Welcome to the July 2026 Innovating Payments Executive Summary.
In this issue, the Federal Reserve makes news with three major announcements. First, the Fed requested comment on a proposal to amend anti-money laundering requirements for banks. Second, it proposed requiring certain payment stablecoin issuers to maintain a customer identification program. Third, it released initial findings from its 2025 triennial payments study. In addition, Federal Reserve Financial Services reports FedNow® volume grew more than 80% quarter over quarter.
In more regulatory news, the Financial Crimes Enforcement Network (FinCEN) provided guidance for FIs to help facilitate broader information sharing. The updated guidance provides more clarity on what’s allowed under section 314(b) of the USA PATRIOT Act.
Meanwhile, back in early June, but after the June issue of NEACH’s Executive Summary was published, The Clearing House announced plans for a “bank-led, on-chain money initiative.”
In more big bank news, PYMNTS reports, citing a Wall Street Journal article, that some of the nation’s largest institutions have held preliminary discussions about acquiring a debit card network. Separately, Reuters reports the U.S. Justice Department has issued subpoenas to major banks, seeking to determine if they improperly closed customer accounts for political reasons.
This July, payments are really heating up, and NEACH’s 2026 Future of Payments Symposium, which will take place November 2-3, 2026, at Newport Harbor Island Resort in Newport, RI, can help you understand the latest goings-on.
Read on to learn more.
Top Headlines
Federal Reserve Board requests comment on a proposal to amend its requirements for banks to maintain anti-money laundering programs
In response to an April proposed rule from FinCEN, the Federal Deposit Insurance Corporation (FDIC), National Credit Union Administration (NCUA) and the Office of the Comptroller of the Currency (OCC), on July 7, the Federal Reserve launched a request for comment on a proposal to amend its requirements for banks to maintain anti-money laundering programs. Specifically, the proposal outlines an approach for banks to focus their anti-money laundering resources based on risk, with more attention given to higher-risk customers and activities.
Issued with the request for comment, Federal Reserve Governor Michael S. Barr dissented, citing concerns that the standard could weaken the Board's ability to enforce compliance. He objected to "the introduction of a new, undefined standard for issuing matters requiring attention and for enforcement actions."
The comment period closes 60 days after its publishing in the Federal Register.
Read the press release here. Explore the full Federal Register notice here.
Federal Reserve Board requests comment on proposal to require certain payment stablecoin issuers to maintain an effective customer identification program
In a step toward aligning requirements for fintechs with those of financial institutions, the Board of Governors of the Federal Reserve System, along with FinCEN, the OCC, the FDIC, and the NCUA, issued a proposal requiring stablecoin issuers to maintain an effective customer identification program. The Fed says the new requirements would be comparable to existing customer identification standards for banks and credit unions.
Comments are due on August 21, 2026.
Read the press release here. Find the Federal Register publishing here.
Federal Reserve issues initial findings from its 2025 triennial payments study
The Federal Reserve revealed key findings from its 2025 triennial payments study, citing significant growth in noncash payments overall, with cards leading payment volume and ACH driving transaction value. Details include the following highlights:
- Noncash payments made by consumers and businesses increased to 236.6 billion in 2024. The number of noncash payments has tripled since 2000.
- Overall, cards account for more than three-quarters of payments. Debit cards remain the top payment method, but credit card payments grew faster than debit card for the first time in nearly a decade.
- ACH payments continue to account for the majority of non-cash value, reaching almost three quarters of total non-cash payments value for the first time.
- Check payments and ATM cash withdrawals continued to decline by both number and value.
Read the full press release here. Explore full details of the study here.
FedNow Marks Three Years, Volume Up 80% Quarter Over Quarter
Celebrating three years of service, FedNow currently boasts more than 1,800 participants, reaching more than 50% of all demand deposit accounts in the U.S., according to a new infographic from the Federal Reserve Financial Services. Digital Transactions also reports that seven of the 10 largest U.S. banks are participants, citing Nick Stanescu, executive vice president and chief FedNow executive.
