The Roundup: FDIC Aims to Edit Signage Rule, NY AG Sues Payment Platform, State AI Regulation, Rate Cut Speculation, Addressing Marketing Compliance Risks

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: The FDIC proposes changes to its digital signage requirements, NY AG sues Zelle, States take up AI regulation, Fed Chair to speak amid rate cut speculation, CFPB moves to scale back nonbank oversight, and Beyond Deregulations, addressing current compliance risks.

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FDIC Approves Proposal To Amend Signs and Advertising Requirements

The Federal Deposit Insurance Corporation (FDIC) Board approved a proposed a rule to amend regulations governing the display of the FDIC official digital sign and non-deposit signage. The proposal would simplify requirements for banks’ display of the FDIC official digital sign and non-deposit signage on digital deposit-taking channels, such as bank websites and mobile applications, as well as on ATMs and like devices. The proposal would focus display requirements for the FDIC official digital sign and the non-deposit sign on the screens and pages where signage would be most relevant for consumers. 

NY Attorney General Sues Zelle After CFPBs Dropped Case

New York Attorney General filed a lawsuit in state court against Early Warning Services (EWS)—the bank‑owned operator of the Zelle payments platform—for failing to protect consumers from widespread fraud. The complaint alleges that EWS allowed scammers to exploit design flaws in Zelle since its 2017 launch, resulting in over $1 billion in losses between 2017 and 2023. The lawsuit claims that basic safeguards were known but delayed until 2023, and consumer complaints were poorly handled. The suit revives issues initially raised by the Consumer Financial Protection Bureau (CFPB) in a December 2024 federal case, which the agency dropped in March 2025—allegedly due to shifts in the federal administration’s policy priorities.

Experts Warn Banks About the Dangers of Over-Reliance on AI

Industry experts caution that banks are increasingly vulnerable as they lean too heavily on generative and agentic AI—systems that autonomously take on tasks with minimal human oversight.Critics warn against CEOs treating AI recommendations as intelligent decision‑making rather than tools, highlighting that true intelligence requires human context and judgment. While AI can accelerate research and support creative thinking, over‑outsourcing cognitive tasks risks poor strategy and erosion of thoughtful leadership. 

A recent Infosys survey reveals that 86% of executives recognize new risks and compliance challenges posed by agentic AI, while 95% have already faced AI‑related incidents—including privacy breaches, regulatory missteps, or incorrect predictions—over the past two years.

What’s Next for State AI Regulation

With federal AI regulation stalled and efforts to impose a moratorium on state-level rules failing, U.S. states are now filling the federal void as the epicenter of AI oversight. States —including Colorado, California, Virginia, Texas, and others—are taking up a flurry of AI bills to ensure that amid AI innovation regulators also create “guardrails” around uses of AI and that consumers can identify AI-generated content. State attorneys general are also sharpening their focus on AI under existing consumer and privacy laws.

Significant Stat: 95% of executives say they have experienced AI-related incidents, such as privacy violations, regulatory non-compliance or inaccurate or harmful predictions in the past two years according to research released by the Infosys Knowledge Institute. Read more

Fed Chair Powell to speak Aug 22 amid speculation on rate cuts, replacement

Federal Reserve Chair Jerome Powell will speak on August 22 at the Jackson Hole symposium, addressing the economic outlook and Fed policy amid growing expectations of a 25‑basis‑point rate cut in September. His appearance comes as President Trump pushes for faster easing and considers potential replacements ahead of Powell’s term ending in May 2026, highlighting rising political pressure on the Fed.

CFPB Moves to Scale Back Nonbank Oversight

The CFPB has proposed raising supervision thresholds for nonbanks in auto lending, credit reporting, debt collection, and money transfers, limiting oversight to only the largest firms. The plan, part of a broader deregulatory push, would significantly reduce the bureau’s reach. Public comments are open until September 22.

Beyond Deregulation: Addressing Current Marketing Compliance Risks

Regulatory Shifts ≠ No Risks. With state-level enforcement on the rise and consumer protection in the spotlight, the rules of the game are shifting—fast. Join the COMPLY Community for this webinar with experts from PerformLine & Venable LLP on Wednesday, August 27 at 1PM where they’ll dive into shifting state & federal priorities, emerging enforcement trends—and how to evolve your marketing compliance strategy to stay ahead. Register