On May 20, the U.S. Senate voted 66-32 to move forward with the Guardrails and Enforcement for Neutral Issuers of United States Stablecoins (GENIUS) Act (the “Act”), pushing the stablecoin bill past a major procedural hurdle. The vote sets the stage for full Senate debate and potential passage of the Act as early as next week.Continue Reading Senate Advances Stablecoin Bill
On May 14, the CFPB issued a proposed rule to rescind recent amendments (here, here, and here) to its nonbank supervisory program. The amendments were designed to expand and formalize the Bureau’s process for subjecting nonbank covered persons to supervision under the Consumer Financial Protection Act (CFPA). Under the CFPA, the CFPB is authorized to supervise a nonbank covered person if it has reasonable cause to determine if the nonbank covered person was engaged in financial services-related conduct that posed a risk to consumers. Among other things, the amendments introduced a mechanism for the Director to publicly release final decisions and order.Continue Reading CFPB Proposes to Rescind Risk-Based Supervision Rulemaking
On May 9, the NYDFS announced that Governor Kathy Hochul signed New York’s FY2026 Budget into law, enacting two major consumer financial protection measures. The budget establishes a licensing and supervision framework for Buy Now Pay Later (BNPL) lenders operating in New York and supports NYDFS’s January 2025 proposal to cap overdraft fees and prohibit certain high-cost practices (previously discussed here). Key provisions of the budget include:Continue Reading New York Enacts BNPL and Overdraft Fee Restrictions
On May 20, federal merger policy took a sharp turn as the FDIC voted to rescind its 2024 merger guidelines, and the U.S. House passed a Congressional Review Act (CRA) resolution to repeal the OCC’s 2024 merger rule.Continue Reading FDIC Rescinds 2024 Merger Guidelines; House Votes to Repeal OCC Rule Under CRA
On May 15, the CFPB rescinded its May 2022 interpretive rule that had expanded state enforcement authority under Section 1042 of the Consumer Financial Protection Act (CFPA). The Bureau now maintains that the previous guidance misread the statute and improperly extended state authority beyond what Congress intended.Continue Reading CFPB Narrows State Enforcement Powers by Rescinding 2022 Interpretative Rule
On May 15, the CFPB issued an amended consent order against an international remittance provider, reducing its civil penalty from $2.025 million to $44,955. The order alleges violations of the Electronic Fund Transfer Act (EFTA), its implementing Regulation E, and the Consumer Financial Protection Act (CFPA).Continue Reading CFPB Reduces Civil Penalty in Settled Remittance Enforcement Action
On May 15, the CFPB withdrew three Biden-era rulemaking proposals, including a December 2024 proposal to regulate data brokers as consumer reporting agencies under the Fair Credit Reporting Act (FCRA), a January proposal to extend Regulation E to emerging payment systems such as those used in video games and esports betting, and a proposed interpretive rule targeting restrictive and potentially unlawful terms in consumer contracts.Continue Reading CFPB Withdraws Guidance and Proposed Rules on Data Broker, Video Game Payments, and Contract Clauses
On May 7, the OCC issued Interpretive Letter 1184, reaffirming that national banks and federal savings associations may provide cryptocurrency custody and execution services, including through sub-custodians. The OCC confirmed that these activities are permissible under existing banking authority so long as banks comply with applicable law and engage in safe and sound practices.Continue Reading OCC Confirms Banks’ Authority to Offer Crypto Custody and Execution Services
On May 9, the U.S. Department of the Treasury announced that President Trump intends to nominate Jonathan McKernan to serve as the Undersecretary of Domestic Finance. McKernan had been awaiting Senate confirmation to lead the CFPB, but the White House confirmed his nomination will be rescinded as the administration continues to pursue structural change to the Bureau.Continue Reading CFPB Director Nominee to Move to Treasury Finance Role
On May 12, the CFPB formally withdrew nearly 70 guidance materials—including policy statements, advisory opinions, circulars, and interpretive rules—through a Federal Register notice issued by Acting Director Russell Vought. The move stems from an internal memo circulated last month to identify guidance that allegedly imposed unlawful compliance burdens or exceeded statutory authority.Continue Reading CFPB Withdraws Dozens of Guidance Documents as Part of Deregulatory Push
On May 9, President Trump signed a Congressional Review Act resolution repealing the CFPB’s final rule restricting overdraft fees at large financial institutions. The rule, originally finalized under the Biden administration, would have imposed new limits on overdraft fees charged by banks with over $10 billion in assets.Continue Reading President Trump Signs Resolution Nullifying CFPB Overdraft Fee Rule