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 November 14, the Federal Reserve Board adopted final amendments to Regulations A and D, lowering key policy rates. Under Regulation A, the discount window’s primary credit rate fell by 25 basis points to 4.00%, which, by formula, reduced the secondary credit rate to 4.50%. Under Regulation D, the interest on reserve balances was reduced by 25 basis points to 3.90% to help maintain the federal funds rate within the Federal Open Market Committee’s (FOMC) new 3.75% to 4.00% target range. While the rules are effective November 14, the rate changes were applicable on October 30, 2025, following the FOMC’s October 29 decision. The Board found good cause under the Administrative Procedure Act to dispense with notice, comment, and a delayed effective date, determined the Regulatory Flexibility Act does not apply, and confirmed the amendments impose no Paperwork Reduction Act requirements. For more information, click here and here.
On November 14, it was reported that the European Commission has proposed centralizing crypto supervision under European Securities and Markets Authority (ESMA), departing from Markets in Crypto-Assets’s (MiCA) national regulator model by shifting firm authorizations and oversight to the European Union watchdog with possible task delegation and requiring approval from Parliament and Council. Industry groups warned the move could disrupt MiCA’s rollout and inject legal uncertainty, citing ESMA’s limited resources and weaker day-to-day proximity to firms, and urging any centralization only after lessons from MiCA’s initial implementation. The push builds on France’s call to expand ESMA’s powers to avoid passporting loopholes, aligns with ESMA Chair Verena Ross’s efficiency concerns about fragmented national preparation, and follows ESMA’s recent scrutiny of Malta’s licensing regime. For more information, click here.
On November 14, it was reported that the U.S. Financial Accounting Standards Board (FASB) is weighing a new project to clarify how companies should account for crypto asset transfers, aiming to close reporting gaps as firms move tokens among wallets, custodians, and exchanges. At its November 19 meeting, FASB will consider whether to expand the 2023 fair-value standard or develop fresh guidance to address derecognition and other issues when control shifts between parties. Finance teams are seeking uniform, transparent rules to reduce confusion and improve comparability as corporate treasuries and service providers ramp up digital-asset activity. For more information, click here.
On November 13, the Consumer Financial Protection Bureau (CFPB) issued a new proposed rule that would substantially revise the 2023 small business lending data collection and reporting rule under the Equal Credit Opportunity Act (ECOA) and Regulation B, which implements Section 1071 of the Dodd-Frank Act. The proposal re-centers Section 1071 on “core” providers, products, and data, with a single compliance date and material carve-outs to reduce complexity and improve data quality. The proposal is open for comment for 30 days after publication in the Federal Register. However, just this week the CFPB filed a notice with the District of Columbia Circuit attaching a Department of Justice (DOJ) Office of Legal Counsel opinion which concluded that the CFPB will only be legally funded through December 31, potentially affecting rulemaking and operations timelines. For more information, click here.
On November 13, the CFPB proposed an unprecedented, far‑reaching rewrite of Regulation B (Reg B) under the ECOA. If finalized, the proposed rule would eliminate disparate‑impact liability under ECOA, significantly narrow the scope of “discouragement” to focus on explicit statements directed at applicants or prospective applicants, and prohibit or tightly restrict the use of certain protected‑class criteria in Special Purpose Credit Programs (SPCPs) offered by for‑profit organizations. Existing SPCP‑originated credit would be grandfathered. Comments are due 30 days after publication in the Federal Register, with a proposed effective date 90 days after publication. For more information, click here.
On November 13, the Office of the Comptroller of the Currency (OCC) issued Bulletin 2025-36 releasing version 1.1 of the Servicemembers Civil Relief Act (SCRA) booklet in the Comptroller’s Handbook, which updates examiner guidance on SCRA consumer protections and applies the OCC’s risk-based supervision approach. The update rescinds the March 2021 version 1.0 and OCC Bulletin 2021-11, applies to community banks, eliminates the prior requirement to conduct a SCRA examination with transaction testing at least once every three supervisory cycles, clarifies servicemember verification and distribution of excess payments, and removes references to reputation risk. For more information, click here.
