Fintech Takes

Fintech Takes: Regulatory Roulette on Capital Hill

Feb 26, 2025

Rob Blackwell, Chief Content Officer at Intrafy and former American Banker editor, shares insights on the turbulent world of banking regulation. He discusses the potential weakening of the CFPB amidst political pressures and the importance of regulatory oversight for fintech partnerships. The conversation highlights the FDIC's push for tailored supervision without sacrificing scrutiny, and the OCC's new leadership fostering cooperation. Blackwell underscores the crucial role of community banks in local economies and the challenges posed by evolving regulations.

01:09:52

Episode guests

Rob Blackwell

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Episode notes

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Quick takeaways

The future of the CFPB hangs in the balance as internal conflicts within the Trump administration shape its approach to consumer protection.

The new leadership at the FDIC is focused on promoting innovation and collaboration while addressing concerns about debanking and regulatory tailoring.

The Federal Reserve aims for a more balanced assessment of reputational risk in supervisory decisions, fostering transparency in banking practices.

Deep dives

The Impact of Leadership Changes at the CFPB

Recent leadership changes at the Consumer Financial Protection Bureau (CFPB) have raised concerns about its future operations. Russell Vought, the new acting director, is pushing for a halt to the CFPB's activities, including litigation and enforcement, effectively shutting down its operations. This abrupt shift has led to significant staffing changes, including planned layoffs and a refusal to accept additional funding, which may cripple the agency. Meanwhile, Jonathan McKernan has been nominated for the permanent director position, which could shift the bureau's activities toward a more conservative regulatory stance.

Intro

2min

Navigating CFPB's Regulatory Landscape

24min

Navigating Change in Banking Regulation

17min

Defending Community Banking

6min

Regulatory Changes at the OCC: A New Leadership Perspective

4min

Navigating Tensions: The Future of Banking Regulation

2min

Dynamics of the Fed: Supervision and Speculation

15min

Welcome to Fintech Takes! I’m Alex Johnson, and today we’re heading straight into the belly of the beast—Washington, D.C.—where regulators, banks, and fintechs are jockeying for position. Joining me is Rob Blackwell, a 20-year American Banker veteran, Intrafi’s Chief Content Officer, and host of the Banking with Interest pod.

Today, we're diving into the big four: CFPB, OCC, FDIC, and the Fed. Regulatory shifts are moving fast, so by the time this airs, this could all be outdated—but hey, c’est la vie!

First up, the push to gut the CFPB is gaining ground in some circles, but even banks and credit unions see value in maintaining a referee. Will the CFPB be sidelined (to, ahem, crypto’s benefit) or bounce back with a vengeance? Rob’s take is that it’ll be weakened, not wiped out—it’s too useful politically.

Next, the FDIC's tailored supervision shouldn’t mean loosening oversight, especially where fintech partnerships are involved. Small banks aren’t JPMorgan, but they still need scrutiny. Same goes for the OCC, where new leadership is prioritizing collaboration with banks while pushing for targeted regulation to keep things fair. No wild cards here; Trump’s picks are pragmatic, not radical.

Finally, the FDIC and Fed are pushing for clearer rules and more transparency, aiming to rein in overreach without forcing banks into unwanted partnerships. The challenge: giving banks discretion while preventing regulators from nudging them into silent exclusions.

Bottom line? The rules are changing, but power plays never do.

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