To keep you informed of recent activities, below are several of the most significant federal events that have influenced the Consumer Financial Services industry over the past week.
Federal Activities:
On January 30, the Federal Trade Commission (FTC) submitted to the Office of Management and Budget (OMB) two significant Advance Notices of Proposed Rulemaking (ANPRMs) — one to revisit the long‑standing Negative Option Rule governing prenotification negative option plans, and another to address undisclosed and deceptive fees in the rental housing market. In the rental housing context, the ANPRM follows enforcement activity against hidden “junk fees” and reflects the FTC’s view that landlords and property managers, including single‑family rental operators, must provide transparent, upfront pricing. The negative option ANPRM confirms that, notwithstanding recent procedural setbacks to prior “click‑to‑cancel” efforts, the commission remains committed to curbing practices that make it difficult for consumers to identify, understand, or cancel recurring charges. Once OMB completes its review and the ANPRMs are published in the Federal Register, a public comment period will commence. For more information, click here and here.
On January 30, FTC Chairman Andrew N. Ferguson announced the appointment of Levi Swank, a seasoned consumer protection litigator from private practice in Washington, D.C., as deputy director of the FTC’s Bureau of Consumer Protection, highlighting his background representing clients in enforcement matters, class actions, and investigations, his academic credentials from the University of Virginia School of Law (where he was an executive editor of the Virginia Law Review and graduated Order of the Coif) and Patrick Henry College, and his clerkship with Judge Alice M. Batchelder on the U.S. Court of Appeals for the Sixth Circuit, while reiterating the FTC’s mission to promote competition, protect and educate consumers, and encouraging the public to use its online resources to learn about and report fraud, scams, and unfair business practices. For more information, click here.
On January 30, the U.S. Department of Education published a Notice of Proposed Rulemaking to implement the One Big Beautiful Bill Act (OBBB) by overhauling federal student loan regulations under Title IV of the Higher Education Act, including establishing new annual and lifetime loan limits for graduate, professional, and parent borrowers, phasing out the Graduate PLUS Program, and capping Parent PLUS borrowing, with the stated goal of curbing excessive debt and putting downward pressure on tuition. The proposal would also replace the existing maze of income-driven options with two streamlined repayment plans — a new income-driven “Repayment Assistance Plan” and a “Tiered Standard” plan — while sunsetting current Income-Contingent Repayment arrangements, revising deferment and forbearance eligibility, clarifying Public Service Loan Forgiveness treatment, and allowing borrowers a second chance to rehabilitate defaulted loans. The Department emphasizes that these changes are intended to reduce taxpayer exposure to costly loan discharges and forgiveness programs and encourage institutions to align pricing with the new “responsible” loan limits. Public comments will be accepted for 30 days after publication in the Federal Register. For more information, click here.
On January 29, Commodity Futures Trading Commission (CFTC) Chairman Michael S. Selig and U.S. Securities and Exchange Commission (SEC) Chairman Paul S. Atkins held a joint “Harmonization: U.S. Financial Leadership in the Crypto Era” event at CFTC headquarters in Washington, D.C. Billed as an opportunity to align the agencies’ approaches to digital assets and to advance President Donald Trump’s goal of making the U.S. “the crypto capital of the world,” the event marked a clear pivot away from the fragmented, enforcement‑driven posture of prior years toward coordinated rulemaking and market‑structure reform. The one‑hour program featured opening remarks from Atkins, keynote remarks from Selig, and a fireside chat moderated by Eleanor Terrett of “Crypto in America.” Although the statutory lines between securities and commodities remain in place, both chairs emphasized that the agencies intend to narrow practical gaps, reduce regulatory friction, and present a more unified front to crypto market participants. For more information, click here and here.
On January 29, the U.S. Senate Committee on Agriculture, Nutrition, and Forestry (AG Committee), led by Chairman John Boozman (R‑AR), advanced the Digital Commodity Intermediaries Act (DCIA). The bill would give the CFTC new authority over spot‑market “digital commodities” and create a federal registration and compliance regime for key digital asset intermediaries. In the press release, Boozman framed the vote as “a critical step toward creating clear rules for digital asset markets” that protect consumers while allowing innovation to thrive. The DCIA is designed to complement the House‑passed, bipartisan CLARITY Act and reflects negotiations with Senate Democrats and extensive stakeholder input. Together, these bills signal a concerted congressional effort to move away from pure “regulation by enforcement” and toward a statute‑driven market structure for digital assets. For more information, click here.
