On September 17, the New York State Department of Financial Services (NYDFS) issued a notice to all New York banking organizations[1] engaging or considering engaging in cryptocurrency activities, advising such organizations to follow April 2022 guidance on utilizing blockchain analytics as a compliance tool and risk identifier and mitigant. When issued in April 2022, this guidance applied only to licensed virtual currency business entities or …
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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 …
Fed Signals Fraud a Top Priority in Special Compliance Outlook Issue
The Federal Reserve focused its latest Consumer Compliance Outlook on fraud, shining a light on a significant issue impacting consumers and financial institutions alike. The issue details a surge in check fraud and mail-related scams, emphasizing that traditional payment methods remain highly vulnerable, and encourages banks to strengthen fraud prevention efforts and increase consumer education initiatives. As further exemplified by the banking agencies’ recent joint …
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 …
District Court Vacates Regulation II’s Debit Card Interchange Fee Standard
A federal district court recently vacated the Federal Reserve Board’s Regulation II, which includes a cap on the fees that bank issuers may charge merchants for processing debit transactions. The court concluded that the rule is contrary to law and the Federal Reserve exceeded its statutory authority under the Durbin Amendment. The vacatur is currently stayed pending an anticipated appeal to the US Court of …
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 …
CFPB Reconsiders Section 1033 Rule Signaling Potential Overhaul of Personal Financial Data Rights Framework
The Consumer Financial Protection Bureau’s position on Section 1033 continues to evolve under the Trump administration. Following a request to vacate the 2024 Personal Financial Data Rights rule (PFDR), on July 29, 2025, the CFPB changed its position, announcing it would initiate a new rulemaking to reconsider the PFDR. On August 22, the CFPB published an advance notice of proposed rulemaking (ANPR) seeking public comment …
Open Banking Is on Ice as CFPB Seeks to Toss Its Own Rule
Cooley lawyers Obrea Poindexter and Palmer Quamme co-authored an article for Law360 about the Consumer Financial Protection Bureau’s bid to rescind its own rule, implementing Section 1033 of the Dodd-Frank Act concerning personal financial data rights. Read more ›
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 …