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

Federal Activities:

• On July 6, the EU announced new regulations for cryptocurrency exchanges, effective December 30. These exchanges must comply with the “Travel Rule,” which mandates detailed reporting on transactions to combat money laundering and terrorist financing. This rule requires exchanges to collect and transmit information on the sender, recipient, and transaction nature. While compliance will demand significant investment, the EU believes the benefits will outweigh the costs, fostering a safer and more transparent crypto market. For more information, click here.
• On July 5, Visa and Tangem AG announced a partnership to launch a combined payment card and crypto wallet. The card allows Tangem users to make payments using their crypto or stablecoin balances at Visa-accepting merchants. Unlike traditional custodial solutions, Tangem’s card embeds a private key within the chip, ensuring users maintain control of their assets. This collaboration aims to bridge the gap between traditional banking and digital assets, enhancing usability and acceptance in the evolving crypto landscape. For more information, click here.
• On July 1, the Consumer Financial Protection Bureau (CFPB) and the Federal Housing Finance Agency (FHFA) published updated loan-level data for public use collected through the National Survey of Mortgage Originations (NSMO). The data also provide updated mortgage performance and credit information for a nationally representative sample of mortgage borrowers from 2013 to 2021. For more information, click here.
• On July 1, the Federal Reserve Board fined Silvergate Capital Corporation and Silvergate Bank $43 million for alleged deficiencies in Silvergate’s monitoring of transactions in compliance with anti-money laundering laws. For more information, click here.
• On June 29, the IRS and U.S. Department of Treasury finalized new regulations requiring crypto platforms to report transactions, starting in 2026. These rules, part of the Biden administration’s Infrastructure Investment and Jobs Act, mandate that custodial platforms provide a standard 1099 form for transactions. The goal is to simplify tax payments and crack down on tax evasion. Decentralized platforms that don’t hold assets are exempt. The Blockchain Association praised this exclusion as a victory for the industry. For more information, click here.
• On June 28, the FTC obtained a temporary injunction against Panda Benefit Services, LLC, Clarity Support Services, LLC, Pacific Quest Services, and Prosperity Loan Services. In the complaint, the FTC alleged that Prosperity Benefit Services, its affiliated companies, and operators falsely claimed that consumers who paid for their program were guaranteed to receive loan forgiveness and that the program would significantly reduce their loan payments. The operators also allegedly claimed to take over the servicing of consumers’ student loans and told consumers that they were affiliated with the Department of Education. For more information, click here.
• On June 27, the FHFA announced the inaugural members of its Advisory Committee on Affordable, Equitable, and Sustainable Housing. The committee will provide nonbinding advice to FHFA on how its regulated entities (Fannie Mae, Freddie Mac, and the Federal Home Loan Banks) can best serve as a reliable and responsible source of liquidity and funding for housing finance and community investment, including both single-family and multifamily housing. For more information, click here.

State Activities:

• On July 2, Illinois Governor J.B. Pritzker approved SB2933, which amends the state’s Consumer Fraud and Deceptive Business Practices Act. Among other things, the bill now makes it an unlawful practice under the act for a consumer reporting agency to: (a) make, create, or furnish any consumer report or credit report containing, incorporating, or reflecting any adverse information that the consumer reporting agency knows or should know relates to medical debt incurred by the consumer (or a collection action against the consumer to collect medical debt); and (b) to maintain any information in a consumer file that relates to medical debt incurred by the consumer (or a collection action against the consumer to collect a medical debt). Additionally, the bill defines “medical debt” as debt arising from the receipt of health care services and excludes from the definition debt charged to a credit card or an extension of credit made by a financial institution, unless the credit is to be used by the consumer solely for the purposes of purchasing health care services. For more information, click here.
• On July 2, Governor Pritzker also approved HB5290, a medical debt forgiveness bill. The bill earmarks nearly $10 million in state funding to purchase outstanding medical debt for its residents. One specific goal of the bill is to eliminate $1 million of medical debt in collections for Illinois residents. On this issue, Governor Pritzker commented that “no Illinoisian should face financial ruin after receiving the medical care they need.” He then noted that this bill, along with SB2933 related to limitations on the reporting of medical debt by consumer reporting agencies, are designed to allow Illinois residents an opportunity to “get back on a strong financial path as they heal.” For more information, click here.
• On July 1, New Jersey Attorney General (AG) Matthew J. Platkin and the Division of Consumer Affairs (DCA) announced that the state’s Division of Bureau of Securities (bureau) is taking emergency action against a fraudulent online investment recovery scheme. Specifically, in a summary cease and desist order, the bureau ordered the entities responsible for maintaining a particular website to stop impersonating a registered broker-dealer to scam investors into engaging the entities’ asset recovery services, which fall short of the providing recovery outcomes as promised. DCA warned investors to be wary of individuals and companies that ask for upfront fees to recover lost funds. The AG’s announcement also includes a link to the Financial Investment Regulatory Authority’s website where investors can access more information to help them identify such scans proactively. For more information, click here.
• On June 28, Pennsylvania Governor Josh Shapiro signed SB824. The bill amends the Breach of Personal Information Notification Act to, among other things, reduce the threshold for notifying consumer reporting agencies of security breaches of personal information from 1,000 to 500 affected individuals. For more information, click here.