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News
SDBA UpdatesSDBA EventsOnline EducationCompliance AllianceABA Banking Journal: Lawmakers, policymakers express concern about interest-bearing stablecoinsOctober 29, 2025
The Genius Act bans payment stablecoin issuers from paying interest or yield on payment stablecoins, but the restriction can be bypassed when exchanges or other affiliates offer yield or rewards to stablecoin holders. The American Bankers Association has called on lawmakers to strengthen the law by expanding the prohibition to cover digital asset exchanges, brokers, dealers and affiliated entities. Several policymakers have expressed similar concerns. In an interview on the podcast Crypto in America, Federal Reserve Governor Christopher Waller said he views stablecoins as a pure payment instrument. “It’s not an investment vehicle. It’s not a time deposit where you’re holding it to earn interest,” he said. Sen. John Kennedy (R-La.) told Punchbowl News that bankers’ concerns about the loophole should be taken seriously. Sen. Mike Rounds (R-S.D.) told Politico Pro that the intent of the legislation was to ban yield payments to stablecoin holders. “This looks to me like it’s an end-run on the original legislation,” Rounds said. “So I’ve got concerns with that.” Back to TopABA Banking Journal: Court temporarily halts Section 1033 rule enforcementOctober 29, 2025
The 2024 rule implemented Section 1033 of the Dodd-Frank Act, which requires banks and other financial institutions to make a consumer’s financial information available to them or a third party at the consumer’s direction. The Kentucky Bankers Association joined the Bank Policy Institute and other plaintiffs in challenging the rule, arguing it jeopardized consumers’ privacy and account security. The rule was implemented under the CFPB’s prior leadership. In separate court filings in May, both the plaintiffs and CFPB asked the U.S. District Court for Eastern Kentucky to vacate the rule. The CFPB has since issued an advance notice of proposed rulemaking seeking public input as it drafts a replacement for the rule. In his order, District Judge Danny Reeves enjoined the CFPB from enforcing the 2024 rule until it has completed its reconsideration of the regulation. “Ultimately, the CFPB is currently engaged in rulemaking to reconsider the rule considering the plaintiffs’ concerns about its lawfulness,” he wrote. “Nevertheless, the plaintiffs and their members are being compelled to incur expenses that would be unrecoverable and unnecessary if the new rule substantially revises the existing requirements or if the current rule is vacated.” ABA respondsThe court order affirms the serious concerns raised by the American Bankers Association and other stakeholders regarding the rule’s legal foundation, scope and impact on consumer privacy and data security, ABA President and CEO Rob Nichols said in a statement. “The court’s decision provides a necessary pause for the bureau to engage meaningfully with stakeholders and address the rule’s significant flaws while ensuring banks don’t have to invest time and resources to comply with an overbroad and legally flawed rule that is actively undergoing substantial revision,” he said. “In the meantime, consumers will continue to reap benefits achieved without regulation thanks to industry standard-setting, innovation and partnerships that prioritize security, transparency and consumer control.” ABA last week sent a comment letter to the CFPB offering the following recommendations to make the revised data sharing rule more effective than the 2024 version. Back to topABA Banking Journal: Fraud Watch: Verifying Treasury checks before they’re cashedWith ABA’s every-increasing anti-fraud resources and training, bankers can save their banks and their customers a lot of money.October 30, 2025 | Paul Benda and Hannah Ibberson
While the Trump administration has directed Treasury to significantly reduce the volume of Treasury checks in the coming months, modernization is still some distance off and will ultimately depend on how many exemptions are permitted. For example, despite Treasury’s laudable effort to make Social Security payments electronically, the government is still issuing hundreds of thousands of paper checks just for Social Security beneficiaries. So we know Treasury checks are likely to be around at a significant volume for a while. Most bankers who deal with U.S. Treasury checks know about the Treasury Check Verification System. It’s a mechanism for verifying Treasury checks online; anyone can check them by entering the amount and the check number. However, until recently, this system did not verify the name of the payee, which criminals took advantage of by washing or reproducing them with different names. Having counterfeit checks that passed TCVS verification can be costly to banks. To address this, Treasury created a verification system with restricted access requiring an API. ABA volunteered to be a service provider for banks and provide access via the API as a free service for our members. Treasury quickly approved our application, and our team got on building the connection. Earlier this year, ABA made this access live to bank members through aba.com/tcvs. Anyone from an ABA member bank can access the TCVS portal, which is currently configured to verify single checks. Some banks have access managed by their central fraud teams, and others have deployed TCVS access at the teller level to validate a Treasury check when it’s presented at the branch. It’s up to the banks to figure out how they want to deploy this tool. In the first six weeks of public access, hundreds of banks had checked nearly 7,000 checks — and by July, banks were verifying $20 million worth of Treasury checks per day. In addition to giving their employees access to ABA’s TCVS portal, many banks are pushing their tellers to get aba.com accounts to access free-to-members ABA Frontline Compliance Training, which includes courses on check fraud. ABA also offers a check fraud toolkit and the ABA Fraud Contact Directory, which includes inside contact info for fraud claims for half of all banks in the U.S., as well as credit unions — because when it comes to stopping fraud, time is of the essence. With our TCVS access along with ABA’s other anti-fraud resources — and more in the pipeline — bankers can make a material impact on the flow of funds to criminals, and save their banks and their customers a lot of money. This article is adapted from a recent ABA Fraudcast episode. Paul Benda is EVP for risk, fraud and cybersecurity policy at ABA. Hannah Ibberson is a program manager at ABA where she works on ABA’s TCVS portal. Back to TopCISA News: Agriculture Cybersecurity Workshop and SeminarWednesday, November 12, 2025
This workshop and seminar covering agriculture cybersecurity will be held on Wednesday, November 12, from 12:00-8:00 p.m. at McCrory Gardens Education and Visitor Center (631 22nd Ave., Brookings, SD 57006). Location: McCrory Gardens | 631 22nd Ave, Brookings, SD 57007 Contact: Alexander "Sandy" Smart, Professor and SDSU Extension Interim Director This workshop will highlight results from three collaborative research projects between South Dakota State University and Dakota State University. The workshop is open to faculty, graduate students and undergraduate students interested in learning more about agriculture cybersecurity as it relates to the implementation of precision agriculture. Learn how data is secured as it is transferred from monitoring instruments to the cloud and how AI is used to detect crop anomalies for precision management. Andrew Rose, an advisor of BIO-ISAC, will present industry examples of agriculture cybersecurity issues and solutions to prevent data theft and ransom payments. Agenda
RegistrationThe cost to attend the workshop is $50. The public seminar, which begins at 7:00 p.m., is free to attend. Registration is required and can be completed HERE. Back to Top |
Several policymakers raised concerns with media outlets in recent days about a loophole in the Genius Act that allows stablecoin issuers to avoid its prohibition on paying interest.
This two-part workshop series is designed to help community banks establish a robust succession planning process. Participants will learn how to create a comprehensive succession plan, conduct talent assessments to identify skills gaps, and develop personalized development plans for their successors, focusing on leadership, management, and technical skills.
