The SEC dismissed the first case it had filed alleging that an investment adviser violated the rule limiting the amount of illiquid assets mutual funds could hold to 15% of its portfolio. The failure to enforce the liquidity rule increases the risk that mutual funds will be unable to meet their redemption obligations.

The CFPB’s new leadership, under Trump-appointed Acting Director Russell Vought, has joined with industry and convinced a federal court to vacate the CFPB’s Medical Debt Rule. The Medical Debt Rule would have prohibited credit reporting agencies from including (often inaccurate) alleged medical debts on consumers’ credit reports, affecting millions of Americans’ ability to secure credit, housing, and employment.

Jonathan Gould, a supporter of deregulation and crypto, was confirmed to lead the Office of the Comptroller of the Currency. He will be in charge of the supervision of nearly 1,000 banks that together hold $16 trillion in total assets, or nearly two out of every three dollars in the banking system.

Related Better Markets material: Five Key Questions to Ask Trump’s Comptroller of the Currency Nominee (3/26/25)

Fed proposes to weaken the supervisory rating system for large banks by lowering the standard for what qualifies as a “well-managed” rating. This change reduces the effectiveness and value of the supervisory rating system for large banks. It will harm the American people and the economy by ignoring threats to the health of large banks that could threaten financial stability.

The CFPB has placed its top fair lending official on administrative leave without explanation. J. Frank Vespa-Papaleo, the CFPB’s assistant director for the Office of Fair Lending and Equal Opportunity, was placed on administrative leave on Monday, July 7th, suggesting that work within this division has dramatically slowed down and that new CFPB leadership has little interest in fair lending matters.

The Trump Administration’s “Big Beautiful Spending Bill,” signed into law on July 4th, 2025, has cut the source of the CFPB’s funding by nearly 50%. The CFPB is funded through the Federal Reserve instead of the congressional appropriations process. But under the terms of the spending bill, the CFPB’s funding would be cut from 12% of the Federal Reserve’s earnings to 6.5% of the central bank’s earnings, a drastic cut that will undermine the agency’s ability to fulfill its mission.