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 February 6, the Commodity Futures Trading Commission’s (CFTC) Market Participants Division reissued CFTC Staff Letter 25‑40 with a narrow revision to the definition of “payment stablecoin,” clarifying that stablecoins issued by national trust banks qualify as “permitted issuers” for purposes of the no‑action relief. The updated letter preserves the division’s December 8, 2025, no‑action position allowing futures commission merchants to accept certain nonsecurities digital assets, including payment stablecoins, as customer margin collateral and to hold specified proprietary payment stablecoins in segregated customer accounts, but expands the eligible collateral set to cover payment stablecoins issued by Office of the Comptroller of the Currency (OCC)‑chartered national trust banks. CFTC Chairman Michael S. Selig framed the change as aligning the no‑action relief with the post‑GENIUS Act stablecoin framework and reinforcing the U.S.’s position as a leader in payment stablecoin innovation. For more information, click here.
On February 6, the U.S. Government Accountability Office (GAO) reported that the Consumer Financial Protection Bureau’s (CFPB) fiscal year 2025 financial statements — which reflected $867.5 million in spending — were fairly presented in all material respects under U.S. generally accepted accounting principles, that the CFPB maintained effective internal control over financial reporting as of September 30, 2025, and that GAO found no reportable noncompliance with applicable laws, regulations, contracts, or grant provisions. The CFPB noted it was pleased to receive an unmodified (clean) audit opinion on both its statements and controls and stated it would continue working to strengthen internal controls and ensure reliable financial reporting. For more information, click here.
On February 6, the Federal Deposit Insurance Corporation (FDIC) announced a 90‑day extension of the comment period for its notice of proposed rulemaking that would establish application procedures under the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) for FDIC‑supervised state nonmember banks and state savings associations seeking to issue payment stablecoins through subsidiaries, moving the deadline from February 17, 2026, to May 18, 2026, to give stakeholders additional time to respond to the proposal. For more information, click here.
On February 5, Senators Elizabeth Warren (D-MA), Jack Reed (D-RI), and several colleagues sent a letter to Comptroller of the Currency Jonathan Gould and FDIC Chairman Travis Hill urging the OCC and the FDIC to withdraw their jointly proposed rule redefining “unsafe or unsound practice.” The senators contend the proposal — by requiring “likely” and “material” harm before supervisors can act and tying that standard to both enforcement tools and formal supervisory communications such as Matters Requiring Attention — would significantly weaken bank oversight, prevent examiners from addressing emerging risks before they cause serious damage, and conflict with the text and structure of 12 U.S.C. § 1818. Citing the 2008 financial crisis and the 2023 bank failures, they argue the lesson is that regulators already move too slowly, not that “unsafe or unsound” authority is overused, and they warn that further constraining supervision and enforcement will increase the risk of future bank failures, bailouts, and systemic harm. For more information, click here.
On February 4, the CFPB updated its complaint portal to require consumers who wish to complain about inaccurate or incomplete information on their consumer reports to first dispute the information directly with the consumer reporting agency and either wait at least 45 days or allow the dispute process to conclude before filing a CFPB complaint. Under the new notice, consumers must attest that they have already submitted a dispute to the credit reporting agency and that the dispute is no longer pending or was filed more than 45 days ago. Otherwise, the company may decline to respond and the CFPB will stop processing the complaint. The CFPB also warns consumers not to complain while a direct dispute is still active, emphasizing that consumer reporting agencies generally have 30 to 45 days to investigate and that premature CFPB complaints “impede the system” for other consumers who follow the required first-step dispute process.For more information, click here.
On February 4, the CFTC announced that it has withdrawn its June 2024 notice of proposed rulemaking on “Event Contracts” and will not issue final rules based on that proposal, while commission staff simultaneously withdrew a 2025 staff advisory on sports event contracts that had generated industry uncertainty. Selig framed the move as a shift away from the prior administration’s attempted prohibition on political event contracts and “merit regulation,” stating that the commission will pursue a new event contracts rulemaking grounded in a “rational and coherent” reading of the Commodity Exchange Act that promotes lawful, responsible innovation consistent with congressional intent. For more information, click here.
