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 December 1, the Financial Crimes Enforcement Network’s (FinCEN) final rule takes effect, requiring certain persons involved in real estate closings and settlements to file a streamlined “Real Estate Report” for non‑financed transfers of U.S. residential real property to legal entities and trusts, nationwide. Note, transfers to individuals are not covered. The reporting obligation follows a cascading hierarchy (beginning with the closing/settlement agent) with an option to designate another eligible participant to file, and financial institutions that already have anti-money laundering (AML) programs are excluded as reporting persons. Reports must identify the reporting person; the transferee entity or trust and its beneficial owner(s); any signing individual; the transferor; the property; key payment details (including method, account information, and whether hard‑money/private credit was used); and total consideration, and are due by the later of 30 days after closing or the last day of the month following closing. Reporting persons may reasonably rely on information provided by others absent red flags, and beneficial ownership information may be relied on if certified in writing by the transferee or its representative. The rule includes targeted exceptions, including transfers resulting from death; divorce or civil union dissolution; bankruptcy; court‑supervised transfers; no‑consideration transfers by an individual (alone or with a spouse) to a trust where that individual or spouse is the settlor/grantor; transfers to qualified intermediaries in 1031 exchanges; and transfers where no reporting person is involved. Recordkeeping is limited to retaining any beneficial ownership certification and any designation agreement for five years. The rule is intended to increase transparency and curb the use of opaque entities and trusts to launder illicit funds through residential real estate. For more information, click here.
On November 28, the Federal Deposit Insurance Corporation (FDIC) announced that its board of directors has maintained the designated reserve ratio (DRR) for the Deposit Insurance Fund at 2% for 2026, pursuant to the Federal Deposit Insurance Act. The agency published the notice as required by 12 U.S.C. 1817(b)(3)(A)(i) and noted no amendment to 12 CFR 327.4(g) is needed since the DRR is unchanged. For more information, click here.
On November 28, the FDIC also issued a final rule delaying the compliance date for insured depository institutions to display the official FDIC digital sign on digital deposit‑taking channels and ATMs (12 CFR 328.4 and 328.5) from March 1, 2026, to January 1, 2027, to provide certainty, reduce burden, and avoid potential consumer confusion while the agency considers proposed amendments to these requirements. This follows earlier compliance date extensions in October 2024 and March 2025, and the delay is subject to any changes adopted in future rulemaking. For more information, click here.
On November 26, the UK Financial Conduct Authority’s (FCA) David Geale outlined the regulator’s plan to build a trusted, competitive and innovative regime for cryptoassets and stablecoins, noting the FCA is “open for business” and urging firms to prepare for authorization under forthcoming rules. The FCA has issued major consultations on stablecoin issuance and crypto custody, prudential requirements, and cross‑cutting standards, with further papers due on market abuse, admissions and disclosure, consumer duty, and reporting. It will also extend operational resilience expectations to all crypto firms, balance “same risk, same regulation” with crypto‑specific adaptations, and prioritize transparency and consumer protection. To support innovation, the FCA expanded its Regulatory Sandbox (including a new stablecoin cohort and a RegTech disclosure pilot), invited applications through January 18, and announced in‑person stablecoin policy sprints for March. Geale emphasized coordination with the Bank of England and international bodies, the Transatlantic Taskforce with the U.S., and the UK’s progress relative to U.S. proposals, urging firms to engage via pre‑application meetings as the FCA finalizes a proportionate, agile regime aligned with the National Payments Vision and developments like open banking, tokenized deposits, and potential central bank digital currency. For more information, click here.
On November 25, the Federal Reserve Board extended the comment period for its November 18 notice of proposed rulemaking on enhancing transparency and public accountability of supervisory stress test models and scenarios, and related amendments to the capital planning/Stress Capital Buffer rule, Enhanced Prudential Standards, and Regulation LL, moving the deadline from January 22, 2026, to February 21, 2026. Commenters should identify submissions with Docket No. R‑1873 and RIN 7100‑AH05 and may file via the Board’s proposals website, email, fax, or mail, with all comments posted to the Board’s website. For more information, click here.
On November 25, the Office of the Comptroller of the Currency (OCC) released its schedule of Community Reinvestment Act (CRA) evaluations for the first and second quarters of 2026 and invited public input on the CRA activities of national banks and federal savings associations slated for review. Commenters are encouraged to submit feedback either directly to the listed banks at the mailing addresses provided in the schedule or to the applicable OCC supervisory office before the month the evaluation is scheduled, and the OCC will consider all comments received before the close of the CRA evaluation. For more information, click here.
On November 25, the FDIC Board approved a final rule updating select regulatory thresholds to reflect historical inflation, and establishing ongoing inflation indexing, including thresholds in 12 CFR part 363 governing annual independent audits, management reporting, and related audit committee requirements. The changes are intended to preserve thresholds in real terms, avoid unintended policy effects, and deliver meaningful burden relief for community banks, with immediate relief beginning January 1, 2026, for institutions that will no longer be subject to part 363 under the updated thresholds. For more information, click here.
