Welcome to Goodwin's Financial Services News Roundup. Our newsletter highlights important legal, regulatory, and business developments related to financial services and banking.
In this issue
- CFPB Withdraws Proposed Rule on Data Broker Practices
- CFPB Rescinds Over 60 Pieces of Guidance
- OCC Clarifies Bank Authority to Engage in Crypto-Asset Custody and Execution Services
- OCC Issues Interim Final Rule on Bank Mergers
- OCC Releases RFI on Community Bank Digitization
1. CFPB Withdraws Proposed Rule on Data Broker Practices
On May 15, the Consumer Financial Protection Bureau (CFPB) withdrew its proposed rule, Protecting Americans from Harmful Data Broker Practices (Regulation V), via notice in the Federal Register. The proposed rule aimed to rein in data brokers that sell Americans' sensitive personal and financial information by, among other things, treating data brokers as "consumer reporting agencies" under the Fair Credit Reporting Act (FCRA) and requiring them to comply with accuracy requirements, provide consumers access to their information, and maintain safeguards against misuse. The CFPB's stated rationale for withdrawing the proposed rule included that the CFPB found legislative rulemaking "not necessary or appropriate at this time to address the subject matter" of the proposed rule, concerns raised by commenters, and misalignment of the proposed rule with the CFPB's current interpretation of the FCRA, which the CFPB noted is being revised, and the CFPB's changed policy objectives. The CFPB advised that it will issue a rule implementing the relevant definitions and provisions of the FCRA only when and if the CFPB determines it necessary to do so.
2. CFPB Rescinds Over 60 Pieces of Guidance
On May 12, the CFPB rescinded over 60 pieces of regulatory guidance it had issued since 2011, including bulletins, policy statements, final rules, advisory opinions, and nearly all consumer financial protection circulars. Among the rescinded guidance is the CFPB's 2024 interpretive rule on "Buy Now, Pay Later" (BNPL) loans, clarifying that issuers of BNPL products qualify as card issuers under Regulation Z. This rule was subject to an ongoing lawsuit in the US District Court for the District of Columbia, and the CFPB previously announced on May 6 that it would no longer prioritize enforcement actions taken based on that interpretive rule and that it planned to rescind it. Participants in the financial services industry should review the full list of rescissions to understand the full scope of how the CFPB's announcement may impact their business operations and compliance program.
3. OCC Clarifies Bank Authority to Engage in Crypto-Asset Custody and Execution Services
On May 7, the Office of the Comptroller of the Currency (OCC) issued Interpretive Letter 1184, which confirms that national banks and federal savings associations may provide crypto-asset custody and execution services, including buying and selling assets at a customer's direction. This aligns with prior OCC guidance in Interpretive Letter 1170, affirming the permissibility of crypto-asset custody services. The OCC also clarified that banks may outsource crypto-asset custody and execution services to third parties, provided banks implement appropriate third-party risk management practices. Banks must also conduct these activities in a safe and sound manner and in compliance with applicable laws and regulations.
4. OCC Issues Interim Final Rule on Bank Mergers
On May 8, the OCC adopted an interim final rule rescinding the OCC's 2024 policy statement on its review of applications under the Bank Merger Act and restoring a streamlined application and expedited review to the OCC's procedures for evaluating applications under the Bank Merger Act. Acting Comptroller of the Currency Rodney E. Hood stated that the goal of the interim final rule is to reduce burden and uncertainty for banks, support an effective regulatory framework that streamlines the merger process for well-managed and well-capitalized banks, and promote the OCC's goal of encouraging competition and facilitating economic growth and innovation.
5. OCC Releases RFI on Community Bank Digitization
On May 5, the OCC released a request for information (RFI) on community banks' engagement with digitalization. The OCC is seeking input from community banks and relevant stakeholders regarding (1) the key challenges and barriers that community banks are facing in adopting and implementing digitization strategies or initiatives; (2) how community banks' board of directors are engaged in overseeing and supporting digitization strategies and initiatives; (3) how potential budget constraints are impacting community banks' ability to adopt or maintain digitalization strategies; (4) to what extent community banks are sharing data with third-party providers as part of a digitalization strategy or initiative; (5) how community banks are managing the ongoing risks of digitalization that may result in material financial risks; and (6) how regulatory and compliance requirements are impacting community banks' decisions to undertake digitalization strategies or initiatives. Comments must be received by June 26.
Check Out Goodwin's Latest Industry Insights
So You Want to Be a Bank?
Amid signals of a more welcoming regulatory climate for
new bank formation, this series of articles by partners in our
Banking practice examines the advantages of bank charters,
considers the spectrum of available charter options, and highlights
important regulations that entities must navigate once chartered.
To read our insights on this topic, click here.
Indiana Enacts Law Regulating Earned Wage Access
Services
Indiana has enacted a law that establishes a
financial-services oversight regime for earned wage access
services, also known as on-demand pay services, which allow workers
to access earned but unpaid income before payday. The governor
approved the legislation (HB 1125) on May 6, 2025. The law imposes
licensing and other substantive requirements on providers. It will
be administered by the Division of Consumer Credit within the
Department of Financial Institutions. The law also provides greater
regulatory certainty for these innovative financial services in the
state. To read more, click here.
Fighting Market Abuse in Crypto-Assets: ESMA Guidelines
Under MiCA
Published on April 29, the ESMA final report (ESMA75-453128700-1408) outlines the guidelines
for competent national authorities (NCAs) to prevent and detect
market abuse in the context of the Markets in Crypto Assets
Regulation (2023/1114) (MiCA). This document is part of the effort
to ensure consistent and effective supervision of crypto-assets
markets across the European Union. To read more, click here.
Shifting Priorities: Bureau Memorandum Provides Insight
into New Era for CFPB
The first 100 days of the Trump administration have
included dramatic changes at the CFPB, which are part of broader shifts in financial regulation
under the new administration. The agency has retreated from
many of its enforcement litigations, initiated reductions in force
currently subject to legal challenges in federal court, and most
recently, explained its shifting priorities for consumer protection
in a detailed internal memorandum. To read more, click here.
UK Regulatory Capital Reforms: A Boost for Start-Up
Founders and Venture Capital Investors?
In its recent consultation [CP25/10: Definition of capital for FCA investment
firms] (Consultation), the Financial Conduct Authority (FCA)
has stated that it wants to amend its capital rules for investment
firms — such as wealth managers, financial advisers, and
brokers — set out in the MIFIDPRU section of the FCA
rules. The amendments are designed to make regulatory compliance
more straightforward and tailored to the needs of investment firms.
To read more, click here.
Corporate Transparency Act (CTA) Resource
Center
Go-to resource and compliance toolkit.
Bank Failure Knowledge
Visit our knowledge center for timely updates and
analysis on important developments related to bank failures.
Consumer Finance Insights (CFI) Blog
The latest on consumer finance regulation,
litigation, and enforcement.
Fintech Flash
The latest news and developments for the rapidly
evolving fintech industry – which often can change in a
flash.
New Directions: The Trump Administration
Strategic insights and guidance for businesses
navigating shifts in US policy and regulation.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
