Daily Financial Regulation Update -- Tuesday, August 25, 2026

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Major Developments

US Department of the Treasury

Treasury Launches Campaign Against Iranian Regime

August 24, 2026

The Department of the Treasury has begun “Operation Economic Outcast,” a whole-of-government economic campaign against the Islamic Republic of Iran and its enablers designed to end the current conflict. Treasury expanded the categories of Iran-related conduct that may be subject to secondary sanctions in the future, making it easier to take action against those facilitating the regime. Treasury has issued determinations against five critical sectors that the Iranian regime uses to try to prop up its economy:

• Digital assets
• Technology
• Gold
• Aviation
• Shipping

 

The Office of Foreign Assets Control (OFAC) also sanctioned nearly 60 entities, individuals and vessels in multiple jurisdictions that enable the Iranian regime’s illicit nuclear and missile technology procurement, cyber operations and oil-revenue generation networks.

OFAC also suspended several general licenses that previously authorized certain remittance payments to Iran and Iranian access to the U.S. cultural and academic system.

Finally, OFAC issued additional guidance on the sanctions risks of conceding to Iranian demands related to shipping in the Strait of Hormuz. 

• Press Release
• Secretary Bessent Remarks

 

Federal Agencies

US Department of the Treasury

Treasury Announces the Quantum-Readiness Task Force 

August 24, 2026

The Department of the Treasury announced the launch of the Quantum-Readiness Task Force, following President Donald Trump’s Executive Order 14412 establishing guidelines to strengthen cryptographic protections for America’s sensitive data, critical infrastructure and digital economy. 

• Press Release

 

Federal Reserve Board

Working Paper: ‘Characterizing the Conditional Pricing Kernel: A New Approach’

August 24, 2026

The Federal Reserve Board published a working paper titled “Characterizing the Conditional Pricing Kernel: A New Approach.”

• Paper

 

Federal Reserve Bank of New York

SCE Labor Market Survey — July

August 24, 2026

The Federal Reserve Bank of New York released the SCE Labor Market Survey for July 2026.

• Survey

 

Bank Policy Institute

BPI, TCH Call for Clear Terms, Secondary-Market Safeguards in Stablecoin Customer ID Standards

August 21, 2026

The Bank Policy Institute and the Clearing House Association sent a comment letter indicating regulators should apply customer-identification requirements to stablecoin secondary market participants and clarify ambiguous terms to bolster safeguards across the payment stablecoin ecosystem.

• Comment Letter
• Press Release

 

Administration Changes

Appointments/Confirmation Hearings

U.S. Department of the Treasury – Scott Bessent (effective January 27, 2025)

Federal Reserve Board – Kevin Warsh (effective May 22, 2026)

• Vice Chair Phillip N. Jefferson (sworn in September 13, 2023)
• Vice Chair for Supervision Michelle W. Bowman (sworn in June 9, 2025)
• Governor Michael Barr (sworn in July 19, 2022)
• Governor Christopher J. Waller (sworn in December 18, 2020)
• Governor Lisa D. Cook (sworn in September 13, 2022)
• Governor Jerome H. Powell (sworn in June 16, 2014)

Federal Reserve Bank of New York – John C. Williams (effective June 18, 2018)

Federal Reserve Bank of Boston – Susan M. Collins (effective July 1, 2022)

Federal Deposit Insurance Corporation – Travis Hill (effective January 13, 2026)

• Vice Chairman Vacant
• Director Vacant
• Director Jonathan Gould (Comptroller of the Currency)
• Acting Director Mark Paoletta (Acting Director of Consumer Financial Protection Bureau)

Office of the Comptroller of the Currency – Jonathan Gould (effective July 15, 2025)

Securities and Exchange Commission – Paul Atkins (effective April 9, 2025)

Commodity Futures Trading Commission – Michael Selig (effective December 22, 2025)

Consumer Financial Protection Bureau – Mark Paoletta (Acting Director effective August 1, 2026); Nominee Brian Johnson (nominated June 10, 2026 – nomination hearing July 24, 2026)

National Credit Union Administration – Kyle Hauptman (Chairman effective January 20, 2025)

Small Business Administration – Kelly Loeffler (effective February 19, 2025)

U.S. Department of Housing and Urban Development – Scott Turner (effective February 5, 2025)

Federal Housing Finance Agency – William Pulte (effective March 13, 2025)

U.S. Department of Education – Linda McMahon (effective March 3, 2025)

Financial Crimes Enforcement Network – Andrea Gacki (effective July 13, 2023)

 

PH Client Alerts

Click here to read more from our Coronavirus series.

 

Legislation/Legislative Updates

Click here to view the full text of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), enacted March 27, 2020.

Click here to view the full text of the Paycheck Protection Program Increase Act of 2020, enacted April 24, 2020.

Click here to view the full text of the Paycheck Protection Program Flexibility Act of 2020, enacted June 5, 2020.

Click here to view the full text of theConsolidated Appropriations Act, 2021, enacted December 27, 2020.

Click here to view the full text of the American Rescue Plan of 2021, enacted March 11, 2021.

Click here to view the full text of the PPP Extension Act of 2021, enacted March 30, 2021.

Click here to view a running list of proposed legislation from the Senate Committee on Banking, Housing and Urban Affairs, Senate Committee on Small Business and Entrepreneurship, House Committee on Financial Services and House Committee on Small Business