May 17, 2026 to May 23, 2026

This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news for professionals in the financial industry, banking, credit unions, insurance, payment processing, fintech, credit card issuing, asset management, venture capital, private equity, and crypto-currencies. Once a week, we break down the most important updates in this space in under five minutes.

Want to track other GR news in adjacent industries? Don’t miss this week’s updates in ICT & Cybersecurity. Also consider subscribing to our Finance - Ottawa edition covering critical GR news north of the border.

📋 In This Week's Newsletter

• 🇺🇸 Federal Government News
• 📜 Legislative Updates
• 🗺️ State Government News
• 📚 What We're Reading This Week

Federal Government News

Executive Order: Restoring Integrity to America's Financial System

President Trump signed an executive order on May 19, 2026, that directs the Treasury Secretary to strengthen Bank Secrecy Act rules, issue new advisories on suspicious transactions, and propose changes to customer due diligence requirements for financial institutions. The order identifies risks associated with illicit financial activity, such as low-dollar cross-border transfers linked to terrorism and narcotics, as well as credit vulnerabilities related to lending to non-work authorized individuals. The Consumer Financial Protection Bureau is tasked with clarifying regulations on borrower risk factors, and federal regulators must clarify guidance on managing credit risks for non-work authorized borrowers. The action is to be implemented in accordance with applicable laws and does not create new enforceable rights.

Sources: www.whitehouse.gov

Executive Order: Integrating Financial Technology Innovation into Regulatory Frameworks

A May 19, 2026 executive order instructs U.S. federal financial regulators to review and update regulations that may impede financial technology innovation. The order defines fintech firms as non-bank companies using technology for financial products and services, including digital assets and blockchain-based services. Agencies have 90 days to identify regulatory barriers and 180 days to encourage partnerships with fintechs and financial institutions. The Federal Reserve is asked to assess legal frameworks and risks for fintech access to Reserve Bank payment accounts and must report findings within 120 days. Any subsequent transparent application procedures for payment account access should be established if legally permissible.

Sources: www.whitehouse.gov

OCC Preemption Determination: State Interest-on-Escrow Laws

The Office of the Comptroller of the Currency (OCC) issued a final rule effective June 18, 2026, determining that federal law preempts state laws requiring OCC-regulated banks to pay interest on real estate escrow accounts or assess fees, including laws in fourteen states and territories. The rule explains that federal authority under the National Bank Act allows banks to determine the terms of escrow accounts as a business judgment, preempting state-level requirements that restrict such discretion. The OCC states the preemption will reduce operational complexity for banks by allowing a uniform national standard and is expected to reduce costs, especially regarding mortgage origination and administration.

Sources: www.federalregister.gov

NCUA Proposed Rule: Implementing the GENIUS Act for Stablecoin Issuers

The National Credit Union Administration (NCUA) proposed regulations to implement the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act). The supplemental rule, published May 18, 2026, covers standards for licensing, auditing, reserve management, redemption, and capital requirements for payment stablecoin issuers that are subsidiaries of federally insured credit unions. The proposal details permissible activities, risk management standards, asset custody, share insurance treatment for stablecoin reserve accounts, and deconsolidation of stablecoin issuers in parent FICU capital calculations. Comments are due by July 17, 2026.

Sources: www.federalregister.gov

OCC Final Rule: Real Estate Lending Escrow Accounts

The OCC finalized a rule clarifying that national banks and federal savings associations have authority to establish and maintain real estate escrow accounts, including control over related fees and payment of compensation to escrow account holders. Effective June 18, 2026, the rule affirms such decisions are made as a matter of business judgment within the framework of safe and sound banking practices. The rule is intended to provide certainty for banks regarding their powers amid recent legal challenges to state escrow laws.

