To keep you informed of recent activities, below are several of the most significant federal and state events that have influenced the Consumer Financial Services industry over the past week.
Federal Activities
State Activities
On June 13, the U.S. Attorney’s Office for the District of Massachusetts announced that Gotbit Consulting LLC, a prominent cryptocurrency market maker, and its founder, Aleksei Andriunin, were sentenced for their roles in a market manipulation and fraud conspiracy. Andriunin, who pleaded guilty to wire fraud and conspiracy charges, received an eight-month prison sentence followed by a year of supervised release. Gotbit was ordered to forfeit approximately $23 million in seized cryptocurrency and was placed on a five-year probation, during which it must cease operations. The firm admitted to engaging in manipulative trades to inflate trading volumes for clients to secure listings on major exchanges. This case marks the third instance of a market maker facing criminal charges for wash trading in the cryptocurrency sector, with related civil enforcement actions brought by the Securities & Exchange Commission (SEC). For more information, click here.
On June 13, the SEC announced the appointment of Jamie Selway as the new director of the Division of Trading and Markets, effective June 17. SEC Chairman Paul S. Atkins praised Selway’s extensive experience in market structure and asset classes, expressing confidence in his ability to balance regulatory costs and benefits. Selway, formerly a partner at Sophron Advisors and a leader in various financial technology firms, has a distinguished career that includes roles at Investment Technology Group, Archipelago, and Goldman Sachs. He has also been active in industry committees and testified at congressional and SEC roundtables. Selway holds an M.S. in financial mathematics from the University of Chicago and a B.A. in mathematics and European history from Washington & Lee University. He expressed enthusiasm for advancing the SEC’s mission and fostering innovation in the financial markets. For more information, click here.
On June 12, the U.S. District Court for the Northern District of Illinois denied the joint motion by the Consumer Financial Protection Bureau (CFPB) and Townstone Financial, Inc. to vacate the stipulated final judgment and order, calling the CFPB’s attempt to refund Townstone’s civil money penalty for alleged redlining practices “breathtaking.” This decision comes after allegations of misconduct related to the case under former CFPB leadership. The CFPB initially settled with Townstone in November 2024, concluding the first redlining case against a nonbank mortgage lender. The settlement followed a Seventh Circuit decision affirming the applicability of Regulation B’s prohibition on “discouragement” to prospective applicants. Townstone was accused of discouraging African American applicants through statements made in its radio shows and podcasts. The case settled, with Townstone agreeing to pay a $105,000 penalty and accept a prohibition against future ECOA violations. In March 2025, the CFPB and Townstone jointly filed a Rule 60(b)(6) motion to vacate the settlement, citing flaws in the CFPB’s investigation and litigation, including alleged targeting based on the political views of Townstone’s owner. Federal district Judge Franklin Valderrama denied the motion to vacate the settlement, emphasizing the critical importance of preserving the finality of judgments. The court’s decision was grounded in the principle that “there must be an end to litigation someday,” underscoring that “free, calculated, deliberate choices are not to be relieved from.” For more information, click here.
On June 11, the U.S. Senate confirmed Andrew Hughes as the deputy secretary of the U.S. Department of Housing and Urban Development (HUD) with a vote of 51-43. Hughes will serve as HUD’s chief operating officer, working under the Trump administration and Secretary Scott Turner to reinforce HUD’s mission of fostering strong communities and promoting affordable homeownership and economic development. Secretary Turner praised Hughes as a servant leader, highlighting his leadership and commitment to the agency’s goals. Hughes, the youngest deputy secretary in HUD’s history, emphasized his dedication to expanding opportunities for rural, tribal, and urban communities. His nomination received endorsements from former HUD Secretary Ben Carson, Senator Tim Scott, and various housing organizations. Hughes previously served as HUD chief of staff. For more information, click here.
On June 10, the House Committees on Agriculture and Financial Services both favorably reported to the House H.R. 3633, the Digital Asset Market Clarity (CLARITY) Act (as amended). Both committees gave overwhelmingly bipartisan support for the bill with the Committee on Agriculture voting 47-6 and the Committee on Financial Services voting 32-19. Both committees voted down numerous proposed amendments by Democratic members aiming to curb fraud, address conflicts of interest, and prohibit government bailouts. The act was initially introduced on May 29, 2025 by Chairman Glenn “GT” Thompson (R-PA) and House Committee on Financial Services Chairman French Hill (R-AR) and among other things would claw back U.S. Securities and Exchange Commission jurisdiction and establish the Commodity Futures Trading Commission (CFTC) as the primary regulator of digital commodities and intermediaries. For more information, click here.
On June 10, Cara Petersen, the acting enforcement director of the CFPB, resigned, criticizing the Trump administration’s efforts to dismantle the agency. In her departure email, Petersen expressed concern over the administration’s impact on the CFPB’s core mission, stating that the current leadership shows no intention to enforce consumer protection laws effectively. For more information, click here.
