The US Small Business Administration (SBA) recently provided additional guidance to the smaller lenders in its network on how to comply with its prior directive on eliminating “politicized or unlawful debanking” activities. The initial letter to lenders came in response to a Trump administration executive order (EO) that directs the SBA and other “Federal banking regulators”[1] to identify and remediate past instances and prevent against …
Leadership Change at NYDFS
News out of New York: Department of Financial Services (NYDFS) Superintendent Adrienne Harris is stepping down after four years in the role. Kaitlin Asrow, currently executive deputy superintendent of the Research & Innovation Division, will take over as acting superintendent effective October 18, 2025. According to the announcement, over the last four years, Asrow has overseen the regulation of virtual currency companies as well as …
CFPB Rescinds Amendments to Confidentiality of Nonbank Supervisory Proceeding Outcomes
The Consumer Financial Protection Bureau (CFPB) announced a final rule that rescinds Biden-era amendments made to its procedures for supervisory designations of nonbanks. The amended rule reestablishes that decisions and orders in contested supervisory designation proceedings held pursuant to section 1024(b)(7) of the Consumer Financial Protection Act (CFPA) are confidential. This change effectively reinstates the confidentiality standard for supervisory designation proceedings first established in a …
OCC Bulletins Announce Plans to Eliminate Debanking
The Office of the Comptroller of the Currency (OCC) recently issued two bulletins aimed at preventing banks from engaging in “politicized or unlawful debanking,” aligning with a recent executive order (EO) from President Donald Trump. The OCC warns banks that debanking practices may negatively impact their Community Reinvestment Act (CRA) reviews and licensing applications, and reiterates their legal obligations under the Right to Financial Privacy …
To Carry Out EO, SBA Orders Its Lenders to Review and End Debanking Practices
The US Small Business Administration (SBA) has sent letters to its network of more than 5,000 lenders to stop “politicized or unlawful debanking” practices. The directive follows President Donald Trump’s recent executive order to cease debanking based on political, religious or ideological beliefs. Lenders must take specific actions to ensure compliance with the new federal mandate and avoid discriminatory banking practices. Read more ›
CFPB Narrows Its Supervision of Nonbanks
The Consumer Financial Protection Bureau (CFPB) recently proposed a rule that would likely limit the nonbanks it supervises to those whose activities “pose a high likelihood of significant harm to consumers” in connection with offering or providing consumer financial products or services. The CFPB’s rule would more narrowly construe a provision of the Consumer Financial Protection Act that the CFPB has relied on to supervise …
Executive Order Guarantees Efforts Against Debanking Will Continue
The White House recently issued an executive order (EO) aimed at combatting “politicized or unlawful” debanking. Among other requirements, the EO requires “Federal banking regulators” and the Small Business Administration (SBA) to eliminate from their guidance and other materials the use of reputation risk that could result in debanking and take remedial action against past instances of debanking. This EO is the latest in a …
US DOJ Memo Clarifies DEI Compliance for Federal Funding Recipients
The US Department of Justice (DOJ) released a memo directed at all federal agencies, setting forth the department’s view on how federal antidiscrimination laws apply to programs or initiatives, including diversity, equity and inclusion (DEI) programs. The memo provides a nonexhaustive list of unlawful DEI practices that could result in revocation of federal grant funding, and it offers best practices for organizations to minimize the …
FTC Delays Enforcement of Amended Negative Option Rule
On May 9, 2025, the Federal Trade Commission (FTC) voted unanimously to delay enforcement of most portions of its amended Negative Option Rule by 60 days, shifting the compliance deadline for those portions from May 14 to July 14, 2025. Once fully enforced, the rule will impose sweeping new requirements on businesses offering subscription-based services, including enhanced consent, disclosure and cancellation obligations. Read more ›
California DFPI Issues Annual Report Detailing Key Consumer Protection Accomplishments
On May 29, 2025, the California Department of Financial Protection and Innovation (DFPI) issued its annual report highlighting its activities and accomplishments in 2024 under the California Consumer Financial Protection Law (CCFPL). The DFPI reported that it issued regulations with new registration requirements for providers of earned wage access products, private postsecondary education financing, debt settlement services and student debt relief services – all of …