On January 29, Bloomberg Law reported that the Consumer Financial Protection Bureau (CFPB) will restart but dramatically scale back its supervisory examinations in 2026, planning fewer than 70 all-virtual reviews of banks, fintechs, and other covered entities — down sharply from an annual average of more than 600 supervisory events in prior years — and narrowing their focus to core financial risks and clearly authorized areas of consumer harm. According to the report, the agency’s new approach, framed around an internal “humility pledge,” reflects a broader policy shift under Acting Director Russell Vought to streamline oversight, reorient examinations toward larger banks with more than $10 billion in assets, and pare back scrutiny of nonbank providers. At the same time, the CFPB is moving to eliminate the use of disparate impact analysis in fair lending supervision under the Equal Credit Opportunity Act, limiting examiners to overt, intentional discrimination and signaling forthcoming rulemaking to codify that change. These supervisory cutbacks and doctrinal shifts are unfolding against the backdrop of ongoing litigation over the administration’s effort to significantly downsize or dismantle the CFPB and recent disputes over its ability to draw funding from the Federal Reserve. For more information, click here.
On January 29, the Federal Deposit Insurance Corporation (FDIC) issued a final rule amending its 12 CFR Part 328 signage requirements for insured depository institutions’ digital deposit-taking channels and ATMs, aiming to resolve implementation problems and potential consumer confusion stemming from its 2023 rule by giving banks more flexibility in the design and placement of FDIC official digital signs and non-deposit disclosures while preserving clear notice of deposit insurance coverage. The rule clarifies that the FDIC digital sign must appear clearly, continuously, and conspicuously on key pages (such as a site or app’s initial page, login page, and first deposit account-opening screen) and on the initial screen of ATMs and like devices (excluding idle “screensaver” ads), narrows when and where non‑deposit signage is required (e.g., pages primarily devoted to nondeposit products and the first screen when initiating a nondeposit transaction), and refines the “one-time” notification banks must show when logged‑in customers click through to third‑party or affiliate non‑deposit platforms. It also expands the circumstances in which institutions may use a physical FDIC sign instead of a digital one on certain ATMs, explicitly permits additional explanatory disclosures, and pushes the compliance date for the revised standards to April 1, 2027 (following a March 2, 2026 effective date), with the FDIC projecting reduced implementation and ongoing compliance costs and a more streamlined, less confusing customer experience. For more information, click here.
On January 28, the SEC’s Division of Corporation Finance, Division of Investment Management, and Division of Trading and Markets issued a joint statement explaining how existing federal securities laws apply when traditional securities are “tokenized” on blockchain or other crypto networks. The staff defines a tokenized security as an instrument that already meets the statutory definition of a “security” (e.g., stock, bond, note, security‑based swap) but is formatted as or represented by a crypto asset, with ownership recorded in whole or in part on a crypto network. In sum, changing the format of a security (to a token or other crypto asset) does not change whether, or how, the federal securities laws apply. For more information, click here.
On January 28, the CFTC announced that Tyler S. Badgley has been appointed general counsel, with Selig praising his experience and emphasizing Badgley’s role in helping the agency develop new regulatory frameworks for emerging markets and defend its exclusive authority over derivatives. Badgley, who most recently served as deputy general counsel and previously executive secretary at the U.S. Department of the Treasury, also brings prior experience from the U.S. Chamber of Commerce Litigation Center, big law, and service as special counsel to the U.S. Senate Judiciary Committee, after starting his career clerking for Judge Edith H. Jones on the U.S. Court of Appeals for the Fifth Circuit. Selig also thanked Meghan Tente for her service as acting general counsel since January 2025 and noted she will continue as a senior advisor focused on harmonizing the CFTC’s regulatory framework with that of the SEC and eliminating duplicative rules. Badgley stated he is honored to support the CFTC’s mission and is committed to ensuring the durability of its pro‑innovation agenda alongside appropriate oversight of market participants. For more information, click here.
On January 28, Bloomberg Law reported that the U.S. Marshals Service, which safeguards cryptocurrencies seized or forfeited in federal law enforcement actions, is investigating a possible hack of US government digital-asset accounts after onchain investigator “ZachXBT” alleged that wallet addresses associated with government seizures were among those looted of more than $60 million in late 2025, prompting a public response from Patrick Witt, executive director of the president’s Council of Advisors for Digital Assets, who said he was “on it.” The investigation comes in the wake of Trump’s creation of a national Strategic Bitcoin Reserve and a broader U.S. Digital Asset Stockpile, underscoring persistent security risks in crypto markets where an estimated $3.4 billion in digital assets was stolen in 2025. For more information, click here.
