Welcome to the Top 3 Innovating Payments News Headlines for the Week of March 31, 2025. On March 28, banking regulators announced plans to rescind the 2023 Community Reinvestment Act (CRA) final rule due to ongoing litigation. Meanwhile, President Donald Trump issued an executive order to phase out paper treasury payments by September 30, 2025, accelerating the push toward digital payments. Finally, the FDIC has provided new guidance clarifying how banks can navigate crypto-related activities.
Read on to learn more.
1. Banking Regulators to Rescind 2023 Community Reinvestment Act Rule (ABA Banking Journal)
The Federal Reserve, FDIC, and Office of the Comptroller of the Currency today (March 28) announced they intend to rescind the 2023 Community Reinvestment Act final rule "in light of pending litigation." They will instead reinstate the CRA framework that was in place before the rule. The agencies first proposed the rule in 2022 as part of a long-planned overhaul of the CRA framework. They finalized the rule the following year, although the Fed and FDIC board votes were not unanimous. (Read more.)
2. Trump Signs Order to End Paper Treasury Payments in 2025 (The Paypers)
The US Government has decided to phase out paper-based payments by 30 September 2025, under a new executive order signed by President Donald Trump. The move is aimed at increasing efficiency, reducing costs, and improving security in federal transactions, while ensuring exceptions for individuals without access to digital banking. Under the directive, the Department of the Treasury will cease issuing paper cheques for all federal disbursements, including benefits payments, vendor payments, tax refunds, and intragovernmental transactions. Federal agencies are required to transition to electronic funds transfer (EFT) methods such as direct deposit, prepaid card accounts, and digital wallets. (Read more.)
3. FDIC Clarifies Process for Banks to Engage in Crypto-Related Activities (FDIC)
Today (March 28), the Federal Deposit Insurance Corporation (FDIC) issued a Financial Institution Letter (FIL-7-2025) that provides new guidance for FDIC-supervised institutions engaging or seeking to engage in crypto-related activities. The new guidance, which rescinds FIL-16-2022, clarifies that FDIC-supervised institutions may engage in permissible crypto-related activities without receiving prior FDIC approval. The guidance affirms that FDIC-supervised institutions may engage in permissible activities, including activities involving new and emerging technologies such as crypto-assets and digital assets, provided that they adequately manage the associated risks. (Read more.)
How will the banking regulators' decision to rescind the 2023 Community Reinvestment Act rule affect financial institutions, their members, and customers? What downstream repercussions will Trump's executive order to phase out paper-based payments by September 30, 2025, have on the future of checks? Does your financial institution currently engage in crypto-related activities or plan to in the near future?
Check back soon for our next issue, which will highlight the industry's most pressing and essential developments. In the meantime, visit us online at Innovating Payments.
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AUTHOR: Joe Casali, AAP, AFPP, APRP
Executive Vice President
As the EVP of Payments Innovation for NEACH, Joe focuses on exploring innovative solutions and technologies that will help position members for success, both now and in the future. Connect with Joe to read more of his blogs, articles, and posts.
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