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Monthly Banking Regulatory Review – September 2025

Financial Services Regulatory Center • October 15, 2025
See our in-depth updates on recent bank regulation activities impacting financial institutions.

Forvis Mazars has summarized this month’s activity in the U.S. banking regulatory landscape to help you keep up to speed on this quickly evolving regulatory environment.

The regulatory winds continue to shift with new guidance and legislation being issued and regulators outlining evolving supervisory and regulatory priorities. On Capitol Hill, the Homebuyers Privacy Protection Act (HPPA) was signed into law to firm up restrictions on credit reporting agencies and how consumer report data is shared. Joint efforts of the market regulators show harmonization across the agencies is en route. In addition, the Federal Open Market Committee (FOMC) cut interest rates for the first time in nine months amid pressures in the labor market. Developments of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) and digital asset framework continue to take shape. The banking agencies provided clarity on their upcoming supervisory and regulatory priorities, indicating that more changes are on the horizon. Read about these updates and more in the following summary of activities in the U.S. banking regulatory ecosystem.

Navigating the Evolving U.S. Banking Regulatory Landscape: Key Highlights From September 2025 

In September 2025, the U.S. banking regulatory environment saw a few developments spanning legislative, supervisory, and international fronts. Here are the quick hits:

  1. On Capitol Hill
    • HPPA was signed into law, restricting credit reporting agencies from sharing consumer report data during mortgage applications.
  2. Joint Agency Statements
    • Market regulators extended the compliance date for the use of Form PF.
    • The SEC and Commodity Futures Trading Commission (CFTC) issued a joint statement outlining plans to create alignment across the agencies.
    • SEC and CFTC clarify position on spot crypto products.
  3. Federal Reserve Updates
    • The FOMC lowered the federal funds rate amid labor market concerns.
    • The latest Beige Book issue was released.
  4. U.S. Department of the Treasury Developments
    • An advance notice of proposed rulemaking was issued seeking public comment on questions related to the GENIUS Act implementation.
  5. OCC Initiatives
    • The results of national banks and federal savings associations were released, which examined the Community Reinvestment Act (CRA) for compliance.
    • The supervision framework was restructured into three distinct lines of business.
    • Its chartering function was elevated and renamed, signaling support for de novo activity.
    • Bulletins were issued to address politicized debanking and reaffirmed financial institution obligations under the Right to Financial Privacy Act (RFPA).
    • Reported on Q2 2025 mortgage portfolio performance.
  6. FDIC Developments
    • The Enforcement Actions Manual was updated to allow greater flexibility in terminating cease-and-desist and consent orders.
    • The results of its latest annual survey of branch office deposits were released.
    • The list of banks examined for CRA Compliance was issued.
  7. CFPB Agenda
    • CFPB published its Spring 2025 Semiannual Regulatory Agenda.
  8. Financial Crimes Enforcement Network (FinCEN) News
    • Postponing the effective date of the Investment Adviser Rule was proposed.
  9. FSOC Efforts
    • The Financial Stability Oversight Council (FSOC) met to discuss supervisory and regulation priorities and market developments.
  10. SEC & CFTC Updates
    • The CFTC proposed amendments to ease business conduct and documentation requirements for swap dealers and major swap participants.
    • The CFTC proposed an extension of no-action relief for package transactions combining made available to trade (MAT) swaps and futures contracts.
    • The SEC issued a concept release seeking public input on ways to revitalize the residential mortgage-backed securities market.
    • The SEC launched a task force targeting foreign-based fraud schemes and gatekeepers facilitating risky market access.
    • The CFTC withdrew proposed rules covering operational resilience frameworks, Voluntary Carbon Credit Derivative Contracts Guidance, Guidance on DCO Recovery Plans and Wind-Down Plans, and Parts 37 and 38.
    • CFTC launched an initiative targeted at integrating tokenized collateral and stablecoins into the derivatives markets.
  11. FASB Updates
    • Issued an Accounting Standards Update (ASU) to revise internal-use software cost guidance.
    • Released its tentative decisions related to accounting for debt exchanges.

