Authority of States To Enforce the Consumer Financial Protection Act of 2010; Rescission
CFPB rescinds its May 2022 interpretive rule that clarified states' authority to enforce the Consumer Financial Protection Act against national banks and federal savings associations. This rescission removes the prior guidance, potentially limiting state enforcement actions against federally chartered institutions.
Aforeworn detected this change in the Money Services & Money Transmitters space on July 30, 2026 and published this briefing so affected operators are forewarned rather than caught off guard. It is rated Medium urgency. Money services businesses (MSBs), money transmitters, payment processors, crypto/virtual-currency firms, remittance providers, and fintech wallets that operate under state licensing and may rely on state enforcement against federally chartered competitors. should confirm how it applies to their specific situation before acting. There is a time constraint attached: No specific deadline stated; the rescission is effective upon publication (May 15, 2025).. Acting after that point can mean penalties, a lapsed licence, or lost eligibility — exactly the kind of surprise Aforeworn exists to prevent. Aforeworn monitors Money Services & Money Transmitters continuously and turns every detected change into a plain-English briefing like this one, so you always know first. Forewarned is forearmed.
What changed
The CFPB rescinded its May 2022 interpretive rule that had clarified the scope of state enforcement authority under section 1042 of the Consumer Financial Protection Act. This change removes the prior guidance, potentially reducing states' ability to enforce consumer protection laws against federally chartered institutions.
Who it affects
Money services businesses (MSBs), money transmitters, payment processors, crypto/virtual-currency firms, remittance providers, and fintech wallets that operate under state licensing and may rely on state enforcement against federally chartered competitors.
What you must do
Review state enforcement capabilities and assess whether state regulators can still pursue actions against federally chartered entities in your sector. Monitor for any state-level guidance or policy changes in response to this rescission.
Deadline
No specific deadline stated; the rescission is effective upon publication (May 15, 2025).
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