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:
On June 20, the U.S. Supreme Court delivered its 6-3 opinion in McLaughlin Chiropractic Associates, Inc. v. McKesson Corporation. The case stemmed from McKesson Corporation’s allegedly unsolicited fax advertisements sent in violation of the Telephone Consumer Protection Act (TCPA). The controversy centered on whether district courts must adhere to the Federal Communication Commission’s (FCC) interpretation of the TCPA, as outlined in the Amerifactors order. This order excludes online fax services (which transmit fax messages as email attachments) from the definition of “telephone facsimile machine.” The district court ultimately held that it must treat the Amerifactors ruling as authoritative and decertified the plaintiffs’ class because they could not distinguish between faxes sent by an online service and those sent manually. The Ninth Circuit affirmed the district court’s decision. The Supreme Court held that the Hobbs Act does not bind district courts to an agency’s interpretation of a statute in civil enforcement proceedings. Justice Kavanaugh emphasized, “District courts must independently determine the law’s meaning under ordinary principles of statutory interpretation while affording appropriate respect to the agency’s interpretation.” The Supreme Court clarified that the Hobbs Act’s provision for “exclusive jurisdiction” to the courts of appeals pertains to pre-enforcement declaratory judgments, not enforcement proceedings. For more information, click here.
On June 20, President Trump signed Senator John Kennedy’s (R-LA) joint resolution of disapproval under the Congressional Review Act, effectively blocking an Office of Comptroller (OCC) rule that imposed additional regulatory burdens on the bank merger approval process. This Biden-era rule, which took effect on January 1, amended the Bank Merger Act of 1960, making it more challenging for the OCC to swiftly approve healthy bank mergers, particularly affecting small community banks. Kennedy, along with co-sponsors, including Senators Tim Scott, Bill Hagerty, Thom Tillis, Steve Daines, and Bernie Moreno, argued that the rule disproportionately harmed small and midsized banks by reducing access to credit and financial services. For more information, click here.
On June 18, the Consumer Financial Protection Bureau (CFPB) published an interim final rule in the Federal Register, extending compliance dates for its 2023 small business lending rule under the Equal Credit Opportunity Act (Regulation B). This extension comes in response to court orders in ongoing litigation, affecting the timeline for financial institutions to comply with data collection requirements for women-owned, minority-owned, and small businesses. The interim final rule extends the compliance dates (previously extended in June 2024 as discussed here) by approximately one year, allowing covered financial institutions additional time to prepare. For more information, click here.
On June 18, the U.S. Attorney’s Office for the District of Columbia announced the largest ever seizure of funds related to cryptocurrency confidence scams, filing a civil forfeiture complaint against more than $225.3 million in cryptocurrency linked to investment fraud and money laundering. The U.S. Secret Service and FBI utilized blockchain analysis to uncover a sophisticated network dispersing illicit proceeds across numerous cryptocurrency addresses to obscure their origins. The investigation identified hundreds of victims worldwide, with millions lost to fraudulent schemes. According to the FBI’s 2024 Internet Crime Report, cryptocurrency investment fraud resulted in more than $5.8 billion in losses last year. For more information, click here.
On June 18, the CFPB proposed an amendment to its 2013 rule concerning the Consumer Financial Civil Penalty Fund, established under the Consumer Financial Protection Act of 2010. This proposed rule aims to remove provisions related to the allocation of funds for consumer education and financial literacy programs, citing concerns over inadequate procedural guardrails and transparency. The CFPB invites public comments on this proposal until July 18, 2025. The Bureau’s decision reflects a shift in focus toward ensuring that funds are primarily used for payments to victims of activities subject to civil penalties, as originally intended by the act. For more information, click here.
On June 17, the U.S. Senate passed the bipartisan Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act with a vote of 68-30. The GENIUS Act, spearheaded by Senator Bill Hagerty (R-Tenn.) and cosponsored by Senators Kirsten Gillibrand (D-N.Y.), Cynthia Lummis (R-Wyo.), and Angela Alsobrooks (D-Md.), introduces a pioneering regulatory framework for payment stablecoins, aiming to enhance consumer protection and bolster national security. The bill successfully navigated the Senate Banking Committee in March, garnering support from all Republican members and five Democrats. This legislative victory marks a significant advancement in the regulation of digital assets. The legislation now heads to the House for consideration. For more information, click here.