On Capitol Hill

Homebuyers Privacy Protection Act

On September 5, 2025, President Trump signed HPPA into law, which amends the Fair Credit Reporting Act (FCRA) and places stricter limits on when credit reporting agencies may share consumer reports with creditors during the residential mortgage process. HPPA aims to combat “trigger leads,” which occur when a customer applies for a mortgage or other credit, and a credit reporting agency subsequently sells the customer’s information to financial institutions or other lenders for marketing purposes.

Under the new rule, credit reporting agencies may only provide consumer reports to other creditors in connection with a residential mortgage loan in the following circumstances:

  • The transaction involves a firm offer of credit or insurance, and
  • The other creditor:
    • Has submitted documentation to the agency certifying that they have authorization of the customer to obtain the consumer report; or
    • Has originated a current residential mortgage loan for the customer; or
    • Is the servicer of the customer’s current residential mortgage loan; or
    • Is an insured depository institution or credit union and holds a current account for the consumer.

For banks and lenders, especially those that have relied on trigger leads to generate business, HPPA will require a careful approach to business development and marketing techniques. Institutions should also consider whether data access protocols and customer consent disclosures should be updated.

Joint Agency Statements

U.S. Market Regulators Extend Form PF Compliance Date

On September 17, 2025, the SEC and CFTC voted to extend the date investment advisers must comply with amendments to Form PF, a confidential regulatory filing required for certain private fund investment advisers. The original compliance date was extended from March 12, 2025 to October 1, 2026. The agencies stated that the additional time will provide them with an opportunity to complete a substantive review of Form PF and to take any further necessary actions.

Harmonization Between the U.S. Market Regulators on the Horizon

On September 5, 2025, SEC Chairman Paul Atkins and Acting CFTC Chairman Caroline Pham issued a joint statement committing to increased coordination between the two U.S. market regulators. The collaborative effort to develop frameworks for innovative products serves as the catalyst for this joint statement. As a result, the agencies are considering ways to harmonize product and venue definitions, streamline reporting and data standards, align capital and margin frameworks, and stand-up coordinated innovation exemptions using each agency’s existing authority, where appropriate.

The joint statement also details priorities for this collective, including:

  • 24/7 Markets: Collaborate on potentially expanding trading hours, where appropriate, to provide an opportunity for on-chain finance to scale.
  • Event Contracts: Examine opportunities to collaborate on where event contracts may be made available to U.S. market participants, regardless of where jurisdictional lines may fall.
  • Perpetual Contracts: Consider concurrent steps to onshore perpetual contracts that meet investor and customer-protection standards, potentially allowing these products to trade across SEC- and CFTC-regulated platforms.
  • Portfolio Margining: Take action to allow clearinghouses to offer portfolio-based margin across their respective product lines that retains resiliency without triggering duplicative registration or conflicting compliance burdens.
  • Innovation Exemptions & Decentralized Finance (DeFi): Consider “innovation exemptions” to create safe harbors or exemptions that allow market participants to engage in peer-to-peer trading of spot, leveraged, margined, or other transactions in spot crypto assets, including derivatives such as perpetual contracts, over DeFi protocols.

SEC & CFTC Issue Joint Statement on Trading Spot Crypto Asset Products

On September 2, 2025, the SEC and CFTC issued a joint statement regarding the trading of certain spot crypto asset products. In the statement, agency staff clarified that SEC‑registered national securities exchanges and CFTC‑registered designated contract markets or foreign boards of trade may facilitate leveraged, margined, or financed spot retail crypto commodity transactions without legal prohibition, provided they comply with applicable regulatory requirements. This effectively clears the way for U.S. exchanges to introduce spot crypto products. The action aligns with the efforts of the President’s Working Group on Digital Asset Markets to strengthen innovation in digital financial technology and establish fit-for-purpose regulations for products and trading platforms. While the statement does not introduce a formal change in law or regulations, it provides a pathway through interpretive clarity on the permissibility of spot crypto trading by registered exchanges.