On June 10, the CFTC announced an opportunity for public comment on the proposed renewal of information collection under Part 162 of its regulations, which pertains to the protection of consumer information under the Fair Credit Reporting Act (FCRA). This notice, published in the Federal Register, invites feedback on the necessity, accuracy, and burden of the proposed information collection, which aims to ensure privacy protections for consumer information held by entities under the CFTC’s jurisdiction. Comments are due by August 11, 2025, and can be submitted via FTC’s website or by mail. The initiative is part of the CFTC’s compliance with the Paperwork Reduction Act, which mandates federal agencies to seek public input on information collection activities. For more information, click here.
On June 9, the Crypto Task Force roundtable in Washington D.C. featured significant discussions led by Chairman Paul S. Atkins, Commissioner Hester M. Peirce, and Commissioner Caroline A. Crenshaw. Atkins emphasized the alignment of decentralized finance (DeFi) with American values and regulatory clarity to foster innovation in blockchain technology. Peirce highlighted the importance of protecting First Amendment rights in the publication of DeFi software and stressed the need for the SEC to focus on regulating financial service providers rather than software developers. Commissioner Crenshaw reflected on the diverse viewpoints gathered during the roundtables, acknowledging the complexity of crypto regulation and the need for a thoughtful rulemaking process. Together, these speeches underscored the SEC’s commitment to balancing innovation with investor protection in the evolving crypto landscape. For more information, click here, here, and here.
On June 9, the U.S. Department of Justice unsealed a 22-count indictment against Iurii Gugnin, also known as Iurii Mashukov and George Goognin, charging him with evading sanctions and export controls, defrauding financial institutions, and violating the Bank Secrecy Act. Gugnin, a New York resident and Russian citizen, allegedly used his cryptocurrency company, Evita, to launder over $500 million through U.S. banks and cryptocurrency exchanges, facilitating transactions with sanctioned Russian banks. The charges include wire and bank fraud, conspiracy to defraud the United States, and operating an unlicensed money transmitting business, among others. If convicted, Gugnin faces significant prison time for each count. For more information, click here.
On June 9, the National Association of Attorneys General (NAAG) announced that 42 attorneys general have signed a bipartisan letter urging Congress to pass the Homebuyers Privacy Protection Act of 2025 (H.R. 2808 and S. 1467). This legislation aims to curb the abusive use of mortgage credit trigger leads, which have led to a surge in unsolicited and misleading mortgage solicitations following credit inquiries. The letter, addressed to the leadership of the House Committee on Financial Services and the Senate Banking Committee, emphasizes the need for federal action to provide consistent consumer protections nationwide. The proposed act seeks to balance consumer protection with market competition by allowing trigger leads only in narrowly defined, consumer-consented circumstances. The coalition of attorneys general highlights that while states have attempted to address this issue, comprehensive federal legislation is necessary to effectively protect consumer privacy and reduce unwanted solicitations. For more information, click here.
On June 9, the CFPB filed a motion to reopen a case against Student Loan Pro and its affiliates in the U.S. District Court for the Central District of California. The case, which targets deceptive student loan debt-relief alleges that Student Loan Pro, operated by Judith Noh and Syed Faisal Gilani, charged unlawful advance fees and misled consumers about the necessity of these fees for federal student loan services. The CFPB’s complaint highlights violations of the Telemarketing Sales Rule and the Consumer Financial Protection Act, accusing the company of engaging in abusive telemarketing practices and concealing Gilani’s role as the de facto owner. The proceedings were initially stayed due to a change in CFPB leadership, but Acting Director Russell Vought has now authorized the continuation of the case. For more information, click here.
On June 9, the U.S. Attorney’s Office for the Central District of California announced that five men have pleaded guilty to their roles in laundering over $36.9 million from victims of an international digital asset investment scam. The scam, operated from centers in Cambodia, involved inducing U.S. victims to invest in fraudulent digital assets, with funds being laundered through U.S. shell companies and international bank accounts. The defendants managed networks of money launderers and facilitated the conversion of victim funds into stablecoin Tether, which was then transferred to digital asset wallets controlled by co-conspirators. For more information, click here.
On June 9, the Office of the Comptroller of the Currency (OCC) responded to a request from Brandon Milhorn, president and CEO of the Conference of State Bank Supervisors, to rescind its preemption regulations in light of recent executive orders aimed at ensuring lawful governance and reducing anti-competitive regulatory barriers. The OCC affirmed that its preemption regulations are consistent with federal law, Supreme Court precedent, and the executive orders. The OCC emphasized that federal preemption is essential for the dual banking system, allowing federally and state-chartered banks to coexist and compete effectively. The OCC’s stance is that these regulations support efficient operations and contribute to national economic growth by enabling banks to operate across state lines under a uniform set of rules. The OCC reiterated its commitment to maintaining these regulations to ensure the continued strength of the nation’s banking system. For more information, click here.
