The FDIC eased standards for terminating cease-and-desist orders, which are issued to remedy banking violations. Under the updated policy, an order may now be lifted when a bank has achieved substantial compliance, rather than demonstrating full compliance with the order.

Cease-and-desist orders are a key enforcement tool in the banking sector, used to halt unsafe, unsound, or illegal activities and require the institution or individuals involved to take corrective action.

By lowering the standard for terminating these orders, culpable institutions or individuals will not have to meet all corrective actions outlined in the order. Weaker enforcement and oversight increases the risk that unresolved problems will persist, potentially leading to greater instability in the banking system.

The OCC clarifies that it will consider debanking factors in its assessments of licensing filings (such as new bank applications, mergers, or other such changes). It will also consider such factors in Community Reinvestment Act (“CRA”) evaluations.

While the OCC, and all regulators, should absolutely protect against unlawful and discriminatory actions by banks, this action by the OCC is particularly egregious and disingenuous because it is not focused at all on discrimination of low-income borrowers or other underserved communities, which the CRA is supposed to protect.

Eliminating supervisors will leave the SEC with an inexperienced staff unable to best protect investors.

The SEC and CFTC issued a joint statement saying that SEC and CFTC-registered exchanges are not prohibited from facilitating the trading of certain spot crypto asset products.

The guidance paves the way for the trading of crypto asset products without sufficient investor protections.

The CFTC issued guidance outlining a registration framework that allows offshore cryptocurrency exchanges involved in derivatives trading to operate in the United States as Foreign Boards of Trade (FBOTS).

Extending U.S. market access to offshore exchanges, particularly ones with a history of misconduct (ex. Binance) raises investor protection concerns.

Our economy and financial system depend on the Fed’s independence. The fact that the U.S. is the safest and largest financial market in the world, dominating virtually all global transactions due to its size, liquidity, safety, creditworthiness, and financial stability, is because of the trust that the world has in the ability of the Fed to do its job.

Trump’s baseless attempt to fire Governor Cook has nothing to do with her qualifications to carry out her duties as a member of the Board of Governors and everything to do with Trump’s mission to take control of the Fed and interest rates. Moreover, Trump’s attacks on the Fed are not happening in a vacuum; they are happening alongside a wave of misguided, deregulatory actions that will shift even more money and power to Wall Street and crush the most vulnerable on Main Street.