U.S. Department of the Treasury

Treasury Makes Move on the GENIUS Act

On September 18, 2025, the U.S. Department of the Treasury (Treasury) issued an advance notice of proposed rulemaking (ANPRM), an early-stage rulemaking step that will require Treasury to issue a subsequent proposal to seek additional public input before any regulations may be finalized, seeking public comment on questions related to Treasury’s implementation of the GENIUS Act. Specifically, the ANPRM solicits public comments on topics and questions across the following categories:

  • Stablecoin Issuers & Service Providers
  • Illicit Finance
  • Foreign Payment Stablecoin Regimes
  • Taxation
  • Insurance
  • Economic Data

While the ANPRM does not implement new requirements under the GENIUS Act, it reflects Treasury’s intent to pursue a detailed rulemaking while seeking broad stakeholder input as the agency shapes the forthcoming regulatory framework for payment stablecoins. The public has until October 20, 2025 to submit feedback.

Federal Reserve Board

An Overview of the Federal Open Market Committee Meeting

On September 17, 2025, the FOMC released a statement announcing its plan to lower the federal funds rate by 0.25% to a target range between 4% to 4.25%. The statement points to a faltering labor market and an uptick in unemployment as motivating factors for the announced rate cut. The statement also noted moderated growth of economic activity, elevated inflation, uncertainty about the economic outlook, and that the FOMC will continue to focus on its supporting maximum employment and returning inflation to its 2% objective.

A Summary of the Latest Beige Book 

On September 3, 2025, the Federal Reserve issued the latest Beige Book, a publication detailing the current economic conditions across the 12 Federal Reserve Districts. In this release, the districts experienced modest to flat economic activity for the period between July and mid-August, with consumer spending pressured by rising costs and wage stagnation. The labor market was largely unchanged as uncertainty and weakened demand made firms hesitant to hire, resulting in some attrition and layoffs and reduced availability of immigrant labor. Price growth remained generally moderate as tariff-related input increases were partially passed on to customers. However, most districts expect price increases to continue in the months ahead. The next Beige Book is expected to be released in October.

Office of the Comptroller of the Currency

OCC Reports on Mortgage Performance for the Second Quarter of 2025

On September 24, 2025, the Office of the Comptroller of the Currency (OCC) released its Mortgage Metrics Report, a quarterly report detailing data on seven national banks with large mortgage-servicing portfolios, representing $2.1 trillion, approximately 20%, of all outstanding residential mortgage debt in the United States. The report aims to provide a broader understanding of mortgage portfolio performance in the federal banking system and support supervisory efforts.

The report highlights bright spots across mortgage portfolios in the second quarter of 2025 as performance remained satisfactory with 97.5% of mortgages current and performing, a slight improvement from 97.3% when compared to year-over-year metrics reported for the second quarter of 2024. Furthermore, mortgages 60 or more days past due, as well as mortgages held by bankrupt borrowers whose payments are 30 days or more past due, declined year-over-year. During the quarter, servicers completed 8,419 permanent modifications, primarily driven by combination modifications that include multiple actions such as extended loan terms and reduced interest rates. Many combination modifications also included the capitalization of interest and fees.

OCC Announces Reorganization 

On September 18, 2025, the OCC announced a new organizational framework for its bank supervision. Effective October 1, 2025, the agency will replace the Bank Supervision and Examination group with the following distinct lines of business:

Large & Global Financial Institutions: Banks with assets of over $500 billion as well as banks with a foreign parent.

Regional & Midsize Financial Institutions: Banks between $30 and $500 billion in assets.

Community Banks: Banks with up to $30 billion in assets.

Each line of business will be led by a Senior Deputy Comptroller who will report to the Comptroller of the Currency. The move aligns with the Comptroller of the Currency’s plans to right-size and tailor supervision to bank risk profiles.

Updates to the organization of the Office of the Chief National Bank Examiner were also announced. The office is tasked with supporting the Bank Supervision and Examination through facilitating and managing the identification of supervisory risks, banking and economic conditions, and industry trends. The office will now be comprised of the following streamlined divisions:

  • Deputy Comptroller for Supervision Systems and Analytical Support
  • Deputy Comptroller for Credit Risk
  • Deputy Comptroller for Compliance and Operational Risk
  • Chief Economist and Deputy Comptroller for Economics
  • Chief Accountant and Deputy Comptroller for Capital, Market Risk and Asset Management

Each division will report to the Chief National Bank Examiner.