On June 6, the U.S. Senate Committee on Banking, Housing, and Urban Affairs announced the release of legislative text for the Senate Republicans’ One Big Beautiful Bill. This initiative aims to strengthen the American economy by reducing waste and duplication in financial regulation while enhancing national security measures. A notable amendment within the bill targets the CFPB, proposing to decrease its funding cap. Specifically, § 30001 alters the CFPB’s ability to self-fund by reducing its entitlement from the Federal Reserve’s inflation-adjusted profits in 2009 from 12% to 0%. This change is designed to save taxpayer dollars, amounting to $6.36 billion, without impacting the CFPB’s statutory functions, as the Bureau retains the ability to request funds from Congress. For more information, click here.
On June 6, Michael E. Horowitz was appointed as the inspector general for the Federal Reserve Board and the CFPB, effective June 30. This dual role involves overseeing both agencies to enhance their efficiency and effectiveness while preventing waste, fraud, and abuse. Horowitz succeeds Mark Bialek, who retired after nearly 14 years in the position. With over 35 years of experience in law and public administration, Horowitz previously served as the inspector general for the Department of Justice and chaired a committee overseeing $5 trillion in pandemic relief spending. His extensive background includes roles as an assistant U.S. attorney and chief of the public corruption unit in New York. Horowitz holds a J.D. from Harvard Law School and a B.A. from Brandeis University. For more information, click here.
On June 13, the New Jersey Division of Consumer Affairs (NJ DCA) issued an urgent alert to licensed professionals about a scam targeting licensees and applicants. The scam involves emails falsely instructing recipients to download “new license software,” which actually installs malicious software on their devices. The NJ DCA emphasized that it does not require any software downloads for license renewals or applications and urged individuals to avoid clicking on suspicious links. The NJ DCA encourages reporting such emails to their office, the Division of Criminal Justice, or the Federal Trade Commission. For more information, click here.
On June 12, the Commissioner of Banks in Massachusetts issued a temporary order to cease and desist against ATG Credit, LLC, a debt collection company based in Chicago, for violations of Massachusetts consumer protection laws. The Division of Banks found that ATG Credit failed to provide access to its books and records, maintain financial responsibility, and submit required financial statements, reflecting a negative net worth. These actions prompted the commissioner to order ATG Credit to immediately halt debt collection activities in Massachusetts and provide detailed records of funds collected from consumers. The order, effective immediately, mandates ATG Credit to cease operations and submit a response within five days, with the possibility of becoming permanent if no hearing is requested within twenty days. For more information, click here.
On June 10, Nevada Governor Joe Lombardo vetoed Assembly Bill 204 (AB 204) citing concerns over its approach to reforming medical debt collection practices. The governor criticized the bill for excessive government intrusion into private contracts and warned that its provisions, such as a 180-day waiting period and complex notification requirements, could increase administrative costs for healthcare providers and raise healthcare costs for Nevada families. Additionally, the governor expressed concerns that the bill’s broad restrictions on collection efforts might incentivize non-payment, unfairly impacting patients who meet their financial obligations and straining small healthcare providers. The emergency-related delay provisions were also deemed problematic, as they could halt debt collection statewide during emergencies, even in unaffected areas. For more information, click here.
On June 10, Connecticut Governor Ned Lamont approved Substitute House Bill No. 7083, which introduces various revisions to the state’s credit union statutes. The act addresses nonmember payments, member business loans, charitable contributions, extensions of credit, capital, and net worth. Key changes include definitions for terms such as “appointed director,” “branch,” and “capital,” and adjustments to the handling of nonmember payments and member business loans. The act also outlines procedures for charitable contributions and establishes conflict of interest policies for credit unions. These revisions aim to enhance the operational framework and governance of credit unions in Connecticut, effective July 1, 2025. For more information, click here.
On June 9, New York City Comptroller Brad Lander issued a call to action for City Hall and Albany leaders to modernize consumer financial protections in response to recent rollbacks by the Trump administration, which have significantly weakened the CFPB. According to the comptroller, the dismantling of the CFPB, including a drastic reduction in staff, has left millions vulnerable to predatory practices by lenders and financial institutions. Lander’s report emphasizes the need to close regulatory gaps, enhance banking access, and expand consumer rights. It advocates for stronger enforcement powers, affordable banking options, regulation of high-cost non-bank financial products, and protection of consumer rights. The report urges leveraging the New York City Banking Commission to hold banks accountable and calls for legislative actions such as passing the FAIR Business Practices Act and the End Loansharking Act, updating privacy laws, and establishing a consumer financial complaint database to safeguard New Yorkers against financial abuse. For more information, click here.
On June 9, Maine enacted the “Act to Prevent Financial Exploitation of Vulnerable Adults,” aimed at safeguarding older and incapacitated individuals from financial abuse. This legislation empowers financial institutions and credit unions to disclose financial records to the Department of Health and Human Services and law enforcement agencies when there is suspicion of exploitation. It allows for the designation of a trusted contact person and permits delaying disbursements if exploitation is suspected. The act provides immunity to financial institutions acting in good faith and mandates reporting to law enforcement. That same day, the state also enacted the “Act to Strengthen Consumer Protections by Prohibiting the Report of Medical Debt on Consumer Reports,” which prevents consumer reporting agencies from including medical debt in consumer reports. This law aims to protect consumers from the negative impact of medical debt on their credit profiles. For more information, click here and here.