On February 3, a group of Senate Democrats led by Senators Raphael Warnock (D-GA) and Elizabeth Warren (D-MA) sent a letter to CFPB Acting Director Russell Vought urging him to rescind the CFPB’s proposed rule that would eliminate the use of disparate impact under the Equal Credit Opportunity Act (ECOA). The senators argued that ending ECOA’s disparate impact test would “open the floodgates” to discrimination in consumer lending markets, undermine longstanding civil rights protections, and effectively prevent lenders from offering Special Purpose Credit Programs designed to expand access to credit for historically disadvantaged groups. Citing decades of case law, legislative history, and data on persistent disparities in mortgage and other credit outcomes, the letter contends that focusing solely on intentional discrimination is inconsistent with ECOA’s purpose and would increase borrowing costs for protected classes, and it requests a briefing from the CFPB on efforts to withdraw the proposal by February 10, 2026. For more information, click here.
On February 3, the OCC published a Federal Register notice announcing that it has submitted to the Office of Management and Budget (OMB) for review a revised information collection for its “Company-Run Annual Stress Test Reporting Template and Documentation for Covered Institutions with Total Consolidated Assets of $250 Billion or More” under the Dodd‑Frank Act, and is inviting public comment through March 5, 2026. The notice explains that the OCC is finalizing limited updates to its stress test reporting forms and instructions, largely to maintain consistency with the Federal Reserve’s FR Y‑14A and to reduce duplicative burden on the largest national banks and federal savings associations subject to annual company‑run stress testing. The OCC states that the revised forms will closely resemble those used in prior years, that proposed additional data collection on pre‑provision net revenue will not be implemented at this time, and that further conforming changes may be made if the Federal Reserve later revises its own FR Y‑14A templates. For more information, click here.
On February 3, the U.S. Department of the Treasury issued a request for information seeking public comment to inform the Financial Literacy and Education Commission’s (FLEC) update of the U.S. National Strategy for Financial Literacy, which was last revised in 2020. Treasury is asking individuals and organizations to weigh in by April 6, 2026, on whether the current priority areas and “best practices” for financial education remain appropriate, how the strategy should address recent developments such as new youth “Trump Accounts” created under the One Big Beautiful Bill Act, and how to better equip consumers to recognize and avoid increasingly sophisticated fraud and scams. The notice also invites input on the federal government’s role in supporting financial literacy, how FLEC should engage with nonfederal education providers, and what new research, evaluation methods, and outcome measures should guide the next National Strategy. For more information, click here.
On February 2, the U.S. Securities and Exchange Commission (SEC) issued an order dismissing two long‑running administrative proceedings involving American CryptoFed DAO LLC’s 2021 Form 10 and Form S‑1 registration statements for its Ducat “stable” token and Locke governance token, after reversing its earlier refusal to let the company withdraw those filings. Citing significant changes in the U.S. crypto regulatory landscape — including enactment of the GENIUS Act on stablecoins, a presidential directive to support responsible digital asset innovation, new policy work from the President’s Working Group, and the SEC’s own Crypto Task Force and staff guidance — the commission granted American CryptoFed’s request to withdraw its not‑yet‑effective Form S‑1 and held that its 2022 request to withdraw its not‑yet‑effective Form 10 was effective when filed, rendering the proceedings moot. The SEC emphasized that it was expressing no view on whether the tokens are securities, and stated that dismissing the cases will allow American CryptoFed to reassess whether, when, and how to pursue any future registration in light of the evolving framework for crypto assets. For more information, click here.
