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- THIS WEEK'S REGULATORY REPLAY | APRIL 4, 2025
In this episode: NBC News, Banking Dive, Mondaq, Bloomberg Law, Reuters, Banking Exchange
For Watchers
For Readers:
📢 Top Regulatory Headlines This Week
NBC News is reporting that the federal government is phasing out paper checks. This move aims to increase efficiency and reduce costs associated with physical check processing. Individuals receiving federal benefits will need to switch to direct deposit or prepaid debit cards.
Banking Dive is reporting that the FDIC has eased crypto custody rules for banks. This change allows financial institutions to hold cryptocurrencies on behalf of their clients. The decision reflects the growing acceptance of digital assets in the traditional banking sector.
Mondaq is reporting that Congress is considering securities offering reform to encourage capital formation. The proposed changes aim to simplify the process for companies to raise funds through securities offerings. This initiative seeks to boost economic growth by facilitating access to capital.
Mondaq is reporting that the CFPB is proceeding with some of its enforcement actions, but most are now stayed or dismissed. Following a change in leadership, the Bureau has voluntarily dismissed numerous enforcement actions. Only a few cases, particularly those involving vulnerable populations, are continuing.
Banking Dive is reporting that the CFPB and DOJ are appealing an injunction that's trimmed the bureau’s workforce from 1,700 to 1,000. The Justice Department argues that freezing the CFPB at its previous headcount is problematic. The appeal is set to be heard by the U.S. Court of Appeals for the D.C. Circuit.
Bloomberg Law is reporting that CFPB cuts have spurred the California Senate to vote to boost the state regulator. In response to federal reductions, California is taking steps to enhance its own consumer protection agency. This move aims to ensure continued oversight and enforcement at the state level.
Reuters is reporting that the U.S. Securities and Exchange Commission has restructured its enforcement division. The reorganization introduces new deputy directors overseeing distinct regions and specialized units. This change aims to improve efficiency and management within the agency.
Banking Dive is reporting that the OCC has rescinded climate risk guidance for large banks. Acting Comptroller Rodney Hood stated that the guidance was overly burdensome and duplicative. This decision aligns with the administration's broader rollback of climate-related policies.
Banking Exchange is reporting that the future of UDAAP enforcement may shift to the states. With the federal approach becoming less aggressive, state-level developments are expected to play a more prominent role. Maintaining strong UDAAP policies will be crucial for institutions to avoid enforcement actions.
[Nacha] is reporting that it is seeking public comment on proposed changes to IAT (International ACH Transaction) rules. The updates include enabling same-day IAT processing, requiring birthdates for consumer transactions, and mandating IAT contacts in the ACH registry. The goal is to improve efficiency and data quality for cross-border payments.
[Payments Dive] is reporting that the U.S. House plans to vote on overturning a CFPB rule overseeing big tech payment apps. The rule affects platforms processing over 50M transactions annually and is seen as a regulatory threat by companies like PayPal and Google Pay. If repealed, these firms could operate without CFPB oversight, raising consumer protection concerns.
[Payments Dive] is reporting that ACH payments volume continues to rise, with The Clearing House reporting 20.7B transactions in 2024. Total ACH value reached $86.2 trillion, driven by growing use of real-time and business payments. The RTP network also saw a 38% volume increase, and the U.S. government is phasing out paper checks.
Banking Dive is reporting A federal judge has issued a preliminary injunction halting the Consumer Financial Protection Bureau (CFPB) from implementing mass layoffs and mandating the reinstatement of all probationary and term employees terminated since February 10th. The court's decision also lifts Acting Director Russ Vought's stop-work order, allowing affected employees to resume their duties. Furthermore, the CFPB is prohibited from deleting or impairing agency data and must restore any contracts that were terminated under Vought's directive.
This ruling represents a significant victory for the National Treasury Employees Union (NTEU), which filed the lawsuit challenging the CFPB's recent actions. NTEU President Cat Farman emphasized that CFPB employees are eager to return to their roles, focusing on protecting consumers from financial misconduct. The court's order underscores concerns that, without intervention, the agency could be dismantled before legal questions about the administration's authority are resolved.
Finextra is reporting that "FDIC says banks don't need prior approval for crypto activities." The Federal Deposit Insurance Corporation (FDIC) announced that U.S. banks no longer need to receive prior approval before engaging in crypto-related activities. This policy change aims to facilitate banks' entry into the crypto sector, provided they adequately manage associated risks.
Law360 is reporting that "Fed, CFPB urge 7th Circ. to uphold payday lending rules." The Federal Reserve Board has requested a Kentucky federal judge to uphold its existing cap on debit card swipe fees, defending the regulatory measure's substantive and procedural validity. This move underscores the ongoing legal debates surrounding financial regulations and consumer protection.
Links to the news sources from today's episode:
#FintechNews #Stablecoins #DigitalPayments #CFPB #EmbeddedLending
NBC News | Federal government is phasing out paper checks. Here's who will be affected | Link
Banking Dive | FDIC eases crypto custody rules for banks | Link
Mondaq | Congress Considering Securities Offering Reform To Encourage Capital Formation | Link
Mondaq | CFPB Is Proceeding With Some Of Its Enforcement Actions, But Most Are Now Stayed Or Dismissed | Link
Banking Dive | CFPB, DOJ appeal injunction that's trimmed bureau’s workforce from 1,700 to 1,000 | Link
Bloomberg Law | CFPB Cuts Spur California Senate Vote to Boost State Regulator | Link
Reuters | U.S. SEC restructures enforcement division, memo says | Link
Banking Dive | OCC rescinds climate risk guidance for large banks | Link
Banking Exchange | The future of UDAAP? Look to the states | Link
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