On November 13, federal banking regulators previewed near-term rulemaking plans that will shape the fintech landscape. The Federal Deposit Insurance Corporation (FDIC) expects to issue a stablecoin licensing proposal “before the end of the year,” and the FDIC reiterated that “a deposit is a deposit” even when tokenized. Separately, the Federal Reserve is targeting the fourth quarter of 2026 for operational rollout of “skinny” master accounts to widen access to payment rails for eligible depository institutions. For more information, click here.
On November 13, the Securities and Exchange Commission’s (SEC) Division of Corporation Finance issued post-shutdown guidance after issuers filed more than 900 registration statements during the closure, outlining that statements filed without delaying amendments will become effective by operation of law after 20 days (with antifraud liability still applying), the staff will not recommend enforcement if certain pricing-related information typically omitted from preliminary prospectuses was left out during the shutdown, issuers may reinsert delaying amendments and request acceleration, post-effective amendments submitted during the closure will be declared effective unless an issuer asks to delay, definitive proxy/information statements may be filed once the 10-day period has run, Form 10s will automatically become effective after 60 days (triggering reporting), and all pending filings and draft submissions, including those made during the closure, will be reviewed and processed in the order received to clear the backlog. For more information, click here.
On November 13, the SEC announced that Deputy Director of the Division of Enforcement (Northeast) Antonia Apps will conclude her tenure effective December 1, 2025. Enforcement Director Margaret Ryan praised Apps’ leadership, strategic counsel, and dedication. Apps thanked Acting Chairman Mark Uyeda and highlighted cross-agency collaboration and public-interest commitment, she led a 600+ person team as the office led the nation in stand-alone enforcement actions and examinations, achieved record hiring over two years, and expanded investor education. Appointed acting deputy director in January 2025 and later deputy director, Apps earlier was a litigation partner, an SDNY assistant U.S. attorney handling securities and white-collar matters, has taught white-collar law at Harvard since 2016, clerked for Second Circuit Judge Fred Parker, and holds law degrees from Sydney, Oxford, and Harvard. For more information, click here.
On November 12, at the Federal Reserve Bank of Philadelphia, SEC Chairman Paul Atkins outlined the status of “Project Crypto,” including his expectation that the SEC will propose a clear token taxonomy anchored in the Howey investment-contract analysis and emphasized that investment contracts can end as networks mature. He stated that most tokens are not themselves securities, distinguishing digital commodities/network tokens, digital collectibles, and digital tools (not securities) from tokenized securities (which remain securities), previewed tailored offering exemptions to facilitate capital formation, and encouraged pathways for tokens initially sold via investment contracts to trade on non-SEC platforms (e.g., Commodity Futures Trading Commission (CFTC) or state-regulated intermediaries) while maintaining robust antifraud enforcement. Praising Commissioner Hester Peirce’s Crypto Task Force and urging close coordination with the CFTC, banking regulators, and Congress, he backed market-structure legislation to codify durable rules and pledged a principles-based, economically grounded approach that provides clarity, respects the limits of SEC jurisdiction, and keeps U.S. crypto innovation onshore. For more information, click here.
On November 12, Federal Reserve Bank of Philadelphia President and CEO Anna Paulson opened the Ninth Annual Fintech Conference by urging stakeholders to harness fintech’s benefits while minding its risks. She highlighted rapid advances in mobile payments, AI, open banking, embedded finance, and the mainstreaming of crypto, and framed innovation through Schumpeter’s “creative destruction,” noting that much progress also comes from incumbents improving their own products. Paulson emphasized opportunities to broaden inclusion, cut costs, and enhance transparency, alongside risks tied to data privacy and security, algorithmic bias and fairness, systemic fragility from faster finance, and digital access gaps. She cited research showing bank–fintech partnerships can expand credit and improve risk assessment, and evidence from India that digital rails and verifiable histories can scale credit without higher defaults. Success, she said, will mean wider inclusion, products that meet diverse needs, and regulatory structures that let fintech and traditional finance coexist while building on what works. Innovation is not only digital, she pointed to community bank services tailored to Amish customers, and these goals require cross‑disciplinary collaboration. For more information, click here.
