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Financial Services News Roundup
August 15, 2025 – August 29, 2025

Treasury Department Seeks Comment on Methods to Detect Illicit Activity Involving Digital Assets

Welcome to Goodwin’s Financial Services News Roundup. Our newsletter highlights important legal, regulatory, and business developments related to financial services and banking.
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0Treasury Department Seeks Comment on Methods to Detect Illicit Activity Involving Digital Assets

On August 18, the US Department of the Treasury issued a request for comment on the “use of innovative or novel methods, techniques, or strategies to detect and mitigate illicit finance risks,” such as money laundering, involving digital assets. The Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act), signed into law on July 18, requires the Treasury Department to seek comment specifically on application program interfaces (APIs), artificial intelligence (AI), digital identity verification, and the use of blockchain technology and monitoring. Following the receipt of public comments, the Treasury Department will conduct research on the methods, techniques, and strategies identified in the comments and provide a report summarizing the research to the Senate Banking, Housing, and Urban Affairs Committee and House Financial Services Committee. Comments must be received on or before October 17.

0Federal Reserve Sunsets Novel Activities Supervision Program

On August 15, the Board of Governors of the Federal Reserve System (Federal Reserve) announced that it will sunset its Novel Activities Supervision Program (Program), established in a 2023 supervisory letter, and return to monitoring banks’ novel activities through the normal supervisory process. The Program was meant to supervise banking activities related to crypto-assets, distributed ledger technology, and fintech partnerships as they grew in prominence. Now, having a better understanding of such activities, related risks, and bank risk management practices, the Federal Reserve has rescinded its 2023 supervisory letter creating the Program.

0FDIC Proposes Simplified Rules for Digital Signage

On August 19, the Federal Deposit Insurance Corporation (FDIC) approved a proposed rule to amend regulations related to the display of the FDIC official digital sign and non-deposit signage. The changes aim to simplify how banks display FDIC signage on digital platforms like websites, mobile apps, ATMs, and similar devices. This proposal revises certain aspects of a 2023 final rule that introduced the FDIC official digital sign and required signage for digital banking channels. The new proposal emphasizes placing signage on screens and pages where it would be most relevant to consumers. Comments must be received no later than October 20.

0CFPB Seeks Comment on Personal Financial Data Rights Rule

On August 22, the Consumer Financial Protection Bureau (CFPB) published an advance notice of proposed rulemaking in the Federal Register to reconsider its Personal Financial Data Rights Rule under Section 1033 of the Dodd-Frank Act. The CFPB is now seeking comment on four central issues: (1) whether the term “representative” under Section 1033 should be limited to fiduciaries or extended to non-fiduciary third parties; (2) whether a covered person may be allowed to recover costs in response to a customer-driven request; (3) whether existing data security requirements under the Gramm-Leach-Bliley Act are sufficient; and (4) whether the rule provides adequate privacy protections regarding the licensing, sale, and third-party use of sensitive consumer financial data. Comments must be received on or before October 21.

0CFPB Proposes Standard Definition for CFPA Designation Proceedings

On August 26, the CFPB issued a proposed rule to formally define “risks to consumers with regard to the offering or provision of consumer financial products or services” as consisting of conduct that (1) presents a high likelihood of significant harm to consumers, and (2) is directly connected to the offering or provision of a consumer financial product or service, where “the offering or provision of consumer financial products or services” would require a direct connection to a statutorily defined consumer financial product or service. The rule’s stated purpose is to ensure that the CFPB acts within the bounds of its statutory authority in regard to asserting supervisory authority over nonbank covered persons. Comments must be received on or before September 25.

0Bank Accounting Advisory Series Updated

On August 15, the Office of the Comptroller of the Currency (OCC) released the 2025 edition of the Bank Accounting Advisory Series (BAAS). The BAAS provides the OCC Office of the Chief Accountant’s interpretations of generally accepted accounting principles and regulatory guidance for consistent application of accounting standards and regulatory reporting requirements among national banks. The publication addresses staff responses to frequently asked questions from banking institutions. This edition contains no new substantive guidance but incorporates minor editorial revisions to enhance clarity.

Check Out Goodwin’s Latest Industry Insights

New Fintech Flash: Stablecoins: An Alternative Payment Method for Merchants?
A new wave of payment innovation is upon us, and it is fueled, at least in part, by digital-first consumers’ and merchants’ concerns about the rising costs of traditional payment methods. Stablecoins, which are digital assets capable of being redeemed for a fixed amount of monetary value, stand out as one such innovative payment method that reduces friction by allowing lower costs and faster settlement for merchants, all without the need to rely on traditional payment card networks. There’s a rumor that several large merchants are exploring issuing their own stablecoins as an alternative payment method to reduce acceptance costs. To read more, click here.

New Insight: The 15-Minute Founder's Guide: Pay-to-Play Transactions
If your startup continues to follow the proverbial “hockey stick” of uninterrupted, exponential growth that you presented in your seed round pitch deck, you might always have easy access to capital and never encounter a pay-to-play transaction. However, the vast majority of startups must survive periods when access to capital is more limited, even if the company’s value proposition remains strong. So, what happens when a promising startup with an existential need for capital cannot attract sufficient investment on traditional terms to survive long enough to see those prospects come to life? To read more, click here.

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The Retail Private Markets Revolution: A Guide for Private Fund Managers
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New Directions: The Trump Administration
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This informational piece, which may be considered advertising under the ethical rules of certain jurisdictions, is provided on the understanding that it does not constitute the rendering of legal advice or other professional advice by Goodwin or its lawyers. Prior results do not guarantee similar outcomes.

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