LEGISLATIVE UPDATE Defending the Industry By Jenifer Waller, President and CEO, We are ready for a challenging legislative year in 2026. 2025 proved to be a year of fast-paced change, especially on the federal front. Federally, here is what we are working on. Sens. Josh Hawley (R-MO) and Bernie Sanders (I-VT) are sponsors of a 10 Percent Credit Card Interest Rate Cap Act, which would impose an all-in annual percentage rate cap of 10% on credit cards. The bill has not had a markup hearing yet. While the bill isn’t a current threat, the bipartisan sponsorship is a concern. We are ensuring lawmakers understand that interest rate caps restrict credit to those who may need credit the most. The Trump administration has formally determined the Consumer Financial Protection Bureau’s (CFPB) current funding mechanism is unlawful, a move that puts the agency on track to close in the coming months when its existing cash runs out. On Nov. 11, the DOJ notified federal courts that the CFPB anticipates exhausting available funds in early 2026, based on an Office of Legal Counsel opinion concluding that there are no “combined earnings of the Federal Reserve System” from which to transfer under 12 U.S.C. § 5497 while the Fed operates at a loss. The DOJ indicated that the Bureau expects to continue normal operations at least through Dec. 31, 2025, but a lapse would trigger Antideficiency Act constraints — pausing most rulemaking, examinations and enforcement except for narrow “emergency” functions. If a funding lapse occurs, rulemakings like Section 1071 could slow or pause, timelines could slip, and federal oversight gaps might spur more state attorney general and regulator activity. Sen. Hagerty’s Deposit Insurance Reform bill had a House hearing. The proposal would increase coverage on non-interest-bearing business accounts to $10 million. The GSIBs are exempt, and smaller banks would not pay for the increase. Banks over $10 billion would pay. Many have stated that there is not any immediate cost expected. The FDIC has given a response to several questions asked by members of Congress, but the FDIC’s response is confidential. After the House hearing, it is clear the bill will not pass in its current form. CBA has joined several other states in lobbying for changes to the Transaction Account Guarantee (TAG) program, making the TAG ability permanently in place and not requiring Congressional action to activate TAG. While we continue to push for broad DIF reform, the window of time is very narrow to get anything. To date, no one is opposed to the TAG proposal, which may be all we are able to get. The GENIUS Act/Stablecoin was signed into law on July 18. We continue to be concerned about the potential for funds to leave the banking system and be deposited in stablecoins. If that were to happen, the impact on access to credit would be damaging to the economy. Permitted issuers must maintain reserves backing the stablecoin on a one-to-one basis using U.S. currency or other similarly liquid assets. Bank deposits are not insured one-to-one. This may increase the desirability of stablecoins. The bill states stablecoin issuers are explicitly prohibited from paying interest or yield to holders of their stablecoins. This and Alison Morgan, Director of State Government Relations, CBA Colorado Banker 4
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