On November 12, Treasury Secretary Scott Bessent told the Treasury Market Conference that strengthening the Treasury market is central to “Making America Affordable Again,” highlighting a robust, liquid market with year-to-date total returns of about 6%, declining borrowing costs across most maturities, and record foreign holdings amid strong auction demand. He outlined strategies to reinforce resilience and affordability, such as expanding the Treasury buyback program (including larger long-end operations and a broader counterparty set in early 2026), supporting reforms to the eSLR to better enable low-risk intermediation, and backing SEC-led expansion of central clearing. Bessent reaffirmed Treasury’s “Regular and Predictable” issuance framework, using bills as a shock absorber and adjusting coupons gradually, while closely monitoring structural demand from $7.5 trillion money market funds, a ~$300 billion and fast-growing stablecoin sector (boosted by the GENIUS Act), and banks increasing Treasury holdings. Looking ahead, he provided guidance that coupon auction sizes likely won’t change for several quarters given robust bill demand, a reduced deficit, and the FOMC’s plan to purchase bills with mortgage-backed security proceeds, aligning with Treasury Borrowing Advisory Committee’s view that the current mix balances low cost with low volatility amid expected productivity gains from AI and renewed U.S. investment. For more information, click here.
On November 12, the U.S. Attorney’s Office for the District of Columbia launched the DC Scam Center Strike Force to combat Southeast Asian cryptocurrency investment fraud targeting Americans. U.S. Attorney Jeanine Pirro announced the effort with DOJ, the FBI, and the U.S. Secret Service. The Strike Force focuses on “pig butchering” schemes run by Chinese transnational criminal organizations. These schemes are often run out of compounds with workers that are victims of human trafficking, held against their will and instructed to target Americans. In some of the Southeast Asian countries where these compounds operate, scam-generated revenue amounts to nearly half of the country’s GDP. The Strike Force works with U.S. companies to shut down domestic infrastructure used to deceive victims. Early results include $401,657,274.33 in seized and forfeited cryptocurrency. The team also filed forfeiture actions for another $80 million. The mission is to disrupt the scam ecosystem, educate the public, and return stolen funds to victims. For more information, click here.
On November 11, Governor Michael Barr used remarks at the Singapore Fintech Festival to outline three takeaways on AI and central banking. First, AI is transformative but its path is uncertain, with outcomes ranging from incremental task augmentation to a more revolutionary shift that could boost productivity and shape monetary policy. Adoption is rising in large firms, job skills are evolving, and massive data center investment signals confidence. Second, financial firms are deploying AI to cut costs and improve functions like credit decisioning, fraud detection, and trading, but must manage material risks, including governance, explainability, legal compliance, bias, and potential market manipulation or systemic volatility from AI-driven strategies. Third, central banks need to accelerate responsible adoption of AI in their own operations. The Fed has an enterprise AI program and governance framework and is using GenAI for writing, coding, research, and technology modernization, including legacy code translation, unit test generation, and cloud migration under clear guardrails. Barr emphasized choosing the right tool for each task, continuing research on AI’s economic and financial implications, and leveraging AI to strengthen supervision, financial stability work, and payments while safeguarding against new risks. For more information, click here.
