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In today's episode

Banking Dive | Finextra | FinTech Futures | Crowdfund Insider | Fintech Business Weekly | JD Supra | Federal Deposit Insurance Corporation (FDIC) | ATMmarketplace.com | Federal Reserve Bank of Kansas City

For Watchers

For Readers:

Banking Dive | Finextra | FinTech Futures | Crowdfund Insider | Fintech Business Weekly | JD Supra | FDIC | ATM Marketplace | Kansas City Fed📢 Let’s get started with today’s Top Headlines

[Banking Dive] is reporting that the Fed, OCC, and FDIC are seeking to rescind the CRA final rule. The regulators cite pending litigation and court challenges as the reason for pulling back the 2023 rule. They intend to revert to the pre-2023 CRA framework while continuing to work collaboratively on future implementation.

[Banking Dive] is reporting that the Senate has voted to overturn the CFPB’s $5 overdraft fee cap rule. The resolution passed 52-48, with potential for full repeal pending House approval and President Trump’s signature. Critics argue the repeal would hurt consumers, while supporters claim it preserves essential overdraft protection options for working-class Americans.

[Banking Dive] is reporting that House Republicans are intensifying scrutiny of the CFPB and advocating for structural reforms. During a House hearing, GOP lawmakers criticized past CFPB leadership for regulatory overreach and proposed bills to make the bureau a five-member commission and bring it under congressional appropriations. Some Democrats and former CFPB officials pushed back, calling the current administrative shutdown illegal and a threat to consumer protection.

📊 Let’s Check in on what the Government had to do with Payments and Fintech since Friday

[Fintech Business Weekly] is reporting that the CFPB has offered “regulatory relief” to small-dollar lenders via a short blog post. The Bureau stated it will not prioritize enforcement of certain payment withdrawal rules taking effect March 30, 2025. Critics argue the non-binding nature of the statement lacks legal weight, while the CFPB suggests it may issue new rulemaking to narrow the rule's scope.

[JD Supra] is reporting that a fintech trade association is seeking to intervene in litigation over the CFPB’s open banking rule. The group argues the CFPB’s delays and actions show it cannot adequately represent industry interests and urges the court not to extend compliance deadlines without hearing from them. The CFPB’s rule, finalized in October 2024, mandates standardized consumer data access by financial providers.

[FDIC] is reporting that it has issued new guidance clarifying how FDIC-supervised banks can engage in crypto-related activities. The updated guidance rescinds previous policies and confirms that banks may participate in crypto activities without prior FDIC approval, provided risks are properly managed. FDIC Acting Chairman Travis Hill said this shift reflects a more open approach to blockchain innovation aligned with safety standards.

[FinTech Futures] is reporting that the White House has unveiled a national fintech framework to guide innovation and regulation. The framework emphasizes principles like consumer-centric design, financial inclusion, technological fairness, and cybersecurity. It serves as both a product of past public-private collaboration and a roadmap for future engagement across the fintech ecosystem.

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🔥 Turning now to The BIG Story for today: Small Merchants Left Behind by Reg II

A new report from the Kansas City Fed finds that Regulation II—once heralded as a fix for rising debit card fees—has largely failed to deliver meaningful relief to small businesses. While the rule was intended to curb interchange fees and increase routing flexibility, the real-world impact has been uneven at best. The study shows that some networks did reduce fees for select merchant categories, but in many cases, fees actually increased, or stayed the same. And when there were reductions, they were often overshadowed by much larger fee hikes elsewhere.

What’s holding small merchants back? The report points to limited pricing transparency, widespread use of flat-rate processing models, and little leverage to negotiate with networks. In other words, even with the regulatory tools in place, most small businesses are still stuck paying more than their fair share—while larger retailers capitalize on volume discounts and sophisticated routing. As debates around payment network competition and interchange reform continue, this research is a clear signal: policy fixes aren’t working if the smallest players can’t access the benefits.

💡 Finally, There are a Few Industry Insights to Report

ATM Marketplace] is reporting that 971 Bitcoin ATMs went offline in March 2025, dropping the total to 37,920 machines. The decline follows a high point of nearly 40,000 machines in December 2022 and coincides with increased regulatory scrutiny aimed at preventing ATM-related fraud. Only 188 new machines were added during the same period, failing to offset the month’s losses.

[Crowdfund Insider] is reporting that Affirm’s COO Michael Linford has outlined the company’s competitive edge in the BNPL sector. He emphasized Affirm’s diversified revenue model, transparent practices, and partnerships like its new deal with JPMorgan Chase. Linford positioned Affirm’s U.S.-focused strategy and financial discipline as strengths amid rising industry competition and scrutiny.

[Finextra] is reporting that financial institutions need to redefine KYC processes to improve onboarding. Inefficiencies in data collection and manual systems are slowing down client onboarding and creating compliance burdens. By streamlining data sourcing and applying automation, banks can accelerate compliance, improve customer satisfaction, and fuel better lifecycle management.

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Links to the news sources from today's episode:

 Banking Dive | Fed, OCC, FDIC seek to rescind CRA final rule | Link

Banking Dive | House Republicans demand CFPB docs on UDAAP, Chopra, Frotman | Link

Banking Dive | Senate eyes vote to overturn CFPB overdraft rule with $5 cap | Link

Finextra | A new era of KYC – Why it’s time to redefine client onboarding | Link

FinTech Futures | The White House unveils fintech framework for US | Link

Crowdfund Insider | Affirm’s COO highlights key differentiators in BNPL industry | Link

FinTech Futures | Seven US states standardize fintech payments | Link

Fintech Business Weekly (Substack) | CFPB offers flexibility to small-dollar lenders | Link

JD Supra | Fintech trade association moves to dismiss CFPB suit | Link

FDIC (GovDelivery) | FDIC issues bulletin on resolution plans | Link

ATM Marketplace | Bitcoin ATM market sees 971 machines go offline | Link

Kansas City Fed | Debit card interchange fees charged to small merchants after Regulation II | Link

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