FinReg Currents

Keep up with the latest legal and industry insights, news, and events from MoFo

Each week of the first 100 days of the new Trump administration, we will publish updates on key federal financial services regulatory and related developments.

This week, we review the following developments as of Wednesday:

Consumer Financial Protection Bureau (CFPB) Review of Past Guidance
CFPB Credit Card Late Fee Rule Update
CFPB Regulatory Relief Nonbank Registry
White House Executive Order on Regulation Repeal and Treasury Response
Comptroller of the Currency on Office of the Comptroller of the Currency (OCC) Priorities
Update on CFPB Shutdown Litigation
Securities and Exchange Commission (SEC) Roundtable on Crypto
SEC Statement on Crypto Asset Market Registration and Offerings of Securities
Senate Banking Committee Bowman Nomination Hearing
Commodity Futures Trading Commission (CFTC) Staff Interpretation on Treatment of Window Foreign Exchange (FX) Forwards and Package FX Spot Transactions

CFPB Review of Past Guidance

According to news reports, on April 11, 2025, CFPB Acting Director Russell Vought sent an internal memo to CFPB employees instructing them to cease the use of guidance documents. The memo orders the heads of CFPB divisions to review existing guidance for withdrawal, specifically looking for guidance that “has unlawfully regulated private parties.” The memo attached more than 120 pieces of guidance that Vought specially designated for review, including guidance relating to fintech products. Due April 25, the review by each CFPB division requires justification for any guidance that should be retained, and all other guidance will be rescinded after review by CFPB leaders.

According to the memo, future guidance should state that it is not binding and should not include “mandatory language” unless quoting from a statute or rule, and the guidance documents should include a clear reference to the underlying law they explain. Vought wrote that any existing guidance that does not comply with these standards should be rescinded, and that the “overwhelming majority” of guidance fails to meet these standards and, thus, will be rescinded.

CFPB Credit Card Late Fee Rule Update

On April 15, 2025, a federal district court judge granted a joint motion by the CFPB and trade associations to vacate the credit card late fee rule, which would have lowered credit card late fees to $8. The judge had previously ruled on December 6, 2024 that the credit card late fee rule was in violation of the Credit Card Accountability Responsibility and Disclosure Act and the Administrative Procedure Act. The case was dismissed with prejudice.

CFPB Regulatory Relief Nonbank Registry

On April 11, 2025, the CFPB released a statement asserting that it will not “prioritize enforcement or supervision actions” for failure to meet registration deadlines for the nonbank registry of entities subject to agency and court orders. The CFPB states that it will look toward “pressing threats to consumers” for future enforcement and supervision activities. While the regulation requiring registration for the nonbank registry remains in effect, the CFPB stated that it plans to rescind or narrow the regulation in the future.

White House Executive Order on Regulation Repeal and Treasury Response

On April 9, 2025, President Trump signed an executive order instructing heads of all executive departments and agencies to review and repeal any “unlawful” regulations. The executive order lists 10 U.S. Supreme Court decisions, including Loper Bright Enterprises v. Raimondo and SEC v. Jarkesy, to use when evaluating regulations. The order states that agencies should repeal regulations without a notice and comment period using the “good cause” exemption in the Administrative Procedure Act. The order provides a 60-day deadline to determine which regulations are unlawful, and gives a further 30 days to submit to the Office of Management and Budget’s Office of Information and Regulatory Affairs a summary of each regulation not targeted for repeal.

On April 15, 2025, the Treasury Department published a direct final rule removing “regulations and portions of regulations that are no longer necessary, or have no current or future applicability.” Among other things, the regulations marked for repeal include two regulations under the Federal Financing Bank Act of 1973 and a regulation on the adjustment of civil penalties for violations of the Bank Secrecy Act, which is codified elsewhere. The rule will be effective June 16, 2025, if no significant adverse comments are received by May 15, 2025.

Comptroller of the Currency on OCC Priorities

In April 16 remarks at the Exchequer Club, Acting Comptroller of the Currency Rodney Hood discussed four priorities for the OCC: reducing regulatory burden, promoting financial inclusion, embracing bank-fintech partnerships, and expanding responsible bank activities involving digital assets. His remarks focused on his commitment to tailoring oversight to fit banks, using innovation to help provide access to financial services, and supporting innovation by banks in the fintech and digital asset space.

Update on CFPB Shutdown Litigation

On April 11, 2025, the U.S. Court of Appeals for the D.C. Circuit filed an order finding that the district court’s March 28, 2025 order that granted a preliminary injunction was overly broad and is stayed in part. The decision allows for the Trump administration to fire employees after a “particularized assessment” and determines that probationary employees do not need to be rehired. However, other aspects of the March 28 injunction remain in effect, including a pause on contract cancellations.

SEC Roundtable on Crypto Regulation Tailoring

On April 11, 2025, the SEC hosted the second of five roundtables discussing the regulation of cryptocurrency, specifically the tailoring of regulation for crypto trading. The roundtable included industry representatives, investors, and cryptocurrency law experts. In his remarks at the roundtable, Acting Chairman Mark Uyeda pointed out issues with the fragmented state licensing regime for crypto trading and mentioned the possibility of a “time-limited, conditional exemptive relief framework” to “allow for greater innovation with blockchain technology” while the long-term federal regulatory regime is developed. In her remarks, SEC Commissioner Crenshaw expressed concern about a “mismatch between investor expectation and reality” in trading cryptocurrencies that are not registered with a regulator.

Crypto Asset Market Registration and Offerings of Securities SEC statement

On April 10, 2025, the SEC Staff in the Division of Corporation Finance released a statement to provide clarity for offerings and registration of securities in crypto asset markets under federal securities laws. Though the Crypto Task Force is seeking a regulatory framework for crypto, the staff statement details the current disclosures required for securities in crypto markets under the Securities Act of 1933 and the Securities Exchange Act of 1934, including a description of business, material risk factors, description of securities, management of the issuer, and financial statements. The statement does not discuss whether crypto assets are a security, but instead raises components of disclosure specific to securities products in the crypto asset sector.

Senate Banking Committee Bowman Nomination Hearing

On April 10, 2025, the Senate Banking Committee held a nomination hearing for Michelle Bowman to be the Vice Chair for Supervision of the Federal Reserve Board (FRB). In her testimony, Bowman committed to reforming bank regulation to be more pragmatic and tailored, as well as prioritizing innovation. She also stated the importance of transparency by regulators in supervision and regulation. In his opening remarks, Senate Banking Committee Chairman Scott (R-S.C.) expressed support for her qualifications in ensuring that the FRB “operates as an independent institution void of politics.” In her remarks, Ranking Member Warren (D-Mass.) criticized Bowman’s support of bank deregulation.

CFTC Staff Interpretation on Treatment of Window FX Forwards and Package FX Spot Transactions

On April 9, 2025, the CFTC Staff issued CFTC Letter No. 25-10, which clarifies the Staff’s view of the regulatory treatment of the following foreign exchange products (each as described in the letter):

(1) Window FX Forward Transactions: The Staff’s view is that these should be considered “foreign exchange forwards” and, therefore, exempt from most, but not all, of the CFTC’s swaps regulations as they remain subject to the CFTC’s trade reporting requirements, anti-evasion authority, and business-conduct standards.

(2) Package Spot FX Transactions: The Staff’s view is that these are spot transactions and, therefore, not “swaps” or “foreign exchange swaps” and are, therefore, not subject to any of the CFTC’s swaps regulations.

For more details on any of these developments, or to discuss how these changes may impact your business, please reach out to our team. Stay tuned for next week’s update, where we will continue to bring you the latest in federal financial services regulatory and related developments.

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