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 October 16, during the 2025 D.C. Fintech Week, Federal Reserve Governor Michael Barr addressed the accelerating pace of payments innovation, highlighting the potential and risks associated with new technologies like stablecoins. He emphasized the benefits of stablecoins in enhancing payment efficiency, particularly for cross-border transactions, remittances, trade finance, and multinational cash management. However, Barr also cautioned about the risks, including financial stability concerns and compliance with anti-money laundering regulations. He discussed the GENIUS Act, which aims to mitigate these risks by regulating stablecoin reserve assets and ensuring robust guardrails. Barr underscored the importance of regulatory implementation to protect consumers and the financial system, suggesting that stablecoins, if properly regulated, could significantly improve the payment landscape. For more information, click here.
On October 16, the Financial Stability Board (FSB) released a Thematic Peer Review highlighting significant gaps and inconsistencies in the implementation of its Global Framework for Crypto-Asset Activities. The review reveals that while jurisdictions have made progress in regulating crypto-asset markets, the regulation of global stablecoin arrangements lags behind, posing potential risks to financial stability and the development of a resilient digital asset ecosystem. The FSB urges jurisdictions to prioritize full and consistent implementation to minimize regulatory arbitrage and improve oversight of the global crypto-asset market. The report calls for enhanced cross-border cooperation and coordination to address these challenges, emphasizing the need for comprehensive and consistent regulatory frameworks. Additionally, the International Organization of Securities Commissions (IOSCO) released a complementary review on the implementation of its Crypto and Digital Asset framework, underscoring the importance of coordinated global efforts in this rapidly evolving sector. For more information, click here.
On October 15, the Office of the Comptroller of the Currency (OCC) announced the conditional approval of a de novo national bank charter for Erebor Bank, N.A., based in Columbus, Ohio. This marks the first preliminary conditional approval for a new bank under Comptroller Jonathan Gould’s leadership, reflecting the OCC’s commitment to fostering a dynamic and diverse federal banking system. The approval underscores the OCC’s openness to banks engaging in digital asset activities, provided they are conducted safely and soundly. Erebor Bank’s charter approval is part of the OCC’s broader strategy to support innovative financial services approaches, ensuring the federal banking system’s continued relevance and strength. For more information, click here.
On October 15, Christopher Waller, a member of the Board of Governors of the Federal Reserve System, delivered remarks at DC Fintech Week in Arlington, Virginia, focusing on the rapid advancement of artificial intelligence (AI) and its implications. Waller highlighted the dual perspectives on AI, with some viewing it as a threat to jobs and equality, while others see it as a catalyst for unprecedented growth and innovation. He emphasized that technological change, including AI, is a constant and disruptive force that can alter power dynamics and improve productivity and living standards. Waller noted that while AI could lead to job displacement, it also holds the potential to create new opportunities and enhance efficiency. He advocated for embracing technological disruption to realize its benefits, stressing the importance of managing risks without stifling innovation. Waller concluded by underscoring the need for policymakers to facilitate adaptation and support the integration of AI into the economy, ensuring that its long-term benefits outweigh short-term challenges. For more information, click here.
On October 15, Sarah Breeden delivered a speech at DC Fintech Week, highlighting the Bank of England’s efforts to foster responsible innovation in finance amidst rapid technological change. She emphasized the transformative potential of tokenization and Distributed Ledger Technology (DLT) in both retail and wholesale financial services, which can streamline transactions and enhance liquidity. Breeden announced the bank’s forthcoming consultation on a stablecoin regime aimed at integrating stablecoins into “real world” payments, underscoring the need for industry collaboration to drive innovation. She detailed the bank’s initiatives, including the Digital Securities Sandbox, to support the development of tokenized markets and ensure interoperability across jurisdictions. Breeden stressed the importance of establishing a robust regulatory framework to maintain monetary and financial stability while embracing new technologies. For more information, click here.
On October 14, Congressman Troy Downing (R-MT) introduced the Retirement Investment Choice Act, which aims to codify President Trump’s Executive Order 14330, thereby democratizing access to alternative investments for 401(k) investors. This legislation directs the Department of Labor and the Securities and Exchange Commission to reduce regulatory barriers that currently prevent investments such as private equity, real estate, and digital assets from being included in 401(k) retirement plans. Supported by several congressional cosponsors, the bill seeks to expand investment opportunities for American retirement savers, enhancing their financial security. The initiative follows President Trump’s executive order signed in August 2025, which encourages a reexamination of previous guidance on alternative assets in retirement plans. For more information, click here.