On January 30, President Donald Trump announced his nomination of former Federal Reserve Governor Kevin Warsh to serve as chair of the Board of Governors of the Federal Reserve System, highlighting Warsh’s prior service on the Fed during the 2008 financial crisis, senior roles in the Bush administration, and experience in global finance as key qualifications. The nomination drew swift and broad praise from Republican congressional leaders, business groups, financial services trade associations, and market commentators, who emphasized his monetary policy expertise, crisis-management experience, and commitments to Fed independence, fighting inflation, and refocusing the central bank on its core statutory mandate. For more information, click here.
On January 30, the CFPB published a Federal Register notice requesting public comment on its plan to seek OMB approval to extend an existing information collection for its “Consumer Response Intake Form,” which consumers use to submit complaints, inquiries, and feedback to the CFPB. The notice, issued under the Paperwork Reduction Act, estimates about six million respondents and 1,123,334 annual burden hours, and explains that consumers may submit information online, by mailed paper form, or by telephone. The CFPB is inviting comments by March 2, 2026, on whether the collection is necessary, the accuracy of its burden estimates, ways to improve the quality and clarity of the information collected, and methods to reduce respondent burden through technology. For more information, click here.
On January 29, the OCC approved, on a conditional basis, a new national bank charter for Nubank, National Association, a proposed full‑service, digitally focused bank to be headquartered in McLean, VA. The approval follows a September 2025 filing and is subject to standard OCC conditions, including that the institution be fully capitalized within 12 months and open for business within 18 months, as well as obtaining separate approvals from the FDIC and the Federal Reserve before it may accept deposits or commence operations. For more information, click here.
State Activities:
On January 30, the Illinois Department of Financial and Professional Regulation (IDFPR), working with the FDIC, closed Metropolitan Capital Bank & Trust in Chicago due to “unsafe and unsound conditions” and an impaired capital position, and arranged for First Independence Bank of Detroit, a minority depository institution, to assume its operations and deposits. IDFPR emphasized that no depositor will lose money as a result of the action, that First Independence Bank will immediately operate the failed bank as a branch with normal business hours resuming on Monday, February 2, 2026, and that the transaction is intended to ensure a seamless transition of services while preserving confidence in Illinois’ state‑chartered banking system.For more information, click here.
On January 29, a coalition of state attorneys general and state banking regulators led by New York Attorney General Letitia James submitted a comment letter to the OCC opposing its proposed Real Estate Lending Escrow Accounts rule and related preemption determination, which together would define “escrow accounts” under federal banking law and declare that state interest-on-escrow statutes in New York and other states are preempted. The letter argues that minimum interest requirements on mortgage escrow accounts have long been a core component of state consumer protection, that Congress has never authorized national banks to ignore such generally applicable laws, and that Dodd‑Frank narrowed, rather than expanded, the scope of federal preemption by requiring a “significant interference” showing supported by substantial evidence. The signatories contend the OCC’s proposals conflict with Supreme Court precedent, attempt to manufacture a federal-state conflict where none exists, and would unlawfully strip states of their traditional authority in the dual banking system, and they urge the OCC to withdraw both the escrow and preemption rules. For more information, click here.
On January 27, in connection with Data Privacy Day, California Attorney General Rob Bonta announced an investigative sweep targeting “surveillance pricing” practices, where businesses use consumers’ personal information to set targeted, individualized prices for goods and services, potentially triggering or violating obligations under the California Consumer Privacy Act (CCPA). The California Department of Justice is sending information requests to businesses with significant online footprints in the retail, grocery, and hotel sectors, seeking details on how they use shopping and browsing histories, location, demographic, inferential, and other data to set prices, what disclosures and policies they maintain around personalized pricing, and how they are complying with algorithmic pricing, competition, and civil rights laws. Framing surveillance pricing as a possible breach of the CCPA’s “purpose limitation” principle and a threat to consumer trust and fairness, the attorney general positioned this sweep as a continuation of California’s aggressive CCPA enforcement efforts across digital advertising, streaming, location data, children’s privacy, and data broker practices. For more information, click here.