prohibition does not apply to affiliates. We are working to close this loophole through a market structure bill. These are the changes we are asking for: 1. Strengthen the prohibition on interest payments for payment stablecoins by extending it to brokers, dealers, exchanges and affiliates of payment stablecoin issuers. 2. State Chartered Depositories: Repeal Section 16(d) of the GENIUS Act to restore state authority over out-of-state chartered financial institutions. Many are acting as money transmitters. 3. Nonfinancial Company Activity: Close loopholes in the prohibition on nonfinancial companies being payment stablecoin issuers by removing all approval pathways and prohibiting both public and private nonfinancial entities. Bills have been introduced to increase regulatory asset thresholds and index them for inflationary growth. There is a proposal that increases the current Dodd Frank Act (DFA) $10 billion threshold to $50 billion. The concern is that the Senate doesn’t have the appetite to take the threshold that high. Congress is trying to find what increase would pass. It is important to note that this threshold increase would not apply to the Durban amendment. We have lobbied for it to be included, but the inclusion of Durbin would most likely kill the bill. The Supervisory Modifications for Appropriate Risk-Based Testing Act of 2025 would increase the threshold for a limited-scope examination after an on-site, full-scope exam from $3 billion to $6 billion. The Tailored Regulatory Updates for Supervisory Testing Act of 2025 would increase the total asset threshold under which institutions qualify for an 18-month exam cycle from $3 billion to $6 billion. We will continue to seek opportunities to increase and index all regulatory thresholds. CFPB has proposed new rules regarding 1071 and 1033. We are also lobbying Congress to make permanent changes to prevent the yo-yo effect with the next administration. At the time of drafting this article, we did not yet have the proposed changes to the 1033 rules. These are 1071 proposed changes (November 2025): • Narrowed Scope: Exclude some agricultural lending, merchant cash advances and loans under $1,000 (inflation-adjusted). • Higher Thresholds: Increase the number of covered credit transactions needed to qualify as a “covered financial institution.” Increasing the threshold from 100 to 1,000 originations in each of the two preceding calendar years, using only small business originations (not small farm). • Set a single compliance date — Jan. 1, 2028 — for institutions above the threshold in both 2026 and 2027. Institutions can begin collecting limited demographic data 12 months before their compliance date to test systems. • Tighten the “small business” definition from gross annual revenue of $5 million or less to $1 million or less, with future inflation adjustments in $100,000 increments every five years starting in 2035. The Bureau is seeking SBA approval for the alternative size standard and highlights alignment with Regulation B and the CRA “smaller business” revenue metric. • Confine initial data to statutory fields and a small set of discretionary items needed to make those statutory fields useful (e.g., NAICS code, time in business, number of principal owners). The CFPB proposes to remove several discretionary fields, including application method, application recipient, denial reasons, pricing components (including interest rate and fees) and number of workers. • Change the demographic collection in two ways. First, consistent with Executive Order 14168, the proposed rule would remove LGBTQI+ owned business status and require the collection of principal owners’ sex using a static male/female choice. Second, while the rule would still require race/ethnicity for principal owners, the Bureau seeks comment on whether to move from disaggregated subcategories to only aggregate categories in the initial build to reduce complexity. The right for applicants to refuse to provide demographic information would be more prominent. 5 Colorado Banker
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