On June 17, the Securities and Exchange Commission (SEC) announced the withdrawal of several proposed rules that were issued between March 2022 and November 2023. These proposals, which covered a range of topics including cybersecurity risk management, environmental, social, and governance (ESG) investment practices, and conflicts of interest associated with predictive data analytics, will not be finalized. One example of the items withdrawn includes proposed amendment to Rule 3b-16 under the Securities Exchange Act of 1934, which aimed to broaden the definition of “exchange” to include indications of trading interest. Another being that the SEC withdrew a proposed rule under the Investment Advisers Act of 1940 that would have expanded custody requirements to any assets under an adviser’s discretion. The SEC has stated that if it decides to pursue regulatory action in these areas in the future, it will issue new proposed rules. For more information, click here.
On June 16, the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board, and the OCC issued a joint request for public comment on potential ways to address payments fraud, with a particular emphasis on check fraud. Despite a decline in overall check usage, check fraud has seen a significant rise. Checks can be stolen, altered, or forged, and their physical nature makes them susceptible to theft. Moreover, checks contain sensitive information that can be exploited for other fraudulent activities. The U.S. Department of the Treasury reports a 385% increase in check fraud since the COVID-19 pandemic. The federal agencies are seeking input on five key areas to enhance collaboration and mitigate payments fraud. Stakeholders are invited to submit comments within 90 days from the date of publication of the request in the Federal Register. For more information, click here. For more information, click here.
On June 16, Paddle.com Market Limited and its subsidiary, Paddle.com, Inc., agreed to pay $5 million and face a permanent ban from processing payments for tech-support telemarketers, settling allegations by the Federal Trade Commission (FTC). The FTC accused Paddle of exploiting the U.S. credit-card system to facilitate deceptive foreign tech-support schemes, which targeted U.S. consumers, including older adults, and resulted in significant financial losses. The complaint detailed how Paddle opened merchant accounts under false pretenses, processed payments for unrelated third-party merchants, and enabled schemes like Restoro-Reimage to use fake virus alerts to impersonate known brands. Paddle was charged with violating the FTC Act, the Telemarketing Sales Rule, and the Restore Online Shoppers’ Confidence Act. The settlement requires Paddle to implement stringent client screening, disclose subscription terms clearly, and obtain consumers’ informed consent, while the $5 million payment will aid consumer redress related to the Restoro-Reimage scheme. For more information, click here.
On June 12, Acting CFTC Chair Caroline Pham spoke with Yahoo Finance at the Coinbase Annual Summit, emphasizing that crypto regulation under the Trump administration will not be lax despite expectations. Pham stated, “There is no easy street for anybody,” highlighting that while the CFTC supports innovation and growth, it will not tolerate illegal activities such as lying, cheating, and stealing. The CFTC, a key overseer of the derivatives market, is poised to regulate the spot markets for bitcoin and other digital assets that do not qualify as securities. As Congress nears passing legislation to regulate the crypto market, Pham’s remarks underscore the agency’s commitment to maintaining rigorous oversight. Additionally, Pham and Commissioner Kristin Johnson have announced plans to depart the CFTC, potentially leaving Brian Quintenz, a16z’s crypto policy head, as the sole commissioner if he receives Senate approval. For more information, click here.
On June 9, Republican Members of Congress Zach Nunn, Tom Emmer, Bryan Steil, and Byron Donalds sent a letter to Secretary of the Treasury Scott Bessent and Acting Commissioner of the Internal Revenue Service Michael Faulkender, expressing concerns over the federal tax treatment of digital asset network rewards earned through proof-of-work mining and proof-of-stake validation. The letter highlighted the unfair burden imposed by taxing these rewards at the moment of creation rather than upon sale or exchange. This approach, as outlined in IRS Notice 2014-21, results in double taxation and places U.S.-based digital asset infrastructure providers at a competitive disadvantage globally. The signatories urged the Treasury Department and IRS to revise their guidance to align with tax principles applied to similar industries, thereby supporting tax neutrality and enhancing U.S. leadership in the digital economy. For more information, click here.
