All in Regulatory Update

CFPB Faces Lawsuit Over Changes to Fair Lending Enforcement

Adam Witmer
Regulatory Update, Fair Lending

On May 28, 2026, the ABA Banking Journal reported that a coalition of consumer groups and fair lending compliance firms has filed a lawsuit to prevent the CFPB from removing disparate impact as a prohibited practice from Regulation B, which implements the Equal Credit Opportunity Act (ECOA). The federal agencies recently removed disparate impact liability from their supervision and enforcement activities following an April 2025 executive order directing agencies to eliminate its use in all regulatory and enforcement contexts.

OFAC Updates SDN List

Adam Witmer
BSA, Regulatory Update

On May 28, 2026, the OFAC updated its Specially Designated Nationals and Blocked Persons (SDN) List by removing sanctions on 76 outdated targets. According to its press release, the removals are part of Treasury’s ongoing sanctions modernization initiative.

FDIC Proposes BSA and Sanctions Rules for Stablecoin Issuers

Adam Witmer
BSA, Regulatory Update

On May 22, 2026, the FDIC Board of Directors approved a proposed rule that would implement BSA and sanctions compliance standards applicable to FDIC-supervised permitted payment stablecoin issuers (PPSIs) as required by the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act).  The FDIC is the primary Federal regulator of PPSIs that are subsidiaries of insured state nonmember banks and state savings associations approved by the FDIC to issue payment stablecoins.

Trump E.O. on Integrating Tecnology and Innovation Into Regulatory Frameworks

Adam Witmer
Regulatory Update

On May 19, 2026, President Donald Trump signed an executive order aimed at reducing regulatory barriers for financial technology (fintech) firms and encouraging greater innovation in the financial services industry. The order directs federal financial regulators to review existing regulations, supervisory practices, and application processes that may limit fintech growth, partnerships, and access to the traditional banking system.

President Trump Issues E.O. on Restoring Integrity to the Financial System

Paula Parras
Regulatory Update, BSA

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.

FDIC Updates the FDIC Official Signs and Advertising Requirements Q&As

Adam Witmer
Regulatory Update

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.

NCUA Issues Proposed Rule for Permitted Payment Stablecoin Issuer Standards

Adam Witmer
Regulatory Update

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.

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