The SEC restructured its regional offices into three regions, each reporting to a deputy director of enforcement. The dismantling of the crypto unit endangers investors because crypto is rife with frauds, scams, and abuses.

FDIC delayed the implementation of a key depositor protection rule that requires banks to provide clear signs of deposit insurance to bank customers. Abuse of the FDIC sign and false claims of deposit insurance by nonbanks and crypto firms have been rampant and have harmed countless consumers who thought their deposits were protected by FDIC insurance when they were, in fact, not protected. This delay in compliance until 2026 for a rule that was finalized in 2023 will only allow more consumers to be misled and tricked by deceptive claims of deposit insurance, particularly on digital platforms.

Read Better Markets’ statement here. 

Staffing cuts come at a time when the FDIC already faces a shortage of bank examiners and is facing culture problems in the agency which have hurt morale. Moreover, the agency already was facing a large wave of retirements of some of its most senior, most experienced staff. A 2023 inspector general report warned that 38% of FDIC employees would be eligible for retirement by 2027, which will further weaken regulatory oversight.

The CFPB signals that it will continue certain enforcement actions—so far, especially those involving servicemembers and claims under the Military Lending Act.

Provides guidance on how the Division of Enforcement evaluates self-reporting, cooperation, and remediation when recommending enforcement actions. It establishes Mitigation Credit criteria that may reduce penalties for entities that demonstrate these efforts.

The CFTC says it’s reorganizing to better fight fraud, but this may soften oversight under the guise of “efficiency,” it risks turning the CFTC into a paper tiger just when strong enforcement is needed most.

The SEC allowed an ETF that intends to invest its assets in private credit to start trading. Private credit funds are risky for retail investors because the underlying assets are illiquid and hard to value.