On November 10, U.S. Senate Agriculture Committee Chairman John Boozman (R‑AR) and Senator Cory Booker (D‑NJ) released a bipartisan discussion draft to create a federal spot‑market regime for “digital commodities” under the CFTC. The proposal would give the CFTC exclusive jurisdiction over cash and spot trading in covered nonsecurity crypto tokens, establish registration frameworks for exchanges, brokers, and dealers, impose listing and public‑information standards, require qualified custody and strict segregation of customer assets, enhance retail protections, and clarify bankruptcy treatment of customer property. This proposal expands upon the CLARITY Act approved by the House in July. For more information, click here.
On November 10, the U.S. Treasury and Internal Revenue Service issued new guidance creating a safe harbor for crypto exchange-traded products (ETPs) to stake eligible proof‑of‑stake assets, such as Ethereum, Cardano, and Solana, and distribute the resulting rewards to retail investors within a clear, regulated, and tax‑compliant framework. Announced by Bessent, the move provides long‑awaited clarity for fund issuers, builds on prior IRS guidance regarding the taxation of staking rewards, and complements the SEC’s August 2025 clarification that certain protocol‑level liquid staking activities and “staking receipt tokens” are not securities unless tied to an investment contract, collectively opening the door for staking integration in regulated funds while aiming to boost investor benefits and U.S. leadership in digital asset innovation. For more information, click here.
On November 9, the CFTC’s acting chair Caroline Pham moved to jump-start regulated retail spot crypto trading on designated contract markets, personally meeting with exchanges and preparing guidance to proceed under existing authorities despite the lack of congressional action. In parallel, she is overhauling the agency (including a proposed trial unit in enforcement), advancing a tokenized collateral policy to allow stablecoins in clearinghouse pilots early next year, coordinating with the SEC and likely successor Mike Selig, and targeting launches before year-end amid a government shutdown and reduced staffing. Industry advocates say these steps could draw more institutional participation by offering familiar protections on regulated venues, even as reports suggest Pham may depart once a permanent chair is confirmed. For more information, click here.
On November 7, the Federal Reserve Board released its Financial Stability Report, reflecting data through October 23 and assessing vulnerabilities across four areas: asset valuations, borrowing, financial-sector leverage, and funding risks. While reiterating the Fed’s five core functions and its resilience toolkit, the report finds asset valuations elevated, borrowing by businesses and households moderate, financial-sector leverage notable, and funding risks moderate. Near-term risks highlighted by market participants include policy uncertainty, geopolitical tensions, higher long-term rates, persistent inflation, and the potential for sharp asset-price declines, including a turn in AI sentiment, complemented by boxes on AI and algorithmic trading and a targeted assessment of short-term funding risk. For more information, click here.
On November 6, a group of Republican senators sent a letter to Federal Reserve Chair Jerome Powell and Vice Chair for Supervision Michelle Bowman voicing support for timely finalization of a clear, durable Basel III Endgame rule while urging key changes. Those changes include taking a holistic approach using pre–post‑pandemic baselines rather than today’s elevated capital levels; avoiding structural duplication such as the dual‑stack construct (Expanded Risk‑Based Approach plus legacy Standardized Approach with buffers applied to both), which would inflate RWAs, making the Expanded approach the binding constraint, and magnifying GSIB surcharges; refraining from adding redundant operational‑risk RWAs already captured through stress testing and the SCB; and keeping the securitization framework’s p‑factor at or below 0.5 to preserve risk sensitivity and prevent higher funding costs and reduced market liquidity. Citing the April 2025 Financial Stability Report’s finding that banks are sound and well above requirements, the letter argues across‑the‑board capital hikes would not materially enhance stability but would impair credit intermediation, and calls for modernized capital standards that strengthen resilience while supporting access to credit, retirement savings, and economic growth. For more information, click here.