On January 27, the National Credit Union Administration (NCUA) announced the fourth round of proposed regulatory changes under its ongoing Deregulation Project and invited stakeholders to submit comments on four notices of proposed rulemaking aimed at streamlining and clarifying its rules. The proposals would: (1) amend 12 C.F.R. § 701.32(b)(2) by removing the requirement that a credit union’s board adopt a written plan when public unit and nonmember shares plus borrowings exceed 70% of paid‑in unimpaired capital and surplus, giving federally insured credit union boards more flexibility to set their own funding policies; (2) eliminate 12 C.F.R. § 741.5, which specifies a 30‑day notice requirement when a federally insured credit union terminates supplemental share insurance coverage, so that only a general notice obligation would remain; (3) remove the “maximum borrowing authority” provision in 12 C.F.R. § 741.2 for federally insured, state‑chartered credit unions, leaving them subject to state law while preserving the statutory borrowing cap for federal credit unions; and (4) rescind 12 C.F.R. § 741.10’s separate disclosure regime for uninsured nonmember shares at federally insured, state‑chartered credit unions on the ground that it duplicates disclosure obligations already imposed by their federal share insurance agreements. For more information, click here.
On January 27, the Financial Industry Regulatory Authority (FINRA) published “Emerging Trend in GenAI: Observations on AI Agents,” highlighting how member firms are beginning to deploy “agentic” artificial intelligence (autonomous systems that can plan, decide, and act without predefined rules) across functions such as conversational support, software development, fraud detection, trade and anti–money laundering surveillance, process automation, and trade execution. FINRA emphasized that, while these AI agents can enhance Generative AI (GenAI) by automating complex workflows and interacting with multiple data sources at scale, they also introduce distinct risks around autonomy, scope of authority, auditability, data sensitivity, domain knowledge, and misaligned incentives, in addition to the familiar GenAI risks of bias, hallucinations, and privacy concerns. The notice underscores that existing securities laws and FINRA’s technology‑neutral rules continue to apply to AI‑driven activities, and it encourages firms to develop robust governance and supervision frameworks and to engage proactively with FINRA as their agentic AI strategies evolve. For more information, click here.
On January 27, the European Central Bank (ECB) announced that, starting March 30, 2026, the Eurosystem will accept marketable assets issued in central securities depositories using distributed ledger technology (DLT) as eligible collateral for its credit operations, provided they meet existing collateral eligibility and collateral management criteria, including settlement via CSDR-compliant systems reachable through TARGET2‑Securities. The ECB also outlined a phased work plan to explore how, and under what conditions, assets issued and settled entirely on DLT networks might in the future qualify as Eurosystem collateral, aligning its collateral framework with technological advances while maintaining standards of safety, efficiency, adequacy, and a level playing field, and underscoring its broader commitment to innovation, market efficiency, and further integration of European capital markets. For more information, click here.
On January 23, the U.S. Department of Housing and Urban Development (HUD) announced a nationwide “Cleaning House” directive requiring all Public Housing Authorities (PHAs) and owners participating in HUD‑funded housing to verify the citizenship and immigration status of every tenant within 30 days, after a joint HUD–Department of Homeland Security (DHS) audit of Section 8 and Section 9 tenant files identified nearly 200,000 tenants needing eligibility verification, almost 25,000 deceased tenants, and roughly 6,000 ineligible non‑U.S. tenants. Citing Section 214 of the Housing and Community Development Act of 1980 and Trump’s Executive Order 14218, HUD and the Department of Homeland Security — operating under their “American Housing Programs for American Citizens” Memorandum of Understanding — used the Department of Homeland Security’s Systematic Alien Verification for Entitlements (SAVE) program to conduct immigration status checks and instructed PHAs and owners to review their Enterprise Income Verification (EIV)/SAVE Tenant Match Reports, correct any reporting errors, and take action against ineligible or deceased tenants, warning that those who fail to comply will face sanctions and recapture of funds paid on behalf of ineligible tenants. For more information, click here.
On January 23, the House Committee on Financial Services, chaired by Representative French Hill (R-AR), advanced six bills and one resolution aimed at easing regulatory burdens while safeguarding the financial system, including reauthorizing the Terrorism Risk Insurance Act to maintain affordable terrorism risk coverage (H.R. 7128), expressing the House’s stance on promoting pro-innovation yet well‑regulated use of artificial intelligence in financial services and housing (H.R. 1007), tailoring regulatory thresholds for community banks and small credit unions by indexing them to nominal GDP (H.R. 7056), enhancing coordination and tools to combat money laundering tied to cybercrime and digital assets (H.R. 5877), updating financial reporting thresholds for inflation to reduce outdated compliance costs while preserving useful data for law enforcement (H.R. 1799), creating a Public Company Advisory Committee at the SEC to improve feedback on and implementation of securities regulations (H.R. 6967), and repealing certain conflict minerals disclosure requirements under the Securities Exchange Act to lower compliance burdens while maintaining core investor protections (H.R. 7085). For more information, click here.
