A joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Bureau of Consumer Financial Protection relating to the withdrawal of the rule relating to "Consumer Financial Protection Circular 2022-02: Deceptive Representations Involving the FDIC's Name or Logo or Deposit Insurance".
- Bill Number
- S.J.Res. 175
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-04-13: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2026-04-20T19:13:30Z
AI-Generated Summary
Purpose
This joint resolution (S.J. Res. 175) uses the Congressional Review Act (CRA, a law allowing Congress to overturn certain federal agency rules) to block the Bureau of Consumer Financial Protection (CFPB) from withdrawing its 2022 guidance on deceptive practices involving the Federal Deposit Insurance Corporation (FDIC) name, logo, or deposit insurance claims.
Key Provisions
- Disapproval of CFPB Rule: Congress explicitly disapproves the CFPB's rule withdrawing "Consumer Financial Protection Circular 2022-02" (originally published June 14, 2022, at 87 Fed. Reg. 35866; withdrawal published May 12, 2025, at 90 Fed. Reg. 20084).
- No Force or Effect: The withdrawal rule is voided, preserving the original 2022 circular, which warns financial companies against misleading consumers by falsely implying FDIC insurance.
Significant Changes to Existing Law
- Reverses the CFPB's 2025 decision to pull back its own 2022 guidance.
- No new laws are created; it restores the status quo by nullifying an agency rollback under the CRA.
Potential Impacts
- Government Agencies: Limits CFPB's flexibility to rescind prior guidance; reinforces FDIC's role in protecting its branding.
- Citizens/Consumers: Maintains protections against scams where companies falsely claim FDIC-backed deposits, potentially reducing fraud risks.
- Financial Sector: Increases compliance burdens for non-bank lenders or fintech firms that might imply deposit insurance.
- No direct international relations impact.
Main Stakeholders Affected
- CFPB: Cannot withdraw the circular, affecting its regulatory priorities.
- FDIC: Benefits from continued enforcement support against misuse of its name/logo.
- Financial Institutions/Fintech Companies: Must adhere to the circular's warnings on deceptive advertising.
- Consumers: Gain ongoing safeguards from misleading deposit insurance claims.
Notable Legal, Constitutional, or Political Implications
- Legal: Demonstrates CRA's power to review and void agency actions on guidance documents (circulars are interpretive rules subject to CRA).
- Constitutional: Upholds Congress's oversight of executive agencies under Article I.
- Political: Introduced by Sen. Warren (D-MA) and referred to the Senate Banking Committee; signals partisan divides on consumer protection vs. regulatory relief (if passed, requires presidential signature or veto override).
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-04-13: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2026-04-13: Introduced in Senate
Bill Versions
- Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Bureau of Consumer Financial Protection relating to the withdrawal of the rule relating to Consumer Financial Protection Circular 2022–02: Deceptive Representations Involving the FDIC's Name or Logo or Deposit Insurance. — issued 2026-04-13 — PDF (2 pages)