On November 25, Commodity Futures Trading Commission (CFTC) Acting Chairman Caroline Pham announced that the Market Participants Division issued an interpretation clarifying when futures commission merchants may post customer‑owned securities, and securities purchased with customer funds, with foreign brokers and clearing organizations to margin foreign futures and options positions under Part 30, providing legal certainty around CFTC Regulation 30.7. The interpretation, issued in response to a Futures Industry Association request, is expected to unlock more than $22 billion in collateral, reduce market participants’ costs, and address competitive disadvantages for U.S. firms accessing foreign markets, thereby promoting American competitiveness. For more information, click here.
On November 25, Pham invited nominations by December 8 for the CFTC CEO Innovation Council, highlighting the agency’s recent advances on innovation and market structure — such as the Crypto CEO Forum, prediction markets, perpetual contracts, and 24/7 trading — and its ongoing “Crypto Sprint” through August 2026 to implement President’s Working Group recommendations (including listed spot crypto trading, tokenized collateral and stablecoins, and rulemaking to enable blockchain-based market infrastructure). Pham called on CEOs to help shape responsible regulation for expanded markets and products, and asked the public to submit nominations with the nominee’s name, title, affiliation, qualifications, suggested priority topics, and the nominator’s contact information via email to CEOcouncil@cftc.gov using the subject “CEO Innovation Council Nomination,” noting submissions do not guarantee selection. For more information, click here.
On November 25, the FDIC, Federal Reserve, and OCC finalized a rule modifying leverage capital standards for the largest and most systemically important banking organizations to serve as a backstop to risk-based requirements and avoid discouraging lower‑risk activities such as U.S. Treasury market intermediation. The standards are calibrated to each organization’s systemic risk, and for depository institution subsidiaries the enhanced supplementary leverage ratio is capped at 1% (total leverage requirement no more than 4%) to reflect differences between holding companies and their banks and to ensure the leverage backstop functions appropriately in stress, with conforming changes to requirements tied to leverage (including TLAC and long‑term debt). The agencies expect overall capital levels to remain broadly unchanged, with aggregate Tier 1 capital for affected holding companies falling by less than 2% and larger reductions at bank subsidiaries generally not available for external distribution. The rule takes effect April 1, 2026, with optional early adoption beginning January 1, 2026. For more information, click here.
On November 25, the FDIC, Federal Reserve, and OCC proposed revisions to the Community Bank Leverage Ratio (CBLR) framework to ease burden and enhance flexibility for community banks while maintaining strong capital standards, including lowering the CBLR to 8% from 9% and extending the grace period to regain compliance from two to four quarters. The agencies emphasized that the CBLR would remain comparable to or higher than risk-based requirements and at least double the minimum leverage ratio for non‑opt‑in banks, tailoring the framework to community banks’ business models and risk profiles, with comments due 60 days after Federal Register publication. For more information, click here.
On November 25, the European Central Bank’s (ECB) Financial Stability Review flagged systemic vulnerabilities arising from euro area banks’ tight linkages with the nonbank financial intermediation (NBFI) sector, highlighting two main risk channels: (1) short‑term, flight‑prone liabilities from NBFIs (notably deposits and repos) that are highly concentrated in a handful of Global Systemically Important Banks (G‑SIBs) and, in some cases, supported by relatively low liquidity buffers; and (2) banks’ provision of leverage to NBFIs pursuing leveraged strategies (hedge funds, nonbank lenders, real estate funds), primarily via collateralized short‑maturity repo and credit lines, which creates counterparty and step‑in risks and is again concentrated in G‑SIBs. While banks often run matched books and hold largely low‑credit‑risk securitization bonds (a significant share in USD), asset‑price shocks could trigger NBFI outflows and bank deleveraging, amplifying fire‑sale dynamics. The ECB judges the overall scale of these linkages as contained but stresses that G‑SIBs’ loss‑absorbing capacity is critical in stress, and notes material data gaps, especially on leveraged NBFIs outside the EU, that warrant further work. For more information, click here.
On November 25, the BIS announced that Tommaso Mancini‑Griffoli, currently assistant director in the IMF’s Monetary and Capital Markets Department overseeing payments, currencies and market infrastructures, has been appointed head of the BIS Innovation Hub for a five‑year term starting March 1, 2026, joining the BIS Executive Committee to lead central‑bank collaboration on financial technology and drive stakeholder engagement. The Hub, with centers in Frankfurt/Paris, Hong Kong SAR, London, Singapore, Stockholm, Switzerland and Toronto and a strategic partnership with the U.S. Federal Reserve, advances projects to bolster the resilience and efficiency of the global financial system, monitors tech trends, complements BIS research, and coordinates a network of more than 200 central bank innovation experts. He succeeds Cecilia Skingsley (now county governor of Stockholm), with BIS Deputy General Manager Andréa Maechler serving as acting head until his arrival. For more information, click here.