OCC Elevates Chartering Function 

On September 9, 2025, the OCC elevated and renamed its chartering and licensing function, and named Stephen Lybarger to lead the group as Senior Deputy Comptroller for Chartering, Organization and Structure. This move highlights the importance the agency is placing on de novo bank formation and mergers and acquisitions, underscoring its role to license payment stablecoin issuers, a responsibility it gained under the GENIUS Act. With this change, the agency is poised to streamline chartering proposals and growth initiatives, provided they demonstrate sound risk management, strategic viability, and structural comprehensiveness.

OCC Takes Action to Depoliticize the Federal Banking System 

On September 8, 2025, the OCC issued two bulletins announcing actions to eliminate politicized or unlawful debanking in the federal banking system, consistent with Executive Order (EO) 14331, Guaranteeing Fair Banking for All Americans.

  • OCC Bulletin 2025-22, Licensing and Community Reinvestment Act: Consideration of Politicized or Unlawful Debanking, clarifies how the OCC evaluates politicized or unlawful debanking in both review of licensing filings and CRA performance. As part of its licensing review, the OCC plans to consider a bank’s record of debanking as well as any policies and procedures that the bank has in place that are designed to avoid engaging in politicized or unlawful debanking consistent with the applicable evaluative factors. The agency also may consider whether a bank has engaged in politicized or unlawful debanking as a factor in determining its CRA rating.
  • OCC Bulletin 2025-23, Protecting Customer Financial Records, reaffirms banks’ legal obligations to protect customer financial records under the RFPA, emphasizing that records may only be disclosed to government authorities with proper RFPA certifications or legal processes. The OCC also warns against the misuse of voluntary Suspicious Activity Reports (SARs) as a pretext to improperly disclose customers’ financial information or evade the RFPA. Banks are urged to review and enhance their RFPA and SAR procedures to help ensure compliance and protect customer privacy.

Separately, the OCC updated its online customer complaint website to assist consumer reporting and agency identification of any unlawful debanking by its regulated institutions. This insight is expected to be leveraged as the agency reviews its consumer complaint data and data from outside sources to refine examination efforts.

The OCC Issues List of Banks Examined for CRA Compliance 

On September 2, 2025, the OCC released its list of results of the national banks and federal savings associations evaluated for CRA compliance. In total, 11 institutions were assessed during the period. For a complete list of banks examined for CRA compliance, visit the OCC website.

Federal Deposit Insurance Corporation

FDIC Releases Its Latest Summary of Deposits

On September 19, 2025, the FDIC released the results of its annual survey of branch office deposits for all FDIC-insured institutions as of June 30, 2025, known as the Summary of Deposits (SOD). The SOD provides data for more than 76,000 domestic offices operated by more than 4,400 FDIC-insured institutions, enabling detailed market share and geographic analyses. 

This year’s SOD data shows continued concentrations of deposits in major metropolitan markets and among larger institutions, with national and regional banks accounting for growing shares of branch deposits.

Enforcement Actions Manual Updated to Clarify Minimum Standards for Terminating Cease-and-Desist & Consent Orders

On September 8, 2025, the FDIC issued Financial Institution Letter 42-2025, updating its Enforcement Actions Manual regarding Minimum Standards for Termination of Cease-and-Desist and Consent Orders, indicating the agency’s plan to update its Formal and Informal Enforcement Actions Manual. Specifically, the FDIC updated the “Cease-and-Desist Actions” chapter of the manual that outlines the agency’s minimum standards for terminating cease-and-desist and consent orders issued under Section 8(b) of the Federal Deposit Insurance Act. The procedures for terminating consent orders were previously revised in 2022 and generally precluded the termination of an order unless an insured depository institution (IDI) met full compliance with all provisions of an order.

Under the new provisions, orders may be considered for termination if any of the following conditions are met:

  • The IDI has achieved at least substantial compliance with the order.
  • The order is no longer applicable to the IDI’s current circumstances, including situations in which the IDI is closed, self-liquidated, or merges.
  • Deterioration leads to the issuance of a new or revised formal action.

