The Roundup: Waller Backs December Rate Cut, FTC Antitrust Bid Fails, Oversight Pullback Raises Red Flags, CFPB’s Future, OCC Backs Crypto Fees

Welcome to the PerformLine Regulatory Compliance Roundup, home of the latest news, articles, and reports from our industry, curated for you. Let’s get into it.

In this edition:  Fed backs December rate cut, Court sides with Meta, The Great Regulatory Pullback, CFPB’s uncertain future, OCC eases crypto path for banks

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Waller Backs December Rate Cut Amid Labor Market Woes

Federal Reserve Governor Christopher Waller supports a rate cut at the upcoming December FOMC meeting, citing weakening labor market signals and softening consumer sentiment. Speaking in London, Waller emphasized risk management amid slowing payroll growth, tepid hiring forecasts, and early signs of layoffs from corporate leaders.

He argued that while some policymakers point to strong financial markets as evidence that monetary conditions remain loose, those indicators don’t reflect the economic pressure felt by everyday Americans. “It’s loose for corporate America,” he said, but not for lower and middle-income households who are being squeezed the most.

Waller’s remarks highlight growing concern over household-level financial strain and the need for preemptive monetary easing. His stance underscores the deepening divide within the Fed over whether current conditions justify a shift in policy. American Banker

FTC Loses Antitrust Case Against Meta  

The Federal Trade Commission suffered a major setback last week as a federal judge ruled that Meta’s acquisitions of Instagram and WhatsApp did not violate antitrust law. The agency argued Meta pursued a “buy or bury” strategy to dominate personal social networking, but Judge James Boasberg found the FTC failed to prove that Meta’s actions stifled competition. Instead, the court sided with Meta’s position that the social media landscape has evolved significantly, citing platforms like TikTok and YouTube as strong competitors. The ruling could make it harder for the FTC to challenge Big Tech mergers in the future, especially as courts appear more willing to adopt broad market definitions that favor tech giants. The New York Times

Regulatory Pullback Reshapes Financial Oversight & Raises Crisis Concerns

A sweeping reduction in financial oversight is underway across multiple U.S. regulators. The Federal Reserve, CFPB, FDIC, and OCC are scaling back supervision and staffing to align with the current administration’s deregulatory agenda. The CFPB has halted exams entirely and plans to close unresolved cases without verification, while the Fed has trimmed its supervision team by 30%. Critics warn these moves create blind spots that could allow emerging risks to go unchecked, potentially setting the stage for the next financial crisis. This rollback in oversight doesn’t signal a free pass. Financial institutions still carry the responsibility to identify and manage regulatory risks proactively, regardless of examiner scrutiny. The New York Times

CFPB’s Future Uncertain as New Director Nominated

Stuart Levenbach has been nominated to lead the Consumer Financial Protection Bureau, a move that allows Acting Director Russell Vought to remain in place while the nomination is considered. The Bureau faces operational uncertainty, with limited funding past December 31 and ongoing legal challenges around staffing and budget authority. American Banker

OCC Opens Path for Crypto in Bank Operations

The OCC has clarified that national banks are allowed to pay blockchain transaction fees when engaging in approved crypto-related activities. They may also hold crypto assets on their balance sheets, either to cover those fees or for platform testing purposes. This update, outlined in Interpretive Letter 1186, reflects the agency’s broader move toward accommodating responsible digital asset activity within traditional banking, as long as it aligns with safety and regulatory standards. Payments

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