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A False Sense of Security in Banking Compliance For the past decade, federal banking regulators have initiated significantly fewer enforcement actions, creating an environment that might feel increasingly permissive. Yet even as enforcement activity has declined, regulatory agencies are fundamentally reshaping how they conduct examinations and assess bank performance. This apparent contradiction—fewer enforcement actions paired with structural changes to supervisory framework

Lisa Arquette is the newest addition to Klaros’ Senior Advisor Class of 2026, and I couldn’t be happier to welcome her. Many thanks to Sepideh Rowland for connecting us. Lisa’s background and expertise further enhance the Klaros team’s deep understanding of FDIC supervisory policy and practices. . Lisa was most recently Deputy Director of Operational Risk at the FDIC. In that role, she shaped national supervisory strategy, led interagency rulemaking, directed the team analyz

Congratulations to Upstart, which announced today it has received conditional approval for a national bank charter from the OCC!

Our first hire of Q3 is a new position for Klaros and one I’m really excited about: Jennifer Atala joins us today as Chief Artificial Intelligence Officer and Senior Director to advise Klaros and Klaros clients on AI solutions, including managing risk and developing artificial intelligence (AI) governance frameworks. Jennifer started out as a data scientist and tech innovation leader, with expertise spanning financial services, government service, and entrepreneurship – a uni

This is the first in a series of blog posts investigating the GENIUS Act’s insolvency provisions and offering considerations for those interested in issuing payment stablecoins. By Doug Landy & Todd Phillips Although all permitted payment stablecoin issuers (PPSIs) are regulated by the GENIUS Act, organizers’ choice of corporate charter carries significant consequences. Charter selection affects not only the activities a PPSI may undertake, but also how insolvency is addresse

Payment stablecoins pose unique challenges to the nation’s anti-money laundering (AML) and sanctions compliance regime. By design, blockchains allow issuers to track which wallets hold their stablecoins with a level of anonymity so as not to reveal the identities of those wallets’ owners. This dynamic has raised questions about how Permitted Payment Stablecoin Issuers (PPSIs) would comply with Bank Secrecy Act (BSA) requirements. Regulators have now proposed an answer. On Ju