The FDIC Issues List of Banks Examined for CRA Compliance

On September 5, 2025, the FDIC released its periodic statement presenting the results of the FDIC-regulated banks recently evaluated for CRA compliance. In total, 59 institutions were assessed during the period. For a complete list of banks examined for CRA compliance, visit the FDIC website.

Consumer Financial Protection Bureau

The CFPB Publishes Its Spring 2025 Semiannual Regulatory Agenda

On September 22, 2025, the CFPB published its Spring 2025 Semiannual Regulatory Agenda outlining its active and completed rulemakings. The CFPB’s agenda includes nine items at the Pre-rule Stage, 10 entries at the Proposed Rule Stage, and five at the Final Rule Stage. In addition, the CFPB added one item to its long-term agenda related to refining its ability-to-repay rule and defining certain “qualified mortgages.” The CFPB clarified that the timing of these actions is not binding and is subject to change.

Financial Crimes Enforcement Network

Notice of Proposed Rulemaking to Revise the Effective Date of the “IA AML Rule”

On September 19, 2025, FinCEN issued a Notice of Proposed Rulemaking (NPR) to amend the effective date of the Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) Program and SAR Filing Requirements for Registered Investment Advisers and Exempt Reporting Advisers (IA AML Rule). The IA AML Rule, initially published in September 2024, defined certain investment advisers as “financial institutions” under the Bank Secrecy Act (BSA) and required them to implement AML/CFT programs and conform to SAR reporting requirements. The initial rule was scheduled to be effective as of January 1, 2026; however, FinCEN is proposing to delay the effective date by two years to January 1, 2028. FinCEN is expected to consider refinements to the substance of the rule during this delayed implementation. The public comment period ends on October 22, 2025.

Financial Stability Oversight Council

A Summary of the September FSOC Meeting

On September 10, 2025, the Financial Stability Oversight Council (FSOC) met to discuss and analyze emerging market developments and financial regulatory issues. During this session, discussions centered on why economic growth and security are integral to financial stability and the FSOC’s priorities for the coming year. Notably, the FSOC plans to revisit its guidance related to nonbank financial company determinations under §113 of the Dodd-Frank Act and the council’s analytic framework for financial stability risks. Also, as part of the agenda, the FSOC received updates from the heads of the federal banking regulators describing steps their respective agencies are taking to enhance the efficiency of their regulatory and supervisory frameworks. Highlights of this discussion are noted below:

