Recent congressional debate over the proposed CLARITY Act has highlighted a pivotal issue in stablecoin regulation: whether stablecoin issuers, or the exchanges and other third parties that distribute their tokens, should be permitted to offer yield to stablecoin holders. On January 12, the Senate Banking Committee released an updated draft of the CLARITY Act including Section 404, a provision prohibiting digital asset service providers from paying any form of interest or yield “solely in connection with the holding of a payment stablecoin.” While the legislation seeks to establish clearer federal rules for digital asset markets, the treatment of stablecoin yield has emerged as a central point of contention.Continue Reading CLARITY Act Proposed Ban on Stablecoin Yield Sparks Congressional Debate

On January 16, the DFPI entered into a consent order with a digital financial asset kiosk operator, based on DFPI’s allegations that the operator violated the Digital Financial Assets Law (DFAL), the California Consumer Financial Protection Law (CCFPL), and the Bank Secrecy Act (BSA). According to the consent order, the kiosk operator:Continue Reading DFPI Imposes Up to $1 Million Penalty on Crypto Kiosk Operator for Alleged Digital Financial Assets Law Violation

On December 31, the DFPI entered into a consent order with a residential mortgage lender to resolve allegations of unlicensed mortgage loan origination activity under the California Financing Law and the California Residential Mortgage Lending Act. The lender agreed to pay a $160,000 administrative penalty and to undertake additional compliance and review measures, while neither admitting nor denying the order’s findings.Continue Reading DFPI Orders Mortgage Lender to Pay $160,000 for Alleged Unlicensed Mortgage Loan Originator Activity

On January 13, the FTC announced that it had filed a combined motion in the U.S. District Court for the District of Nevada seeking to hold a payment processor and its executives in civil contempt for alleged violations of a previously entered stipulated permanent injunction and final order dating back to 2015.Continue Reading FTC Announces Civil Contempt Motion Seeking Receivership and Expanded Injunctive Relief for Alleged Order Violations

On January 14, the NCUA issued a letter outlining its supervisory priorities and examination program updates for 2026. The letter emphasizes risk-focused supervision, continued reliance on defined-scope examinations for smaller institutions, and adherence to a “no regulation by enforcement” approach, while reaffirming that examiners will continue enforcing all applicable consumer protection and safety and soundness requirements.Continue Reading NCUA Issues 2026 Supervisory Priorities Letter Emphasizing Safety, Soundness, and Risk-Focused Examinations

The Executive Order issued on January 20, 2026, titled “Stopping Wall Street From Competing with Main Street Homebuyers,” directs a coordinated federal response to limit the use of federally backed programs in facilitating the acquisition of single‑family homes by large institutional investors. Within 30 days of the Order, the Secretary of the Treasury—working in consultation with the Assistant to the President for Economic Policy—is required to develop formal definitions of both “large institutional investor” and “single‑family home” for purposes of implementation across federal agencies.Continue Reading Executive Order Targeting Single Family Home Ownership

On January 14, the DFPI announced a consent order requiring a crypto lending platform to pay $500,000 in penalties for alleged violations of the California Financing Law and the California Consumer Financial Protection Law. According to the regulator, the company offered crypto-backed consumer and commercial loans to California residents without obtaining a required finance lender license and without adequately considering borrowers’ ability to repay.Continue Reading DFPI Orders Crypto Lending Platform to Pay $500,000 for Alleged Unlicensed Lending and Underwriting Failures

On January 6, the U.S. Court of Appeals for the Eleventh Circuit largely affirmed an FTC enforcement action under Section 5 of the FTC Act, upholding summary judgment and a permanent injunction against a corporate payments provider. The FTC alleged that the company engaged in unfair or deceptive acts or practices (UDAP) in connection with fuel card products by misrepresenting discounts and card restrictions and by charging unauthorized add-on and late fees.Continue Reading Eleventh Circuit Affirms FTC Injunction Requiring Express Informed Consent for Fees

On January 8, the OCC announced a notice of proposed rulemaking to amend its national bank chartering regulations to make clear that national trust companies can engage in non-fiduciary activities. According to the OCC, the proposal would neither expand nor contract its chartering authority under the National Bank Act.Continue Reading OCC Proposes Clarifying Amendments to National Trust Bank Chartering Rule

President Donald Trump has announced a proposed cap on credit card interest rates and voiced support for legislation addressing credit card transaction fees. The statements were made in two separate posts on a social media platform. Continue Reading Trump Signals Credit Card Interest Rate Cap and Backs Credit Card Competition Act of 2026