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Stripe is maneuvering its digital wallet, Link, to capitalize on agentic commerce by partnering with AI companies including Meta, xAI and Spear Street Technology. Meta added Link to its Muse personal agent, allowing the bot to complete payments for consumers, following integrations with xAI's Grok Bot and Instinct. Link, integrated with about 1 million merchants and 300 million global users, is designed to speed checkout and improve conversion. Analysts say consumer wallet connections are critical as AI agents increasingly shop for humans, and Stripe faces competition from PayPal, Apple and Google, which already have consumer ties. Stripe's reported $59 billion attempt to buy PayPal underscores the importance of the consumer side, according to Crone Consulting CEO Richard Crone.
The Conference of State Bank Supervisors (CSBS) released a voluntary framework for examiners of state-chartered banks to assess financial institutions' use of artificial intelligence. The framework includes a core examiner guide, a work program, a nonbank supplement, a tiering worksheet, and a source list. It proposes eight questions examiners should consider, such as whether a bank uses AI, how it touches customers, and whether sensitive data passes through AI. It also introduces a three-tier risk system, from low-risk internal use to high-risk consumer-facing applications with limited human review. The CSBS notes the framework can also help banks self-assess their AI programs and prepare for examinations. This follows April federal guidance that excluded AI, leaving state regulators to fill the gap for the nearly 80% of FDIC-insured institutions they supervise.
The Consumer Financial Protection Bureau has allocated nearly $9 million in additional funds, bringing the total to $55.2 million, to repay users of Yotta and Juno affected by the Synapse bankruptcy. However, with no clear timeline for disbursement, some consumers are turning to small-claims court. Kasey Greer won a default judgment against Evolve Bank & Trust and was paid $4,735.57, while others like Carolyn Ryan and Patty Gelbrich were unsuccessful. Attorney Patrick Spaulding Ryan, who wrote a guide to the process, says small-claims court is the best recovery option despite its unpredictability. The CFPB's contract with Rust Consulting has a potential end date of August 16, 2028.
The Senate on Tuesday blocked consideration of the Clarity Act, which aimed to establish a regulatory framework for digital assets like cryptocurrency, in a 50-49 vote. No Democrats supported the bill, and several Republicans, including Sens. Josh Hawley, Susan Collins, Jerry Moran, and Thom Tillis, voted against it. Tillis filed a motion to recommit, but the Senate is scheduled to leave Washington in early October and not return until after the November midterm elections, making a revival unlikely. The bill would have needed 60 votes to pass. Debate had centered on stablecoin yield and ethics provisions concerning President Donald Trump's crypto businesses. The failure means regulators, particularly the SEC and CFTC, will continue to shape digital asset rules, which some experts say are less stable than legislation. The outcome may also delay crypto business acquisitions and raises concerns about U.S. leadership in global crypto standards.
PNC CFO Rob Reilly said the bank would pass on an acquisition if it impeded its AI priorities, emphasizing the risk of distraction from AI's potential. Regions CEO John Turner said M&A could divert attention from its deposit system conversion set for 2027, and Citizens CEO Bruce Van Saun said his company doesn't want to get distracted while growing its private bank and executing its Reimagine the Bank initiative. The executives' comments come amid high expectations for bank M&A in 2026, but larger deals have been scarce. Industry experts and other bank leaders weighed in on the factors behind the lull and the outlook for consolidation.
Enova International has withdrawn its applications to the Federal Reserve and the Office of the Comptroller of the Currency to acquire Grasshopper Bancorp. CEO Steve Cunningham cited a lack of clear standards for nonbanks seeking to become banks, saying the process is susceptible to political pressure. The withdrawal follows letters from state attorneys general and senators urging regulators to deny the deal over concerns about state usury laws and predatory lending. Enova said its future growth does not depend on becoming a bank.
Nubank, the Brazilian neobank, launched US operations last week through a partner bank model with Kansas City-based Lead Bank, before receiving full approval for a US banking license. The move coincides with the debut of Nu Global, a multicurrency digital account supporting no-fee money movement across more than 35 countries. Nubank received conditional approval from the OCC in January for a national bank, projected for a 2027 rollout. The US launch includes a 3.5% APY account and a Mastercard-partnered credit card with 1.5% cash back. CEO David Vélez cited regulatory delays for accelerating the launch. The article notes cautionary tales of other neobanks and analyst Dylan Lerner's view that Nubank is targeting a window of opportunity in administrative policy.
The Treasury Department on Monday imposed additional sanctions on VTB Bank, Russia's second-largest lender, for allegedly establishing correspondent relationships with sanctioned Iranian banks. Treasury Secretary Scott Bessent said the action is part of efforts to disrupt support for Iran. VTB has been under U.S. sanctions since 2022 over Russia's invasion of Ukraine, and its CEO faces charges. The sanctions are part of 'Operation Economic Outcast,' which recently targeted banks in Dubai and Turkey.
SMBC is ramping up recruiting near Charlotte, North Carolina, to staff its second U.S. headquarters, targeting summer 2027 interns and analysts. The bank has committed to adding 2,000 jobs and investing $50.5 million in the area over the next six years. It currently has about 300 people in Charlotte and will move to 301 S. College St. next month. SMBC is hiring in phases, with about 80 hires since April and 90 open roles now, focusing on technology, cybersecurity, data, operations, and HR. It faces competition from Bank of America, Truist, JPMorgan Chase, and TD, but leverages its growth story and partnerships with local universities to attract talent.
Better Markets filed a lawsuit against the Federal Reserve Board and Vice Chair for Supervision Michelle Bowman, accusing them of turning the capital-requirements rulemaking into a 'charade' through secret meetings with bank CEOs. The suit alleges Bowman coached bank executives on how to shape their public comments to favor a predetermined outcome. Better Markets seeks to invalidate the rulemaking and require Bowman's recusal. The Fed and Bowman have 60 days to respond.