  • Board of Governors of the Federal Reserve System 
    • Supervisory Priorities: The agency will recalibrate its supervisory activities to focus on core, material financial risks that will allow the agency to devote resources to evaluating risk factors that most often lead to bank failures and systemic strain. The agency also intends to reduce horizontal reviews, as the inappropriate application of their findings has become problematic. Further, the tailoring of regulation and supervision has come back into focus as the agency is particularly conscious of right-sizing supervision and regulation.
    • Regulatory Pragmatism: The Fed has worked across agencies, rolling out several proposals to address challenges in the banking sector, including:
      • A proposal to revise the supplementary leverage ratio (SLR) to allow banks to support treasury market functioning and intermediation;
      • A request for information on payments fraud, specifically check fraud;
      • Proposed revisions to the Large Financial Institution ratings framework to reflect considerations that tie to a bank’s financial condition; and
      • Modernizing the CAMELS ratings through the Federal Financial Institutions Examination Council.
      • Stakeholder Engagement: The agency will work with a wider range of stakeholders through new engagements and conferences.
      • Innovation Pathways: The agency is rescinding several policy statements and guidance documents related to digital assets that were viewed as overly restrictive. Moving forward, the agency will embrace innovation in the banking system, beginning with working with interagency contacts to implement GENIUS Act provisions.
      • Capital Framework Review: The agency intends to undertake comprehensive reviews of the capital framework to make sure it is effective and appropriately calibrated to support the economy. The agency plans to continue its work on the enhanced SLR, GSIB surcharge, and Basel III proposal. Looking ahead, the agency is expected to issue proposals to improve stress test transparency, including seeking public comment on the models and scenarios used for the test.
      • OCC
        • The Comptroller indicated that the agency’s focus would center on resetting the risk tolerance for the federal banking system and banking system as a whole, as the OCC plans to review the entire post-2008 chartering, regulation, and supervision frameworks. The following core efforts were noted:
          • Chartering: The agency recently elevated the stature of the chartering and licensing function within the agency to reflect its strategic importance as gatekeeper of the federal banking system.
          • Regulation: Measures to right-size and simplify procedures, including but not limited to:
            • Reforming capital and liquidity to simplify and clarify requirements;
            • Addressing the regulatory framework, including reassessing the need for recovery planning and heightened standards;
            • Tailoring regulations beginning with community banks;
            • Updating the community bank leverage ratio framework and raising applicable regulatory asset thresholds where allowed;
            • Eliminating the use of reputation risk and defining key supervisory concepts, like unsafe and unsound practices; and
            • Establishing processes to implement the GENIUS Act.
          • Supervision: Actions to tailor bank supervision in alignment with risk-focused approaches, including but not limited to:
            • Reforms for community banks targeting certain areas like fair lending, capital, liquidity, the CRA, and third-party risk management, with adjustments to approaches reflective of the low risks posed by community banking activities;
            • Reviewing supervisory strategies across banks of all sizes with the goal of eliminating ongoing or targeted examination activities that are not related to material financial risks; and
            • Reducing redundant supervision with the other federal banking agencies.
      • FDIC
        • The FDIC Acting Chairman noted the agency is working to reform supervision to move away from process-driven practices and adopt procedures that focus more on core financial risks. While not an exhaustive list, a summary of supervision- and regulatory-related efforts includes, among other items:
        • Supervisory
          • Developing interagency rulemaking to define certain key terms to improve guardrails and consistency across supervisory process;
          • Reforming the CAMELS rating system;
          • Issuing a proposal to revamp the FDIC’s supervisory appeals process;
          • Modifying the continuous examination program, raising the threshold from $10 billion to $30 billion in assets;
          • Reducing the frequency of consumer compliance examinations to once every five years, with a midcycle review, for most institutions with less than $3 billion in assets;
          • Streamlining certain aspects of the Bank Secrecy Act and information technology examinations;
          • Modifying enforcement policies to allow flexibility in terminating consent orders;
          • Ending the use of “disparate impact” in fair lending examinations; and
          • Re-evaluating the consumer compliance complex bank program. 
        • Regulatory 
          • Modifying capital rules, including modernization of risk-based capital standards;
          • Establishing a framework for digital assets by issuing clarification on permissible activities and implementing the GENIUS Act and related digital asset framework recommendations;
          • Shifting the focus of the bank resolution process to large banks and reevaluating the current resolution and receivership program;
          • Developing rulemakings and processes to end “debanking;”
          • Issuing a proposal to raise and index 37 regulatory asset thresholds and evaluating others;
          • Working on improvements to the merger review process and analytical framework;
          • Exploring ideas to encourage de novo bank activity;
          • Enhancing the speed and certainty of the approval process for new branch openings; and
          • Rescinding the CRA rule.

Securities & Exchange Commission

SEC Looks to Revive the RMBS Market 

On September 26, 2025, the SEC published a concept release seeking public comment on ways to improve rules governing residential mortgage-backed securities (RMBS) and certain aspects of asset-backed securities (ABS). The agency is reviewing ways it can revive this market, noting there have been no public RMBS offerings since 2013 despite their importance in broadening issuer and investor access and potential for lowering mortgage costs.

Specifically, the agency is soliciting public input on a range of topics, including but not limited to:

  • Reducing, clarifying, and reorganizing RMBS data fields in Schedule AL to better align with market participant capabilities;
  • Permitting alternative formats or phased reporting for certain fields;
  • Addressing how to disclose or limit sensitive consumer data while preserving investor due diligence needs; and
  • Revising the Regulation AB definition of “asset-backed security” and related definitions to broaden access to ABS registration.
    • The release is awaiting formal publication in the Federal Register; however, the public comment period will remain open for 60 days following publication.

