All in Regulatory Update

On May 19, 2026, President Donald Trump signed an executive order aimed at strengthening protections against financial fraud, illicit finance, and credit risks tied to unauthorized employment and cross-border financial activity. The order directs several federal agencies, including the Treasury, the CFPB, and federal banking regulators, to issue guidance and consider regulatory changes impacting banks, credit unions, and other financial institutions.

On May 15, 2026, the FDIC updated its Q&As on regulation governing FDIC Official Signs, Advertisement of Membership, False Advertising, Misrepresentation of Insured Status, and Misuse of the FDIC Name or Logo, to reflect the 2026 amendments to the rule (part 328). The Q&As provide answers to a collection of questions from stakeholders, including insured depository institutions (IDIs), trade associations, technology companies, vendors, and other entities, and are intended to promote transparency and support implementation efforts.

On May 15, 2026, the NCUA a proposed rule outlining the operational and risk management standards for an NCUA-licensed permitted payment stablecoin issuer (PPSI), as outlined in the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. This supplements the February 2026 proposed regulations to govern investments in and licensing of PPSIs subject to the NCUA's jurisdiction. 

The proposed rule outlines rules for NCUA-licensed PPSIs and certain custody activities by federally insured credit unions and licensed issuers. It applies only to payment stablecoins under the NCUA’s authority and includes updates related to share insurance, tokenized shares, and other related regulations. The rules would take effect under the timeline set by the GENIUS Act and may be updated as the stablecoin industry evolves.

Comments on the proposed rule will be accepted until July 17, 2026.

Read the NCUA’s press release here.

On May 6, 2026, FinCEN updated several of its Q&As on Customer Due Diligence Requirements for Financial Institutions to align with the exceptive relief order issued on February 13, 2026. The reissued FAQs also consolidate three sets of previously issued FAQs published in 2016, 2018, and 2020 into a single document.

On May 1, 2026, Federal Reserve Vice Chairman Michelle W. Bowman,  at a Financial Stability Oversight Council (FSOC) roundtable, discussed the increasing use of artificial intelligence (AI) in the banking industry and the need for balanced regulatory oversight. Bowman highlighted that AI is increasingly used in financial institutions for cybersecurity, operations, and customer services, providing major efficiency and security advantages.