mandates and fostering regulatory complexity. Representatives from various districts shared insights on how Dodd-Frank has led to bank consolidations and increased compliance costs, particularly affecting small businesses and community banks. Witnesses from the financial sector acknowledged the act’s role in enhancing financial resilience but criticized its inefficiencies and the need for regulation to adapt to evolving market conditions. The discussion underscored the balance between regulatory oversight and fostering innovation and competition within the financial industry. For more information, click here.
On July 15, the Federal Deposit Insurance Corporation (FDIC) Board of Directors proposed a significant amendment to its Guidelines for Appeals of Material Supervisory Determinations. The proposal aims to replace the existing Supervision Appeals Review Committee (SARC) with a new, independent Office of Supervisory Appeals. This standalone office would be dedicated solely to resolving appeals, ensuring that each case receives thorough attention and can adapt to increased appeal volumes. Acting FDIC Chairman Travis Hill emphasized that this change would create a robust and consistent supervisory appeals process, independent of the divisions responsible for initial supervisory determinations. The office would be staffed by experts with substantial banking knowledge and supervisory experience, potentially including former government officials and industry professionals. The FDIC is seeking public comments on this proposal, which are due 60 days after its publication in the Federal Register. For more information, click here.
On July 15, the FDIC Board of Directors approved the publication of a request for information (RFI) to gather insights and comments from stakeholders on how the agency reviews filings from industrial banks and industrial loan companies. This initiative aims to refine the FDIC’s evaluation of statutory factors, taking into account the distinct business models of industrial banks and the diverse entities interested in establishing such banks in today’s marketplace. Concurrently, the FDIC board withdrew a proposed rule from August 12, 2024, concerning the parent companies of these banks, indicating that any future changes will be pursued through new regulatory actions. Public comments on the RFI are invited within 60 days following its publication in the Federal Register. For more information, click here.
On July 15, the FDIC Board of Directors approved a notice of proposed rulemaking aimed at streamlining the processes for establishing and relocating domestic branches and offices. This proposal seeks to enhance the speed and certainty of the filing process under 12 CFR part 303, while reducing the associated regulatory burden. The rule would apply to insured state nonmember banks and insured branches of foreign banks, introducing key changes such as automatic approval of expedited filings within three business days, removal of the FDIC’s discretion to exclude filings from expedited processing, elimination of filing requirements for minor branch facility changes, and removal of public notice and comment requirements. Stakeholders are invited to submit comments on the proposed rule within 60 days following its publication in the Federal Register. For more information, click here.
On July 14, the CFPB filed a status report announcing its decision not to reissue its Medical Debt Collection Advisory Opinion, which had been issued in 2024 to “remind debt collectors of their obligations to comply with the Fair Debt Collection Practices Act [FDCPA] and Regulation F’s prohibition on false, deceptive, or misleading representations or means in connection with the collection of any medical debt and unfair or unconscionable means to collect or attempt to collect any medical debt.” The Advisory Opinion had been challenged in the U.S. District Court for the District of Columbia by ACA International and Collection Bureau Services, Inc. This decision comes as part of the CFPB’s broader initiative to withdraw numerous policy statements, interpretive rules, advisory opinions, and other guidance documents. The CFPB’s decision also comes in the wake of the Eastern District of Texas’ entry of a consent judgment vacating the CFPB’s recently enacted rule that purported to ban consumer reporting agencies from including medical debts on consumer reports. For more information, click here.
On July 14, the OCC issued Bulletin 2025-16, announcing the removal of references to disparate impact liability from the “Fair Lending” booklet of the Comptroller’s Handbook and instructing examiners to cease examining banks for disparate impact liability. This change aligns with Executive Order 14281, issued by Trump, which aims to eliminate the use of disparate impact liability in all contexts at both the federal and state level. The OCC expects banks it supervises to continue providing fair access to financial services, treating customers equitably, and adhering to all applicable laws and regulations. For more information, click here.
On July 14, CFTC Commissioner Kristin Johnson delivered opening remarks at the Regulators Roundtable on Financial Markets Innovation and Supervision of Emergent Technology in London. She emphasized the transformative impact of artificial intelligence (AI) and cyber risks on the global financial services sector. Johnson highlighted AI’s potential to enhance inclusivity, efficiency, and accessibility in financial services, while underscoring the need for robust governance and ethical design. The roundtable focused on balancing innovation with stability and security, addressing AI’s role in fraud detection, risk management, and compliance, and exploring the challenges of bias, transparency, and cybersecurity. Johnson called for international cooperation to harmonize regulatory expectations, improve information sharing, and strengthen crisis response, emphasizing that cyber resilience is a financial stability imperative. For more information, click here.