Sources: www.federalregister.gov

Legislative Updates

H.R. 2066: Investing in All of America Act of 2025

H.R. 2066, the Investing in All of America Act of 2025, became Public Law No: 119-92. The law adjusts leverage limits for Small Business Investment Companies and exempts certain investments in low-income, rural, or tech-focused businesses from the leverage cap.

Sources: www.congress.gov

S. 4601: A bill to prohibit money services businesses from engaging in any transaction that involves a central bank digital currency issued by the People’s Republic of China

S. 4601 would prohibit money services businesses from transacting in digital currency issued by the People’s Republic of China. The bill was read twice and referred to the Senate Committee on Banking, Housing, and Urban Affairs on May 20, 2026.

Sources: www.congress.gov

H.R. 826: COVID Fraud Transparency Act of 2025

H.R. 826, the COVID Fraud Transparency Act of 2025, was ordered to be reported in the Nature of a Substitute by the House Commerce Committee by a vote of 23 - 0 on May 20, 2026. The bill focuses on transparency in disclosing COVID-related fraud information.

Sources: www.congress.gov

S. 4622: A bill to amend the Fair Credit Reporting Act to prohibit the inclusion of medical debt on a consumer report

S. 4622, which would amend the Fair Credit Reporting Act to prohibit consumer reporting agencies from including medical debt on consumer reports, was read twice and referred to the Senate Committee on Banking, Housing, and Urban Affairs.

Sources: www.congress.gov

S. 4585: A bill to amend the Federal Reserve Act to mandate discount window testing

S. 4585 was introduced to amend the Federal Reserve Act to require periodic testing of the Fed's discount window by eligible institutions. The bill was referred to the Senate Committee on Banking, Housing, and Urban Affairs.

Sources: www.congress.gov

State Government News

Indiana Enacts Ban on Cryptocurrency Kiosks and Sets Proxy Advisor Requirements

Indiana Governor signed House Enrolled Act 1116 banning cryptocurrency kiosks in the state, making operation a deceptive act subject to Attorney General action. House Enrolled Act 1273 was also signed, requiring proxy advisors in the state to disclose financial analyses and processes when recommending votes to shareholders.

Sources: www.indianasenaterepublicans.com

California Report: State’s Economy Continues to Outpace the Nation

A new report from the Public Policy Institute of California found California’s gross domestic product reached $4.3 trillion in 2025, growing 90% over 25 years and adding nearly 3 million jobs since 2005. Governor Gavin Newsom credited state investment and policy for continued business growth and job creation.

Sources: www.gov.ca.gov

Texas Appointments to Upper Colorado River Authority

Governor Abbott reappointed Nancy Blackwell, Fred Hernandez, Jr., and Mason Vaughan to the Upper Colorado River Authority Board of Directors for terms ending February 1, 2031. Vaughan is president and CEO of Lone Oak Bank.

Sources: gov.texas.gov

What We're Reading This Week

• Trump tells Fed to consider fintech access to payment accounts: President Trump instructed the Fed to evaluate expanding payment account access for fintechs and non-banks.
• Fed proposes limited payment accounts for fintechs, others: The Federal Reserve is considering a proposal to allow limited payment accounts for fintech firms and uninsured entities.
• Citi partners with BlackRock's HPS for $17.5 billion private credit program: Citi and BlackRock's HPS team up to launch a $17.5 billion private credit investment platform.
• Move Over, Private Equity. It’s Great to Be a Banker Again.: The banking sector is experiencing renewed profitability and activity, outshining private equity in recent months.
• When Your Lender Is Also Your Best Friend: An exploration of the growing trend of borrowing and lending money among friends.
• Is the Bond Market Signaling Danger or Opportunity? Or Both?: Market observers debate whether current bond market conditions indicate risk or potential for investors.
• The Dangerous Brew That’s Rattling Bond Markets: Analysis of recent volatility and risk factors shaking global government bond markets.
• Opinion | You’re Probably Overinvested in Bonds: Commentary on why many investors may hold an excessive allocation of bonds amid changing market dynamics.

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