Government Relations Insights: September 4, 2025

TOP LINES

The Federal Reserve Board (the Fed) will hold a conference on payments innovation on October 21, featuring discussions on stablecoin use cases, tokenization, AI in payments, and the convergence of traditional and decentralized finance. Fed Governor Christopher Waller said the event will examine opportunities and challenges in new technologies to improve safety and efficiency in payments. The conference will be livestreamed at federalreserve.gov.

The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) issued a joint statement on spot crypto trading clarifying that registered exchanges are not barred from facilitating trading of certain spot commodity products. SEC Chair Paul Atkins said the move supports freedom to choose where participants trade spot crypto assets, while CFTC Acting Chair Caroline Pham emphasized the agencies’ joint effort to empower American innovation under President Trump’s directive to make the U.S. the crypto capital of the world. 

What We’re Reading:

‍From American Banker: Fintechs move for open banking rule to go forward 

WEEKLY UPDATE

The Trump Administration released the Spring 2025 Unified Agenda of Regulatory and Deregulatory Actions, outlining near- and long-term plans across federal agencies. Published by the Office of Information and Regulatory Affairs in coordination with the Regulatory Information Service Center, the Agenda provides public notice of upcoming regulatory priorities and transparency into the Executive Branch’s deregulatory efforts. 

First Lady Melania Trump will host the second meeting of the White House Task Force on Artificial Intelligence (AI) Education, bringing together Task Force members and private sector leaders to discuss advancing AI education for American children. The meeting follows President Trump’s April 2025 executive order on AI education and builds on more than 135 private sector pledges to support AI learning nationwide. Mrs. Trump, championed child protection online through her BE BEST initiative and the TAKE IT DOWN Act, said AI must be empowering, but with watchful guidance, as America prepares its children for a future shaped by the technology.

Commissioner Kristin Johnson delivered her farewell address at the Brookings Institute, marking the end of her tenure at the CFTC. She reflected on lessons from financial crises from Lehman to FTX and warned that governance and risk management failures can devastate markets. Commissioner Johnson called for clearer rules around prediction markets, stronger oversight of digital assets, and closer coordination on emerging risks like AI and cyber threats, urging regulators to measure twice, cut once as they shape the future of financial oversight.

The Federal Trade Commission (FTC) announced a $10 million settlement with Disney, alleging the company mislabeled child-directed videos on YouTube as “Not Made for Kids,” enabling the collection of personal data from children under 13 for targeted advertising in violation of the COPPA Rule. The proposed order requires Disney to establish a video review program, comply with COPPA’s parental consent requirements, and anticipates the adoption of age assurance technologies on YouTube. The Department of Justice filed the complaint and settlement in federal court in California.

Sens. Elizabeth Warren (D-MA), Richard Blumenthal (D-CT), and Bernie Sanders (I-VT) sent letters to twenty-five banks seeking details on overdraft practices, citing harm to low- and middle-income consumers. The senators criticized President Trump and congressional Republicans for repealing a Consumer Financial Protection Bureau (CFPB) rule that capped overdraft fees at $5, saying the rollback costs consumers up to $3.5 billion annually and fuels account closures that contribute to debanking.

House Small Business Committee Chairman Roger Williams (R-TX) introduced legislation to extend the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs for one year beyond their Sept. 30, 2025 expiration. Williams said the stopgap measure will preserve continuity for small businesses while Congress works toward long-term reauthorization. The programs, launched in 1982 and 1992 respectively, have long supported federally funded R&D and partnerships between small businesses and research institutions.

ICYMI

The Small Business Administration (SBA) instructed its network of 5,000+ lenders to end politicized or unlawful debanking practices under Executive Order 14331, “Guaranteeing Fair Banking for All Americans.” SBA Administrator Kelly Loeffler said banks that deny services based on political, religious, or ideological beliefs must reinstate qualified customers or face penalties, including loss of good standing. Lenders must review past practices, notify affected clients, and submit compliance reports to SBA by January 5, 2026.