On July 14, the Federal Communications Commission (FCC) issued an order to amend its rules following the Eleventh Circuit’s decision that invalidated a regulation requiring individual consumer consent for companies to contact customers via comparison shopping sites. This decision was part of the FCC’s “Delete, Delete, Delete” initiative aimed at reducing unnecessary regulatory burdens. The Eleventh Circuit found that the consent restrictions conflicted with the definition of “prior consent” under the Telephone Consumer Protection Act. The FCC’s action aligns with Trump’s directive to minimize regulations, and the rule change reflects the agency’s commitment to adapting its policies to current legal standards. For more information, click here.
On July 11, the Department of the Treasury and the Internal Revenue Service (IRS) announced the revocation of a final rule concerning “Gross Proceeds Reporting by Brokers that Regularly Provide Services Effectuating Digital Asset Sales.” This action follows a joint resolution passed by Congress and signed by the President, disapproving the rule under the Congressional Review Act (CRA). As a result, the rule, which initially required certain decentralized finance participants to file information returns as brokers, is rendered without legal effect. Consequently, the Treasury and IRS have removed the rule from the Code of Federal Regulations and reinstated the previous regulatory text. This change is effective immediately, and no public comments are being solicited on this action. For more information, click here.
On July 10, the U.S. Department of Housing and Urban Development (HUD) and the Office of Management and Budget (OMB) jointly announced the effective disbandment of the interagency Property Appraisal and Valuation Equity (PAVE) Task Force, a Biden-era initiative aimed at addressing discrimination in real estate appraisals through a whole of federal government approach. The announcement states that this decision to eliminate “the core policies of the PAVE Task Force” is in response to Trump’s executive orders, including “Ending Radical and Wasteful Government DEI Programs and Preferencing” and “Delivering Emergency Price Relief for American Families and Defeating the Cost-of-Living Crisis.” The announcement indicates that these changes are designed to eliminate what HUD describes as “burdensome policies” and “onerous hurdles” that have increased costs, inhibited access to homeownership, and discouraged market participation. The announcement states that the federal fair lending laws (Fair Housing Act and Equal Credit Opportunity Act), which prohibit discrimination in housing-related transactions, including the homebuying and lending processes, will continue to be enforced by the agencies. For more information, click here.
On July 10, the Federal Reserve Board announced a request for public comment on a proposed revision to its supervisory rating framework for large bank holding companies, aimed at refining the criteria for determining their “well managed” status. The proposed changes seek to better align the framework with the supervisory rating systems used for other banking organizations and more accurately reflect the financial and operational strength of these institutions. The current framework, established in 2018, evaluates banks based on capital, liquidity, and governance and controls, with ratings ranging from “broadly meets expectations” to “deficient-2.” Under the new proposal, a bank with no more than one “deficient-1” rating could still be considered “well managed,” while those with a “deficient-2” rating would not. Similar adjustments are proposed for insurers regulated by the Board. The Board is also considering further comprehensive changes, including the introduction of composite ratings. Comments on the proposal are due 30 days after its publication in the Federal Register. For more information, click here.
On July 16, Ohio Republican Representative Max Miller announced his intention to spearhead a comprehensive tax overhaul for digital assets, aiming to introduce draft legislation that would establish a clear tax framework for cryptocurrencies. During a House Ways and Means Subcommittee hearing, Miller emphasized the need for a tax code that aligns with innovation, proposing exemptions for small crypto transactions and clarifying tax implications for activities like mining and staking. His proposal also seeks to modernize “wash sale rules” and improve the treatment of digital assets in retirement plans and charitable contributions. For more information, click here.
State Activities:
On July 10, the U.S. District Court for the District of Nevada received an opposition from the Nevada Gaming Control Board and other state officials against Crypto.com’s motion for a preliminary injunction. Crypto.com, operating as North American Derivatives Exchange, Inc., sought to prevent Nevada from enforcing its gaming laws, arguing that the Commodity Exchange Act (CEA) preempts state regulation of its sports event contracts. The defendants contended that Crypto.com’s activities constitute unlicensed sports betting, exploiting a loophole in commodities law to bypass Nevada’s stringent gaming regulations. They argued that Crypto.com has not demonstrated a likelihood of success on the merits or irreparable harm, emphasizing the importance of maintaining the integrity and stability of Nevada’s gaming industry. For more information, click here.