On November 24, the plaintiffs in National Treasury Employees Union (NTEU) v. Consumer Financial Protection Bureau (CFPB) filed a motion to clarify the existing injunction, asking the court to confirm that the CFPB may not justify noncompliance by declining to request funds from the Federal Reserve Board (Fed) and that “combined earnings” under 12 U.S.C. § 5497(a)(1) refers to the Federal Reserve System’s total earnings, not a net figure reduced by interest expense. The motion squarely targets the CFPB’s position advanced in a U.S. Department of Justice (DOJ) notice and the Office of Legal Counsel (OLC) opinion that the CFPB’s primary statutory funding stream is unavailable while the Federal Reserve is operating at a loss. The plaintiffs contend the statutory text, structure, and history confirm that “combined earnings” means the gross earnings of the Federal Reserve System, from which the Fed “shall transfer” amounts reasonably necessary for the CFPB to carry out its authorities up to the statutory cap. On that reading, the plaintiffs argue that the CFPB cannot precipitate a funding lapse by declining to request transfers, and the Antideficiency Act cannot excuse compliance with the injunction when the statutory funding mechanism remains available. In response, Judge Amy Berman Jackson issued a minute order directing the parties to file submissions by November 26 identifying which provisions of the preliminary injunction they believe remain in force and addressing the court’s authority to enforce those provisions in light of the District of Columbia Circuit’s August 15 opinion and the pending petition for rehearing en banc. For more information, click here.
On November 24, Federal Communications Commission (FCC) Chairman Brendan Carr announced the commission’s return to full operations after the shutdown, thanked staff for their professionalism, and previewed a December agenda that includes closing a robocall enforcement gap by requiring all providers with direct access to phone numbers, not just new applicants, to certify and disclose compliance, public safety, and national security information; modernizing and clarifying rules for low-power television (LPTV) to better reflect industry changes and help stations serve local communities; and an “In Re: Delete, Delete, Delete” clean-up that will remove 38 obsolete rules covering outdated technologies like analog cable receivers and long‑gone cordless phones. For more information, click here.
On November 24, the Securities and Exchange Commission’s (SEC) Division of Corporation Finance stated it would not recommend enforcement action if Fuse Crypto Limited offers and sells its Tokens without Securities Act Section 5 registration and does not register the Tokens under Exchange Act Section 12(g), provided the transactions occur exactly as described in Fuse’s November 19, 2025, submission and in reliance on counsel’s opinion. The staff emphasized that its position is limited to the facts presented, could change with different facts or conditions, and reflects only an enforcement stance rather than a legal conclusion. For more information, click here.
On November 21, Chairman French Hill and Republican members of the U.S. House Financial Services Committee sent two letters to Federal Reserve Vice Chair for Supervision Michelle Bowman, OCC Comptroller Jonathan Gould, and FDIC Acting Chairman Travis Hill: one urging regulators to tailor Enhanced Prudential Standards for Category II–IV banks and index key regulatory thresholds to economic growth to avoid a one-size-fits-all approach, and another calling for withdrawal of four supervisory guidance documents — leveraged lending, model risk management, third‑party risk management, and the OCC’s venture funding bulletin — arguing these impose unwarranted burdens that restrict credit, hinder innovation, and slow growth without materially enhancing safety, and that rescinding them would restore proper regulatory process and enable more effective, risk-based oversight. For more information, click here and here.
State Activities
On November 25, MoonPay announced that the New York State Department of Financial Services authorized MoonPay Trust Company, LLC to provide digital asset custody and over‑the‑counter trading services, strengthening its position as a regulated infrastructure provider for institutional and enterprise clients. The trust charter, obtained alongside MoonPay’s existing NYS BitLicense, places the firm among a select group holding both approvals, expands its regulated footprint across jurisdictions, and may offer a pathway for future stablecoin issuance subject to NYDFS approval. MoonPay said the charter underscores its commitment to high standards of compliance, security, and governance as it bridges traditional and digital finance. For more information, click here.
On November 25, the New York Court of Appeals issued a pair of decisions — Art. 13 LLC and Van Dyke — that provide definitive guidance on the hotly contested and heavily litigated issue of the Foreclosure Abuse Prevention Act’s (FAPA) reach. In both cases, New York’s high court confirmed that FAPA applies retroactively to foreclosure actions where a final judgment of foreclosure and sale has not been enforced, and rejected all constitutional challenges to the statute. For more information, click here.
On November 25, the National Association of Attorneys General sent a letter on behalf of a bipartisan coalition of 36 state attorneys general urging congressional leaders to reject a proposed federal moratorium that would block states from enacting or enforcing artificial intelligence (AI) laws. Highlighting AI’s promise alongside significant risks, particularly to children and seniors, the coalition points to existing state efforts that curb deepfakes and explicit AI‑generated material, prohibit deceptive practices targeting voters and consumers, safeguard renters from algorithmic rent‑setting, deter spam calls and texts, require disclosures for AI interactions, and protect identity in endorsements and AI‑generated content, noting that most of the 20 states with comprehensive privacy laws already allow opt‑outs from high‑risk automated decision‑making and mandate risk assessments. The attorneys general contend broad federal preemption would erode states’ ability to respond swiftly to emerging harms and instead urge collaboration on thoughtful federal regulation that preserves public safety while fostering innovation, with 36 jurisdictions, including California, New York, Illinois, Washington, and the District of Columbia, signing the letter. For more information, click here.