On October 14, an indictment was unsealed in a federal court in Brooklyn, New York, charging Cambodian national Chen Zhi, also known as Vincent, the founder and chairman of Prince Holding Group, with wire fraud conspiracy and money laundering conspiracy. The charges stem from his alleged operation of forced-labor scam compounds in Cambodia, where individuals were coerced into executing cryptocurrency fraud schemes, known as “pig butchering” scams, that defrauded billions from victims globally. The U.S. Department of Justice also filed a historic civil forfeiture complaint against approximately $15 billion in Bitcoin linked to these schemes, marking the largest forfeiture action in its history. The indictment highlights the extensive criminal network allegedly orchestrated by Chen Zhi, involving forced labor, money laundering, and investment fraud, and underscores the U.S. government’s commitment to dismantling such operations and recovering stolen assets. The Department of the Treasury and the UK have also imposed sanctions on Prince Group and associated entities. For more information, click here.
On October 10, the European Banking Authority (EBA) published two Opinions in response to the European Commission’s (EC) proposed amendments to the draft Regulatory Technical Standards (RTS) under the Markets in Crypto-Assets Regulation (MiCA). The EBA expressed concerns that the EC’s amendments, which could allow investments into non-highly liquid financial instruments and relax certain regulatory limits, are inconsistent with MiCA’s prudential framework. These changes could introduce significant liquidity risks and open avenues for regulatory arbitrage. The EBA’s Opinions underscore the need for consistent implementation of MiCA’s framework to ensure financial stability and effective oversight of crypto-asset markets. The EBA’s response is part of its ongoing scrutiny of the MiCA framework, particularly concerning liquidity, credit, and concentration risks. For more information, click here.
On October 10, the Financial Stability Board (FSB) released a report advising authorities on monitoring the adoption of AI in the financial sector. The report identifies various indicators to track AI adoption and associated vulnerabilities, emphasizing the challenges posed by data gaps and the lack of standardized taxonomies. It highlights the critical role of third-party service providers in AI deployment, noting the risks of dependency on a few key suppliers, particularly in the context of generative AI. The FSB encourages national authorities to enhance their monitoring strategies using these indicators and aims to facilitate alignment through cross-border cooperation. This initiative builds on the FSB’s 2024 report on AI’s financial stability implications, underscoring the need for robust oversight in the rapidly evolving AI landscape. For more information, click here.
On October 9, Secretary of the Treasury Scott Bessent addressed the Fed Community Bank Conference, emphasizing the Trump Administration’s commitment to revitalizing community banks amid a government shutdown. Bessent highlighted the detrimental impact of post-crisis regulations on community banks, which have seen a significant decline since 2010. He outlined the administration’s efforts to roll back regulatory excesses from the previous administration, aiming to empower community banks and foster “Parallel Prosperity,” where Main Street and Wall Street grow together. Bessent detailed reforms such as reducing regulatory burdens, modernizing illicit finance regulations, and supporting legislative efforts to enhance community bank competitiveness. He urged community bankers to seize the opportunity to expand their market share and drive economic growth, positioning them as pivotal players in America’s economic resurgence. For more information, click here.
On October 9, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) announced the renewal of its Geographic Targeting Orders (GTOs), effective October 10, 2025. These orders mandate U.S. title insurance companies to identify the natural persons behind shell companies involved in non-financed residential real estate purchases. This renewal comes as FinCEN postponed the reporting requirements of the Anti-Money Laundering Regulations for Residential Real Estate Transfers Rule until March 1, 2026. The GTOs, set to expire on February 28, 2026, continue to cover major metropolitan areas across several states, maintaining the purchase price threshold at $300,000, except for Baltimore, where it is $50,000. The GTOs aim to provide crucial data on real estate purchases potentially linked to illicit activities. For more information, click here.
On October 9, the Federal Reserve Board announced plans to expand the operating days of two major large-value payment services, the Fedwire® Funds Service and the National Settlement Service (NSS), to include Sundays and weekday holidays. This expansion, set to be implemented no earlier than 2028, aims to enhance operational readiness and industry preparedness. Currently, both services operate Monday through Friday, excluding holidays. Once the expansion is in place, they will operate from Sunday through Friday, maintaining their current daily operating hours — 22 hours for Fedwire and 21.5 hours for NSS. The Board will continue to assess the demand for potentially extending operations to seven days a week and will seek public input if such a proposal is considered. This change does not affect the Fedwire Securities Service or the Federal Reserve’s retail services, including FedACH or FedNow® Service. For more information, click here.
