On December 16, the Federal Reserve (Fed) hosted its annual Fair Lending Interagency Webinar, during which it, the National Credit Union Administration (NCUA) and the Consumer Financial Protection Bureau (CFPB) offered insight into their fair lending programs. The Fed highlighted its risk-focused approach to fair lending supervision, emphasizing the importance of tailored risk assessments, recurring training and robust monitoring of discretionary lending practices. Examiners continue …
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Showdown: New Executive Order Puts Federal Government and States on a Collision Course Over AI Regulation
Last week, the White House issued a new executive order (EO) seeking to limit states’ regulation of artificial intelligence (AI) and instead create a uniform national AI policy. The EO does not preempt state AI laws, but it mobilizes federal agencies to take actions that may curtail state efforts to enforce their laws and regulate AI. The EO directs the Justice Department to create a …
FDIC Paves Way for Banks to Issue Stablecoins in New Rulemaking
The Federal Deposit Insurance Corporation (FDIC) issued a notice of proposed rulemaking (NPRM) to establish the application process for FDIC-supervised banks seeking to issue payment stablecoins through subsidiaries. The rulemaking is the first action by the FDIC to implement the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act), which establishes a federal regulatory system for stablecoins. Background Enacted in July 2025, the …
OCC Releases Initial Findings From Debanking Review
The Office of the Comptroller of the Currency (OCC) recently shared initial findings from its ongoing review of potential debanking activities at the nine largest national banks it supervises. The review is part of the agency’s effort to implement mandates under Executive Order 14331, which directs “Federal banking regulators,” including the OCC, to remediate past instances, and prevent future acts of, politicized or unlawful debanking. The executive …
BNPL Market Remains Strong, Per CFPB Report
The Consumer Financial Protection Bureau (CFPB) released a data spotlight on the buy now, pay later (BNPL) market. Using data about the BNPL market for the years 2022 and 2023 from six large BNPL providers, the report describes trends and figures in BNPL market growth, borrower usage, late fees and charge‑offs. While there are different versions of the BNPL product, the report focuses on four-installment, …
Personal Financial Data Rights Interim Final Rule Expected Soon
The Consumer Financial Protection Bureau’s (CFPB) open banking rulemaking is at a pivotal moment. After the US District Court for the Eastern District of Kentucky enjoined enforcement of the CFPB’s Personal Financial Data Rights (PFDR) rule in October, the CFPB this week disclosed in a court filing that it will issue an interim final rule under Section 1033 of the Dodd-Frank Act. The CFPB recently …
DOJ Ends Disparate-Impact Liability Under Title VI, Narrowing Civil Rights Enforcement
On December 9, 2025, the US Department of Justice (DOJ) issued a final rule eliminating “disparate-impact” liability from its Title VI regulations. The final rule rescinds portions of DOJ’s Title VI regulations that allowed disparate-impact claims (i.e., challenges to neutral policies with disproportionate effects on protected groups) and aligns DOJ’s enforcement approach with the administration’s broader campaign to curtail disparate-impact liability across federal agencies. This …
State Attorneys General Step Up Oversight of BNPL Programs
A coalition of seven attorneys general recently requested information from six buy now, pay later (BNPL) providers to evaluate their BNPL programs and whether they comply with consumer protection laws. The coalition is comprised of attorneys general from California, Colorado, Connecticut, Illinois, Minnesota, North Carolina and Wisconsin, with Connecticut and North Carolina leading the inquiry. Company responses are due by December 31. The inquiry follows …
FinCEN’s NPRM Signals an Expanded Use of Section 311
The Financial Crimes Enforcement Network (FinCEN) recently issued a notice of proposed rulemaking (NPRM), pursuant to section 311 of the USA PATRIOT Act, finding that a class of transactions involving 10 Mexican gambling establishments are of “primary money laundering concern.” According to the press release announcing the NPRM, FinCEN has assessed that the gambling establishments have “directly and indirectly” facilitated money laundering benefiting a Mexico-based …
CFPB Seeks to Narrow Section 1071 Rule
The Consumer Financial Protection Bureau (CFPB) recently released a proposed rule to scale back the 2023 final small business lending data collection rule (2023 final rule). The proposed rule would significantly narrow the scope of the 2023 final rule by redefining “small business,” limiting the types of transactions and institutions covered by the rule, removing several discretionary data points, and replacing a tiered compliance schedule …