Fintech · Industry brief

Enova International withdrew its applications to the Federal Reserve and OCC to acquire Grasshopper Bancorp following regulatory and political opposition over concerns the deal would circumvent state usury laws. The fintech had partnered with banks in states without interest rate caps to offer loans at higher rates than permitted in most states, prompting 20 state attorneys general to urge regulators to reject the $369 million deal and Senate Democrats to oppose it as inconsistent with predatory lending standards. Enova CEO Steve Cunningham stated the withdrawal reflected unclear regulatory standards for nonbanks seeking bank charters and noted the company's future does not depend on becoming a bank. The OCC and Federal Reserve did not immediately comment on the withdrawal, though the case reflects broader regulatory scrutiny of fintech banking license applications and enforcement concerns around consumer credit practices.

FIS announced significant momentum across its banking franchise amid three industry reshaping trends: a resurgence in de novo bank launches, accelerating M&A consolidation, and growing demand for progressive modernization. The company signed five de novo banks in the first half of 2026, including Mercury, which received conditional OCC approval for a national bank charter and selected FIS as its core platform. FIS secured a core banking relationship for a newly merged institution with over $100 billion in assets, capitalizing on accelerated U.S. bank M&A activity that posted the highest monthly deal count since 2021 in July 2025. Two top-fifteen U.S. banks have completed proofs of value for FIS' component-based "evergreen" modernization approach, which enables incremental adoption of AI and digital capabilities without disruptive rip-and-replace transformations, addressing regulatory rigor requirements for both new entrants and large incumbents navigating rapid consolidation and infrastructure modernization cycles (Source: FIS Press Release, September 15, 2026).

On September 11, the FDIC, Federal Reserve Board, NCUA, and OCC jointly requested comment on proposed guidance to replace their 2023 Interagency Guidance on Third-Party Relationships, emphasizing a principles-based approach to third-party risk management rather than prescriptive checklists, with the update responding to concerns that the previous guidance chilled partnerships with innovative fintech firms and imposed one-size-fits-all requirements (Federal Register, 60-day comment period). On September 2, the OCC granted preliminary conditional approval to Revolut Bank US, N.A. and OpenReserve Bank, N.A., both de novo national banks offering digital asset custody and cryptocurrency-related services, with Revolut planning stablecoin-based remittances and OpenReserve planning a wholly-owned stablecoin subsidiary (OCC letters). On September 8, the FTC entered a $12 million stipulated order against Humboldt Merchant Services, a payment processor, for facilitating fraud through shell company merchant accounts, highlighting continued upstream enforcement focus on payment processors rather than just fraudulent merchants themselves (FTC order). Connecticut AG William Tong issued a consumer alert on September 3 warning about unregulated offshore DeFi exchanges operating outside regulatory frameworks with leverage as high as 100x-250x and anonymous trading, noting at least one Connecticut consumer lost $200,000 on such a platform (Connecticut AG office).

On August 18, 2026, the SEC issued Regulation Crypto Assets (Reg CA), a proposed rule package creating two new registration exemptions for crypto-asset investment contracts: a startup exemption permitting up to $5 million in sales over a four-year window, and a tiered fundraising exemption permitting up to $20 million (Tier 1) or $75 million (Tier 2) in 12-month periods. The proposal also introduces an investment contract safe harbor allowing issuers to file a Form TR certifying cessation of promised managerial efforts, after which the underlying crypto asset would no longer be treated as a security. The rule preserves full antifraud and antimanipulation enforcement authority, makes exemption noncompliance independently actionable under Securities Act Section 20, and leaves state antifraud jurisdiction and federal criminal prosecution authority untouched. Issuers relying on either exemption must file disclosure on new forms (Form NOR for startup, Form 1-CRYPTO for fundraising) and remain subject to periodic reporting obligations and compliance verification. The 60-day public comment period closes October 20, 2026 (Securities Act Release No. 33-11434; Exchange Act Release No. 34-106150).