On October 8, Federal Reserve Governor Michael S. Barr addressed the 2025 Community Banking Research Conference in St. Louis, Missouri, emphasizing the vital role community banks play in strengthening local communities. He highlighted the unique advantages community banks have in understanding and serving their customers, contrasting them with larger banks’ standardized processes. Barr discussed the challenges and opportunities presented by technological advancements, particularly artificial intelligence, which could transform community banking by enhancing customer service and fraud detection capabilities. He also expressed concern over recent regulatory rollbacks for large banks, warning they could expose community banks to increased risks. Barr concluded by commending community bankers for their resilience and adaptability, underscoring the importance of responsible regulation tailored to the size and risk profile of community banks to ensure their continued success and contribution to local economies. For more information, click here.
On October 7, during his keynote address at the 25th Annual A.A. Sommer, Jr. Lecture on Corporate, Securities, and Financial Law, Paul S. Atkins, Chairman of the U.S. Securities and Exchange Commission (SEC), emphasized the importance of the Wells process in the SEC’s enforcement program. He described the Wells process as a cornerstone of fairness, providing potential respondents or defendants with the opportunity to present their case before the SEC decides on enforcement actions. Atkins highlighted the process as an extension of due process and constitutional rights, crucial for protecting individuals from potential overreach by a powerful government agency. He noted that Wells submissions can significantly influence the trajectory of enforcement actions by offering a different perspective on the facts and legal theories involved. Atkins advocated for improvements to the process, emphasizing the need for transparency, accuracy, and good faith engagement from both the SEC staff and respondents to ensure fair and effective enforcement of securities laws. For more information, click here.
State Activities:
On October 13, California Governor Gavin Newsom approved Assembly Bill No. 853, known as the California AI Transparency Act, which amends and adds sections to the Business and Professions Code concerning artificial intelligence. This legislation mandates that creators of generative AI systems with over 1,000,000 monthly users provide an AI detection tool at no cost, allowing users to verify if content was AI-generated and access system provenance data. The Act’s implementation is delayed until August 2, 2026, with additional requirements for large online platforms and capture device manufacturers to take effect in 2027 and 2028, respectively. These include embedding provenance data in content and providing users with options for latent disclosures. The bill aims to enhance transparency and accountability in AI-generated content while imposing civil penalties for non-compliance.For more information, click here.
On October 11, California Governor Gavin Newsom signed Senate Bill No. 822 into law, amending the Code of Civil Procedure to address the treatment of digital financial assets under the Unclaimed Property Law (UPL). This legislation clarifies that digital financial assets are considered intangible property subject to escheatment to the state if unclaimed. It outlines requirements for notifying apparent owners of such assets, including the use of a form to restart the escheatment period. The bill also specifies the process for transferring escheated digital assets to the State Controller and authorizes the Controller to manage these assets, including converting them to fiat currency if necessary. The law aims to ensure proper management and safekeeping of digital financial assets, providing a framework for their eventual return to rightful owners. For more information, click here.
On October 10, Massachusetts finalized amendments to its regulations concerning small loans, truth in lending, and mortgage licensing, which took effect immediately. The amendments to 209 CMR 20.00 enhance the Commissioner of Banking’s authority to assess the financial responsibility of applicants for small loan licenses and eliminate a streamlined application process for certain mortgage lenders. Additionally, licensees must now file annual reports and promptly notify the commissioner of significant financial changes. Amendments to 209 CMR 32.00 clarify the timing for variable-rate adjustment notices, aligning state requirements with federal standards. Changes to 209 CMR 42.00 require mortgage lenders and brokers to disclose their NMLS unique identifier at key transaction points, ensuring greater transparency in the mortgage process. For more information, click here.
On October 10, California Governor Gavin Newsom signed Assembly Bill 483 into law, introducing new regulations on early termination fees in fixed term installment contracts. This legislation applies to contracts entered into or modified on or after August 1, 2026, and prohibits the use of termination fees unless specific conditions are met. Among other things, businesses must ensure that any fixed term installment contract includes a clear and conspicuous disclosure of early termination fees. This can be either the total cost or the formula used to calculate the fee and the highest possible early termination fee under the contract. The bill prohibits charging a fee unless these disclosures are made at the time of entering the initial contract. The legislation also imposes a cap on early termination fees, limiting them to 30% of the total contract value. This cap is designed to prevent excessive fees and ensure fairness in consumer contracts. Although this law seems to be aimed primarily at contracts under which consumers sign up for a service that is to be provided over a period of time and that can be cancelled early for a fee (e.g., Internet or subscription services), the exact scope is not entirely clear. For more information, click here.