On January 21, White House AI and crypto czar David Sacks and White House Office of Science and Technology Policy Director Michael Kratsios appeared on CNBC’s “Squawk Box” from Davos to discuss Trump’s digital asset and AI agenda, emphasizing the administration’s push to secure Senate passage of a crypto market structure bill despite last‑minute industry infighting over whether stablecoins may pay yield, predicting that banks will ultimately enter the stablecoin business and that “like products” should be regulated in a harmonized way. Sacks defended the administration’s broader economic and tech policy record, including its posture on exporting downgraded AI chips to China, while Kratsios outlined the White House strategy to foster AI innovation under a single federal framework rather than a “patchwork” of conflicting state laws, including work on a “lightweight” federal AI legislative proposal and targeted protections around deepfakes and harms to children. For more information, click here.
On January 20, during an interview on CNBC’s “Squawk Box” from Davos, U.S. Treasury Secretary Scott Bessent used the one‑year anniversary of Trump’s term to argue that the U.S. is enjoying world‑leading economic performance — strong GDP and job growth, moderating inflation, and a CapEx boom driven by a “three‑legged stool” of trade, tax, and deregulation — while moving the deficit‑to‑GDP ratio toward 3% through spending restraint and higher tariff revenues. On the Federal Reserve, Bessent said the president is close to choosing a new chair from four strong candidates, criticized Chair Jay Powell’s decision to attend Supreme Court proceedings as politicizing the Fed, cited multiple ethics scandals and large operating losses at the central bank, and called for a Greenspan‑style leader willing to let a productivity‑driven expansion run without overreacting to strong GDP data. He also defended nontraditional Republican measures — tariffs, “most favored nation” drug pricing to force higher payments from Europe, tighter discipline on defense contractors, and potential action on credit card practices — as targeted corrections to “unfettered” markets that produced large trade deficits and foreign free‑riding, framing them as consistent with an “America first, not America alone” approach. For more information, click here.
On January 20, in a Washington Post opinion piece, Selig argued that under Trump’s leadership and impending digital asset market structure legislation, America’s financial markets are poised for a golden age as the CFTC moves away from the prior administration’s “regulation by enforcement” toward clear, innovation-friendly, and fit-for-purpose rules for emerging technologies such as blockchain, artificial intelligence, digital assets, and prediction markets. Through his “Future-Proof” initiative, he pledges to modernize decades-old regulations, apply only the “minimum effective dose” of oversight, and ensure that new markets can flourish in the U.S. under transparent, stable regulatory frameworks that preserve the nation’s status as home to the world’s deepest and most dynamic markets. For more information, click here.
On January 15, the SEC’s Division of Corporation Finance issued a response to counsel for MegPrime Holding LLC stating that, based on the facts and representations in MegPrime’s January 12 no‑action request, it would not recommend enforcement action if MegPrime offers and sells its MegPrime digital tokens without registering them under Section 5 of the Securities Act or as a class of equity securities under Section 12(g) of the Exchange Act, in reliance on counsel’s view that the tokens are non‑securities. The staff’s position rests on MegPrime’s description of the tokens as blockchain‑based payment and rewards instruments used in a consumer rewards and home‑affordability program (with no equity, profit, or governance rights, and immediate consumptive use), rather than as investment contracts under the Howey test, and the letter cautions that any different facts or conditions could lead to a different conclusion and that the response reflects only an enforcement posture, not a legal determination on the underlying issues. For more information, click here.
On January 12, the G7 Cyber Expert Group (CEG), chaired by the U.S. Department of the Treasury and the Bank of England, released a public roadmap for financial institutions, authorities, and critical suppliers on how to coordinate a transition to post‑quantum, or quantum‑resilient, cryptography, warning that sufficiently advanced quantum computers could undermine widely used encryption protocols that protect financial systems and data even as they create new opportunities. The non‑prescriptive roadmap outlines key considerations, risk assessments, and potential activities firms should evaluate in planning their migration to quantum‑safe technologies, and G7 CEG co‑chairs Cory Wilson and Duncan Mackinnon emphasized that addressing quantum risk will require a coordinated effort across the global financial ecosystem. For more information, click here.