Deregulation arrived with homework attached
June's Federal Register did more to reshape US financial regulation than May's executive orders. The banking agencies rescinded the 2023 Basel Endgame and re-proposed capital rules that run to 1,500 pages, introduce a first-ever operational risk charge, and move mortgage servicing assets to a flat 250% risk weight. The comment period has already closed, so the shape is fixed enough to model now.
The month's most uncomfortable development sits in underwriting. The CFPB says creditors may weigh immigration status and deportation risk when assessing ability to repay, while FinCEN and the banking agencies want enhanced due diligence whenever an ITIN stands in for an SSN. Blanket ITIN denials invite fair-lending litigation, so the lawful path is narrow: individualised assessment, documented reasoning, and no nationality proxies in the models.
The federal-state split kept widening. HUD is narrowing Fair Housing Act enforcement to intentional discrimination while New York and California enforce disparate impact in full, and New York's Mini-1033 bill would put statutory penalties of up to $10,000 per violation behind open banking data rights that Washington is softening. Crypto, meanwhile, is getting a rulemaking calendar instead of an enforcement docket, with the SEC's comprehensive Crypto Assets rule sitting at OIRA since March.
Our June US Regulatory Horizon Scanning brief covers every development across banking, consumer credit, crypto, fair lending, investments, ESG, insurance, payments, and financial crime, with an action checklist at the end of each sectio
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