On June 6, H.R. 3798, titled the Executive Order 14233 Act of 2025, was introduced in the House of Representatives by Congressman Tim Burchett (R-TN). This legislation seeks to codify Executive Order 14233, thereby granting it the force and effect of law. The executive order pertains to the establishment of a strategic Bitcoin reserve and a U.S. digital asset stockpile, reflecting a significant step toward formalizing the management and utilization of digital assets at the federal level. Following its introduction, the bill was referred to the Committee on Financial Services for further deliberation. For more information, click here.
State Activities:
On June 20, Texas Governor Greg Abbott signed Senate Bill 21 (SB21), officially establishing the Texas Strategic Bitcoin Reserve, a state-managed fund designed to hold Bitcoin as part of Texas’s long-term financial assets. This reserve operates independently from the state’s general treasury system, aiming to enhance financial resilience and serve as a hedge against inflation. According to the bill, only assets with a market capitalization exceeding $500 billion, currently only Bitcoin, are eligible for inclusion. The reserve will be overseen by the Texas Comptroller of Public Accounts and guided by an advisory committee of three crypto investment professionals. In addition to direct purchases, the reserve can grow through forks, airdrops, investment gains, or public crypto donations, with a public report on its holdings and performance issued biennially. SB21 follows the signing of House Bill 4488, which protects the reserve from being absorbed into the state’s general revenue fund, insulating it from shifting budget priorities. Texas joins Arizona and New Hampshire in approving a Bitcoin reserve law but is the first to commit public funds and establish a separate structure for Bitcoin holdings. For more information, click here.
On June 20, Texas Governor Greg Abbott signed Texas Bill SB140 into law, significantly amending the Texas Business & Commerce Code (TBCC) by expanding the Texas Mini-TCPA statute. This legislation introduces a private right of action under the Deceptive Trade Practices Act (DTPA), allowing consumers to seek treble damages, mental anguish awards, and attorney’s fees for telemarketing violations. The bill broadens the definition of telephone solicitations to include text messages and other electronic communications, potentially increasing the scope for lawsuits. Effective September 1, the law removes procedural barriers, enabling consumers to directly pursue claims for violations such as noncompliance with call-hour restrictions and unauthorized use of automated dialing devices. Additionally, the law clarifies that multiple recoveries for the same violation will not limit future claims. For more information, click here.
On June 17, Connecticut enacted Public Act No. 25-155, titled “An Act Concerning Earned but Unpaid Wage or Salary Income Advances,” to regulate the provision of advances on earned but unpaid wages or salaries to Connecticut borrowers. Effective October 1, the act defines key terms and sets forth requirements for providers of such advances, including licensing obligations, disclosure mandates, and limitations on finance charges. The act prohibits certain loan conditions, such as excessive APRs and prepayment penalties, and requires providers to offer at least one no-cost advance option per transaction. It also establishes measures to prevent borrowers from receiving multiple advances on the same earnings from different providers and mandates the reimbursement of any fees incurred due to provider errors. For more information, click here.
On June 17, Oregon Governor Tina Kotek signed Senate Bill 605, a legislative measure aimed at reforming medical debt reporting practices. The act amends ORS 646.608 and 646A.677 to enhance consumer protections related to medical debt. It prohibits hospitals, nonprofit hospital-affiliated clinics, and debt collectors from reporting medical debt to consumer reporting agencies, thereby preventing such debts from appearing in consumer reports. The act also limits the interest rates that can be charged on medical debts and mandates financial assistance screenings for patients before debts are transferred to collectors. Violations of these provisions are deemed unlawful practices under Oregon law, with potential for courts to declare such debts void and uncollectible. For more information, click here.