In addition, FedNow has seen an upwards of 80% climb in volume quarter over quarter, demonstrating an increasing demand for instant payments.
See the full infographic here. For more detailed data, visit the Federal Reserve Financial Services site here.
FinCEN
FinCEN Issues Guidance to Help Financial Institutions Eliminate Fraud Through Information Sharing
New guidance from FinCEN, issued on June 12, clarifies what financial institutions can share under section 314(b) of the USA PATRIOT Act. Specifically, it emphasizes that financial institutions can share information with one another about activity involving:
- Suspected fraud
- Money laundering
- Terrorist financing
- Other specified unlawful activities
In addition, the guidance provides clarity on the type of information that can be shared, including:
- Video surveillance footage
- Cyber-related data, such as IP addresses
- Fraud indicators like newly added payees followed by large transfers, multiple accounts with the same or similar identifying information, and login activity from geographically distant places
Find out more in the full guidance here. Read the press release for more background information here.
The Clearing House
Major Financial Institutions Unveil Bank-Led On-Chain Money Initiative
On June 5, The Clearing House (TCH) announced plans for a bank-led on-chain money initiative that will marry blockchain functionality and traditional payment rails through tokenized deposits.
Specifically, the press release pointed out that TCH owner banks structured the initiative to deliver:
- On-chain clearing and settlement of tokenized deposits between banks within the established banking framework, supporting automated workflows, richer transaction data, and 24/7 settlement
- A connectivity layer linking blockchain-based activity with established fiat rails, such as the RTP® and CHIPS® networks, to facilitate movement between digital and traditional commercial bank money
“The banking industry has long provided the trusted infrastructure that underpins the movement of money throughout the global economy. The Clearing House is proud to help banks scale on-chain money movement by extending the safety, resiliency, and settlement certainty of regulated bank payment rails,” said David Watson, President and Chief Executive Officer of The Clearing House in a statement.
The new solution will be available to all financial institutions in the U.S.
For more information, read the full press release here.
Industry News
Big Banks Eye Payments Deal That Could Rewire Debit Fees
Referring to a Wall Street Journal article as its source, PYMNTS reports that some of the nation’s largest banks are exploring an approach that would reshape the debit card landscape. Specifically, JPMorgan Chase, Bank of America, Wells Fargo, and PNC Financial Services Group have held preliminary discussions about acquiring a debit card network owned by Fiserv.
This move, which was emphasized as being in early consideration stages, would give big banks more control over interchange fees and associated caps.
To learn more, read the full article here. Read the Wall Street Journal article here (subscription required).
US Justice Department subpoenas major banks over alleged 'debanking,' source says
Reuters reports the U.S. Justice Department has issued subpoenas to major banks, seeking to determine if they improperly closed customer accounts for political reasons. Citing the Wall Street Journal, the article says the subpoenas were issued by the U.S. Attorney's Office in Washington, D.C. and requested lists of individuals who were allegedly "debanked," along with details explaining why their accounts were closed.
Read the Reuters article here. Read the Wall Street Journal article here (subscription required).
NEACH
As you can see by these headlines, regulatory pressures are placing greater strategic emphasis on payments. From ensuring compliance to safeguarding competitive advantage and capitalizing on emerging opportunities, you need insights from experts and peers. As your strategic partner, NEACH is here to help you navigate what’s next for your institution.
So, mark your calendars for 2026 Future of Payments Symposium, which will take place November 2-3, 2026, at Newport Harbor Island Resort in Newport, RI. The Future of Payments Symposium brings together strategic decision-makers to explore emerging opportunities, evolving risks, and the strategies that drive long-term success. This annual event offers high-level insights and peer connections that matter. Registration is now open, and we hope you can join us.
NEACH - New England Automated Clearing House Association is a neutral, member-focused advocate. Our role is to give you the intelligence, context, and connections you need to make informed strategic decisions. We bring together industry leaders, policymakers, and innovators so you can evaluate innovation through the lens of your institution’s mission and market strategy. For more information, visit neach.org.