SEC Forms Cross-Border Task Force to Combat Fraud 

On September 5, 2025, the SEC announced the formation of the Cross-Border Task Force to strengthen efforts against international fraud schemes harming investors. The task force will initially target foreign-based companies for potential securities law violations, e.g., “pump-and-dump" and "ramp-and-dump" schemes, and scrutinize gatekeepers, such as auditors and underwriters, that facilitate access for these companies across the U.S. capital markets. It will also examine companies from jurisdictions with unique risks, like China, for potential securities laws violations.

Commodity Futures Trading Commission

CFTC Issues Proposal to Revise Business Conduct & Swap Documentation Requirements 

On September 24, 2025, the CFTC proposed amendments to revise business conduct and swap documentation requirements for swap dealers and major swap participants. The proposed amendments are intended to address concerns raised by entities regarding the friction between the external business conduct standards and swap trading relationship documentation rules.

Under the proposal, the external business conduct standards and swap trading relationship documentation rule would be amended to include targeted exceptions for

  • Swaps intended to be cleared alongside execution or
  • Executed under qualified prime broker arrangements that meet certain qualifying conditions.

In addition, the agency is proposing to eliminate the pre-trade midmarket mark disclosure requirement, a requirement where swap dealers must disclose a calculated midmarket mark to counterparties before a swap trade is executed, as well as the scenario analysis requirement under 17 CFR 23.431. If adopted, the changes would codify several no-action positions and closer align the CFTC rules with SEC standards.

The CFTC is seeking public comment by October 24, 2025.

CFTC Launches Tokenized Collateral & Stablecoin Initiative 

On September 23, 2025, the CFTC kicked off a new initiative to integrate tokenized collateral, including stablecoins, into derivative markets. The move follows targeted action by the agency to modernize collateral management, unlock liquidity, and continue the embrace of digital assets innovation as part of widespread efforts across the U.S. financial services industry. The CFTC is soliciting public comment on the use of tokenized collateral in derivative markets with written input requested by October 20, 2025.

CFTC Extends No-Action Position for Certain Package Transactions From the Trade Execution Requirement for Swaps

On September 22, 2025, the CFTC’s Division of Market Oversight (DMO) extended its no-action position regarding trade execution and related requirements for swaps executed as part of package transactions for MAT swap and futures contracts. Specifically, the DMO’s relief addressed:

  • The Commodity Exchange Act (CEA) 2(h)(8) swap component trade execution requirement.
  • CFTC Rules 37.3(a)(2) (requirements and procedures for registration) and 37.9 (methods of execution for required and permitted transactions), and CEA 5(d)(9), which establish execution method and order book requirements for swap execution facilities and designated contract markets.

This extension enables the DMO to continue considerations of more permanent solutions for swap components of these types of package transactions.

CFTC Withdraws Parts 37 & 38 Proposed Rule 

On September 15, 2025, the CFTC announced it is withdrawing proposed rulemaking 89 FR 19646, “Requirements for Designated Contract Markets and Swap Execution Facilities Regarding Governance and the Mitigation of Conflicts of Interest Impacting Market Regulation Functions.” In March 2024, the agency proposed rulemaking to establish governance and fitness requirements related to market regulation functions and conflict of interest standards for Designated Contract Markets and Swap Execution Facilities. The CFTC is withdrawing the proposed rulemaking to reconsider requirements given recent changes within the industry and evolving market structures.

CFTC Withdraws Guidance on DCO Recovery Plans & Wind-Down Plans

On September 11, 2025, the CFTC’s Division of Clearing and Risk issued a withdrawal notice of CFTC Letter Number 16-61, “Recovery Plans and Wind-down Plans Maintained by Derivatives Clearing Organizations and Tools for the Recovery and Orderly Wind-down of Derivatives Clearing Organizations.” The action aims to remove duplicative guidance given existing requirements to maintain viable recovery and wind-down plans for systemically important derivatives clearing organizations and derivatives clearing organizations subject to Subpart C of Part 39 of the CFTC’s regulations.

