Our Take: financial services regulatory update – January 16, 2026

January 16, 2026

Change remains a constant in financial services regulation

Read "our take" on the latest developments and what they mean.

Trump proposes 10% cap on credit card interest rates

What happened? On December 9^th, President Trump called for a 10% cap on credit card interest rates, citing credit affordability for consumers.

What’s next? President Trump’s post said he would want a one-year cap on interest rates to start on January 20^th, 2026.

Our Take

Is this the real life, or is it just fantasy?

It is unclear at this time how President Trump’s proposed interest rate cap would be implemented and enforced. Credit card interest rates are currently governed by a combination of federal and state laws intended to provide parity for state- and nationally-chartered banks, upheld over years of appellate court decisions. Under this precedent, an act of Congress would be the only legal path to capping interest rates and might still require similar state restrictions to be wholly effective. While there is current legislation before Congress (the 10 Percent Interest Rate Cap Act) that would cap interest rates at 10%, it has had trouble gaining support from a majority of Senators and would not be even close to meeting the proposed timeline of January 20th, 2026.

If the White House were to require a cap by another mechanism such as an Executive Order or agency action, credit card issuers and industry groups would respond quickly with a series of legal challenges. We expect such challenges would succeed in quickly obtaining an injunction to halt the cap and eventually overturning the cap altogether.

However, political pressure can work to change market participant behavior. Following the President’s social media post, one credit card company announced a 10% promotional interest rate for the next 12 months. It is possible that other companies may follow with cards that provide lower interest rates to attract new customers and avoid naming-and-shaming by the President or other politicians and groups now that credit card interest rates are back in the public spotlight.

On our radar

Vought requests CFPB funding. On January 9^th, Acting CFPB Director Russell Vought requested $145 million in funds from the Fed for the second quarter of 2026. The request was made in accordance with a court order directing the CFPB to continue to following the funding processes set out in the Consumer Financial Protection Act.

Comptroller Jonathan Gould addresses resolution planning. On January 16, Comptroller Gould addressed the Banking Law Committee of the American Bar Association, sharing perspective on the effectiveness of existing resolution planning requirements. In his remarks, he encouraged dialogue on the merits of resolution planning and potential for reform.

SEC Chair Atkins calls for disclosure reform. On January 13^th, SEC Chair Paul Atkins announced that he has instructed the Division of Corporation Finance to conduct a comprehensive review of Regulation S-K, rule that sets disclosure requirements for the non-financial, qualitative aspects of public company filings. He said the goal of revisions to the rule would be to avoid compelling the disclosure of immaterial information and that interested parties should submit comments by April 13^th.

FDIC to meet on guidelines for supervisory appeals. On January 22^nd, the FDIC will hold an open meeting to discuss amendments to its guidelines for appeals of material supervisory determinations. It will also finalize a rule on FDIC signs and advertising requirements.

Senate Agriculture announces digital asset bill markup as Senate banking announces delay. On January 13^th, Senate Agriculture Committee Chair John Boozman (R-AR) announced that the committee will release draft crypto market structure legislation on January 21^st and hold a committee markup on January 27^th. Separately, on January 14^th, Senate Banking Committee Chair Tim Scott (R-SC) delayed a markup of its digital asset market structure bill that was planned for January 15^th, calling it a “brief pause.”

California DFPI issues second invitation for comments on proposed consumer-reporting registration and reporting rules. On January 12th, the California Department of Financial Protection and Innovation released a second invitation for comments as it considers expanding registration and reporting requirements under the California Consumer Financial Protectional Law to additional “consumer-reporting” providers. The Department is seeking input on potential definitions, exemptions, supervisory concerns, recordkeeping and reporting requirements, and economic impacts for entities that collect, analyze, maintain, or provide consumer report or account information. Comments are due February 26th.

CFPB and DOJ withdraw 2023 joint statement on consideration of immigration status under ECOA. On January 12^th, the CFPB and DOJ withdrew their October 2023 joint statement on creditor treatment of immigration and citizenship status, stating that the document may have created a misimpression that ECOA or Regulation B limit creditors’ ability to consider immigration status when assessing underwriting and legal risks.

FinCEN issues Geographic Targeting Order requiring enhanced reporting on certain funds transfers in Minnesota. On January 13th, FinCEN issued a Geographic Targeting Order (GT) requiring firms operating in Hennepin and Ramsey Counties to report specified funds transfers of $3,000 or more when the originator is located in the covered area and the beneficiary or receiving institution is outside the United States. The GTO, effective February 12^th through August 10^th, 2026, aims to support investigations into laundering of proceeds from government benefits fraud.