Bill Sullivan, Associate Managing Director of Government and Industry Relations at Nacha, will deliver the keynote address, “Payments Policy and Election Politics,” at NEACH’s Payments Management Conference (PMC) at the Foxwoods Resort Casino, May 19-20. He will delve into hot-button topics and provide a behind-the-scenes look at what high-ranking officials say about payments policy regarding congressional and regulatory priorities.
With so much transpiring already, we recently sat down with Bill to gain his insights into the latest developments on the Hill that are affecting payments policy—and what it means for our members. Here are some highlights of that discussion.
Payments Policy
“Let me start by clarifying what I do as the Associate Management Director of Government and Industry Relations at Nacha,” Sullivan began. “My job is to advocate and inform—advocate for the use of the ACH network, the value of the network, and the safety of the network and to help educate regulators, Hill staff and FI and end-user trade groups.”
Against this backdrop, Sullivan began by identifying four policy developments in Washington, from a high-level perspective, that he thinks could impact financial institutions this year, underscoring how quickly things can change, particularly under the current administration.
Let’s start by taking a look at the regulatory environment.
The Regulatory Environment
“We’re facing an environment marked by cuts in regulatory agencies, leading me to expect reduced enforcement in the next four years,” Sullivan said. “It could lead to a more favorable regulatory environment for financial institutions, but this atmosphere could also enable FinTechs to compete.”
While some in the industry applaud reducing the regulatory burden, there is a potential downside. It could have a negative impact because there may not be people in charge, based on their longevity, areas of expertise, or just sheer workload, who can make the changes.
Eliminating Debanking
Examining whether there is improper debanking also ranks highly among the new administration’s priorities. The current focus on debanking is reminiscent of Operation Choke Point (2013-2017), where the government tried to “choke out” legal industries considered high risk, such as gun and ammunition manufacturers, along with other sectors disfavored by the administration. Under the Biden administration, the so-called Operation Chokepoint 2.0 was an alleged attempt to pressure banks into severing ties with crypto, according to CNBC. According to the news outlet, “His (Trump’s) executive order on crypto promises ‘fair and open access’ to financial services.”
“It is a priority of the White House, Republicans, and both the House and Senate to create legislation that prohibits debanking with some pretty stiff penalties,” said Sullivan.
Crypto and Digital Wallets
Other areas to watch include crypto and digital wallets as the administration has taken a shine to these topics in the early days. Still, Sullivan says he doesn’t anticipate a lot of crypto-type legislation moving through Congress at lightning speed.
“Lawmakers are working on understanding crypto,” said Sullivan. “I suspect we’ll see quite a few hearings, particularly in the Senate, that are more education-based versus legislative-based.”
According to Sullivan, the Senate likely will look to the House to take the lead on any piece of cryptocurrency they try to move through. Once the House weighs in on it, the Senate will look at it to see if they can reach a consensus.
With a greater focus on digital wallets, payment charters might also allow non-banks to access the payment or banking system. However, since non-banks differ from financial institutions, legislators and regulators would still need to determine how they would be regulated.
Regarding fair access for all citizens, Sullivan does see enhanced potential with digital wallets. If you can use your phone, you can apply for and gain access to some credit cards immediately, book airline tickets, and more. He expects to see strong growth in digital wallets under the new administration.
Consumer Financial Protection Bureau (CFPB)
And finally, we address the administration’s proverbial elephant in the room: the Consumer Financial Protection Bureau (CFPB).
“Like many, I was surprised that the CFPB was impacted almost immediately after the inauguration,” said Sullivan. “There are mixed signals here. On the one hand, OPM [Office of Personnel Management] has cut back staff and basically said, ‘We don’t want you doing anything that you were working on before President Trump became president.’ On the other hand, the President nominated Jonathan McKernan, who has been at the FDIC and served in many roles in Congress and the federal government.”
Sullivan believes that, if confirmed, McKernan could attempt to return the CFPB to its original mission of educating consumers and moving away from other priorities spearheaded under Rohit Chopra during his four-year tenure.
“I think McKernan is a good pick, and I don’t think people should be overly concerned about him leading the CFPB if he is confirmed.”
NEACH’s Payments Management Conference
With so much change in the running of government payments, regulatory agencies, and legislative bodies, this year will require a more intense focus on activities and guidance from the White House, regulators, and Capitol Hill. And with the pace of change we’re witnessing, the payments landscape may look vastly different a few months from now.
Join us for our Payments Management Conference, May 19-20, at the Foxwoods Resort Casino, to hear Sullivan’s keynote, providing the latest updates on the payments policy environment, and what FIs need to consider for the remainder of 2025 and into 2026.
To learn more about our conference and speakers or to register, visit pmc.neach.org.