CFTC Withdraws Voluntary Carbon Credit Derivative Contracts Guidance

On September 10, 2025, the CFTC announced a withdrawal notice of 89 FR 83378, also known as “Commission Guidance Regarding the Listing of Voluntary Carbon Credit (VCC) Derivative Contracts.” Initially published in October 2024, this guidance outlined factors for consideration by designated contract markets when addressing the design and listing for trading of voluntary carbon contract derivatives contracts. However, the agency noted several other rules currently under its authority, including Commodity Exchange Act §5c and CFTC Regulations parts 38 and 40, that already set forth a regulatory framework for listing VCC derivatives contracts. The agency is withdrawing the guidance in an effort to avoid placing a disproportionate focus on VCC derivative contracts and to avoid inconsistencies in application.

CFTC Withdraws Operational Resilience Framework Proposed Rules 

On September 9, 2025, the CFTC issued a notice of withdrawal for proposed rulemaking “Operational Resilience Framework for Futures Commission Merchants, Swap Dealers, and Major Swap Participants,” initially issued on January 24, 2024. The proposed rules would have required futures commission merchants, swap dealers, and major swap participants to establish and implement an operational resilience framework comprised of an information and technology security program, a third-party relationship program, and a business continuity and disaster recovery plan. In addition, the proposal would have imposed requirements related to governance, training, testing, recordkeeping, and incident notifications in support of the operational resilience framework.

With the withdrawal notice, the agency will reconsider the practicality of the proposed rules given the intersection of operational resilience rules established by other regulators.

CFTC Issues Policy Statement on Referrals for Potential Criminal Enforcement

On September 5, 2025, the CFTC issued a policy statement describing plans the agency will take to address criminally liable regulatory offenses to adhere with EO 14294, Fighting Overcriminalization in Federal Regulations. By May 9, 2026, the agency, in consultation with the Attorney General, will provide the Director of the Office of Management and Budget a report containing:

  • A list of all criminal regulatory offenses enforceable by the Commission or the U.S. Department of Justice (DOJ).
  • For each such criminal regulatory offense, the range of potential criminal penalties for a violation and the applicable mens rea (state of mind) standard for the criminal regulatory offense.

The policy also outlines high-level considerations that will be weighed when deciding whether to refer potential violations to the DOJ. These considerations include harm caused or risk of harm caused by the potential offense, potential defendant gain, specialized knowledge or industry expertise of the defendant, awareness of the unlawfulness of the activity, and any patterns of misconduct.

Financial Accounting Standards Board

FASB Revises Internal-Use Software Cost Guidance

On September 18, 2025, FASB published an ASU that updates the guidance on accounting for internal-use software costs, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40).

Under current guidance, entities are required to capitalize developmental costs for internal-use software based on both the nature of the cost incurred and project stage in which the cost was incurred. The updates serve to modernize software accounting guidance and improve the operability of the guidance by removing the stage-based model. Moving forward, entities will be required to capitalize software costs when the following conditions are met:

  • Management has authorized and committed to funding the software project, and
  • Project completion is probable, and the software will be used to perform the function intended.

In evaluating the probability that the project will be completed, an entity is required to consider whether there is significant uncertainty associated with the development activities of the software.

The amendments in the ASU are effective for all entities for annual reporting periods beginning after December 15, 2027. Early adoption is permitted as of the beginning of an annual reporting period.

Accounting for Debt Exchanges

On September 3, 2025, the FASB released its tentative decisions related to accounting for debt exchanges. The FASB is finalizing new guidance to simplify how companies account for debt exchanges involving multiple creditors, allowing certain exchanges to be treated as the issuance of new debt and extinguishment of old debt without requiring complex quantitative analysis, which will reduce cost and complexity for preparers and better reflect the economics of these transactions. This update is especially relevant for financial institutions and entities frequently involved in debt restructurings, aligning with broader FASB efforts to modernize and streamline financial reporting, making the process easier and less burdensome for companies.

How Forvis Mazars Can Help

In the heavily regulated banking industry, leaders face more challenges than ever, from managing shareholder and regulatory expectations to pursuing digital innovation. Forvis Mazars can help your financial institution tackle issues inherent to the industry, including market growth, internal control threats, industry consolidation, and compliance. We have the skills and experience in financial services that you can trust. Combine our focus on Unmatched Client Experience® with the resources of a global firm, and you will find that Forvis Mazars is the trusted adviser your institution needs. Serving you is our passion and privilege.

If you have any questions or need assistance, please reach out to a professional at Forvis Mazars.

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