On November 5, Fannie Mae issued Selling Guide Announcement SEL-2025-09. It expands Day 1 Certainty to provide representation and warranty relief for undisclosed non-mortgage liabilities on Desktop Underwriter (DU) Approve/Eligible loans. Mortgage-related debt is excluded. Lenders must continue post-closing quality control and comply with the Ability to Repay and Quality Mortgage Rule. If reverification later finds undisclosed non-mortgage debt, re-underwriting is not required when DU granted relief and all conditions were met. This change takes effect in DU Version 12.0 the weekend of November 15, 2025. The update also broadens single-closing construction-to-permanent loans. Credit documents may be up to 18 months old at conversion. The minimum representative credit score requirement for that exception is removed, effective immediately. Fannie Mae is also removing minimum credit score requirements in DU. DU will assess eligibility using its full risk analysis and will instruct lenders when nontraditional credit and homebuyer education are needed. The 620 minimum score is removed for new casefiles created on or after November 16, 2025. Other DU Version 12.0 changes apply beginning the weekend of November 15, 2025. Finally, eMortgage eligibility now permits loans in inter vivos revocable trusts. For more information, click here.
On November 4, the Conference of State Bank Supervisors (CSBS) urged the U.S. Treasury and federal banking agencies to issue guidance for tokenized deposits and robust stablecoin rules in tandem, emphasizing regulatory clarity for both traditional banks and new payment stablecoin issuers. CSBS’s letter to Treasury outlines a GENIUS Act–aligned framework that treats the “substantial similarity” standard as a federal floor, preserves issuer flexibility to choose federal or state regimes, and calls for strict limits on permitted activities, strong capital and resolution planning, and rules preventing evasion of interest and yield prohibitions. Separately, the CSBS encouraged the FDIC, Federal Reserve, and the OCC to coordinate with state supervisors to clarify tokenized deposit activities, leveraging states’ supervision of 79% of U.S. banks and their decade-plus experience overseeing payment stablecoin issuers. For more information, click here.
State Activities:
On November 10, the Tenth Circuit reversed the district court’s preliminary injunction in the challenge to Colorado’s H.B. 23‑1229, holding that Colorado may enforce its Uniform Consumer Credit Code interest‑rate caps for loans to Colorado borrowers even when originated by out‑of‑state, state‑chartered banks. Interpreting the Depository Institutions Deregulation and Monetary Control Act § 525’s opt‑out phrase “loans made in such State,” the court concluded it encompasses loans in which either the lender or the borrower is located in the opt‑out state. Because Colorado has opted out, § 1831d no longer preempts Colorado rate caps for loans from out‑of‑state state banks to Colorado residents, and the preliminary injunction “falls apart.” For more information, click here.
On November 6, a case in the Western District of Texas brought by Ecommerce Marketers Alliance (d/b/a Ecommerce Innovation Alliance), Flux Footwear, and Stodge (d/b/a Postscript) against the State of Texas ended with a joint motion to dismiss after the Texas attorney general clarified that companies who engage in consent‑based text message programs are not subject to the state’s registration and disclosure requirements. Effective September 1, 2025, SB 140 significantly expanded Texas’ telephone solicitation statute. SB 140 expressly covers text messages and similar electronic communications and introduced a direct private right of action under the Texas Deceptive Trade Practices Act, with exposure to treble damages, mental‑anguish damages, and attorneys’ fees. For more information, click here.
On November 5, the Washington Department of Financial Institutions issued a consent order against NEXA Mortgage, LLC and Mathew L. Grella. The order requires a $60,000 fine, a $1,700 investigation fee, and $950 in restitution to two consumers. It mandates compliance with the Mortgage Broker Practices Act and the Consumer Loan Act and requires proper records retention. The action resolves examination allegations from August 2021 to August 2023, including inaccurate mortgage call reports, noncompliant advertising across numerous webpages, use of unregistered trade names, issuing preapproval letters without lender or AUS approval, late borrower disclosures, closing cost tolerance violations, and loan originator compensation based on transaction terms contrary to federal requirements. NEXA has represented it has taken steps to prevent recurrence and will adjust compensation agreements within 30 days. For more information, click here.