On October 10, the Washington State Department of Financial Institutions issued guidance to state-chartered and licensed entities in response to the ongoing federal government shutdown. Recognizing the financial strain on Washington consumers, particularly federal employees and contractors, the Department encouraged these institutions to offer assistance, similar to measures taken during the COVID-19 pandemic. The Department assured that examiners would not criticize institutions for working with affected individuals during this challenging period. Financial resources for those impacted were made available, and institutions were urged to maintain open communication with the Department for any inquiries. For more information, click here.
On October 8, California Governor Gavin Newsom signed Senate Bill No. 361 into law, amending the Civil Code to enhance privacy protections related to data brokers. This legislation requires data brokers to provide additional information to the California Privacy Protection Agency, including whether they collect consumers’ names, dates of birth, ZIP Codes, email addresses, phone numbers, login or account information, government identification numbers, mobile advertising, connected television, or vehicle identification numbers, citizenship data, union membership status, sexual orientation status, gender identity and gender expression data, and biometric data. Data brokers must also disclose whether this data has been shared with foreign actors, governments, or developers of generative AI systems. The bill mandates that data brokers process denied deletion requests within 45 days and establishes an accessible deletion mechanism for consumers to request the removal of their personal information. Furthermore, the bill prohibits the public disclosure of certain data collection details on the agency’s website, reinforcing the California Privacy Rights Act’s goals of strengthening consumer privacy and transparency. For more information, click here.
On October 8, Minnesota and New Hampshire joined the Consortium of Privacy Regulators, a bipartisan initiative aimed at implementing and enforcing state privacy laws nationwide. This expansion brings the total number of participating privacy regulators to ten, reflecting a growing commitment to consumer data protection across jurisdictions. Both states recently enacted comprehensive privacy laws similar to those in California, granting consumers rights to manage their personal data. The collaboration facilitates shared expertise and resources among states, enhancing the enforcement of privacy rights. For more information, click here.
On October 6, California Governor Gavin Newsom approved Senate Bill No. 362, which amends the Financial Code to enhance transparency in commercial financing disclosures. This legislation prohibits commercial financing providers from using terms like “interest” or “rate” in a misleading manner and mandates the use of “annual percentage rate” (APR) in specified contexts. The bill repeals certain provisions subjecting providers to the California Financing Law (CFL) and instead aligns violations with either the CFL, if that violation relates to a commercial financing transaction subject to the CFL, or otherwise the California Consumer Financial Protection Law. For more information, click here.
On October 6, the U.S. Supreme Court declined to review the Fox decision, leaving unresolved questions about the retroactive application of the Foreclosure Abuse Prevention Act (FAPA). This decision has shifted the focus to the New York State Court of Appeals where oral argument was heard on October 16, and potentially to the U.S. Court of Appeals for the Second Circuit. The dispute began with a mortgage made by the defendant in 2008. After a foreclosure action by the plaintiff bank’s predecessor was dismissed, the plaintiff bank filed a new action under New York Civil Practice Law and Rules (CPLR) § 205(a), which allows for a six-month window to refile a case after a non-merits dismissal. While the second foreclosure action was pending, the New York Legislature enacted FAPA in December 2022, imposing stricter limitations on refiling foreclosure proceedings after a dismissal. The First Department of the New York State Supreme Court, Appellate Division ruled that the bank’s foreclosure was time-barred under FAPA’s new regulations. After the Court of Appeals rejected the appeal, the bank petitioned the U.S. Supreme Court, arguing that the retroactive application of FAPA violated the Takings Clause of the Fifth Amendment and due process rights. The Supreme Court’s denial of certiorari leaves the question of FAPA’s retroactive application to be decided by state and federal courts. For more information, click here.
On October 6, California Governor Gavin Newsom signed Senate Bill No. 825 into law, amending Section 90002 of the Financial Code to enhance consumer financial protection. This legislation clarifies that while certain licensed entities, such as escrow agents and finance lenders, are exempt from the California Consumer Financial Protection Law (CCFPL), this exemption does not prevent the Commissioner of Financial Protection and Innovation from enforcing provisions against deceptive or abusive practices. The bill ensures that the authority of the CCFPL can be applied to uphold consumer rights, even for those entities operating under specific licenses. For more information, click here.