As Washington enters another year marked by political gridlock and economic uncertainty, a few clear shifts in financial policy are standing out. Here are four themes to watch that are reshaping the public affairs landscape for financial services in 2026.
Four Forces Shaping Financial Policy
A “Light-Touch” Regulatory Environment: There’s been a lot of talk about deregulation, but the reality is more subtle. Federal regulators aren’t necessarily pulling back; but they are being more selective. Instead of expanding rules, they’re prioritizing clearer guidance and consistency, reducing friction points, and updating older regulations to better fit today’s markets.
Some agencies (like the CFPB) have essentially been sidelined, while others (like the SEC) still expect strong compliance and consumer protection – just with more flexibility and openness to tailored approaches. At the same time, the regulatory process has become more political. Big moves – like the Netflix–Warner Bros. deal – are getting attention all the way up to the White House. Companies need a strategy that accounts for that dynamic. In 2026, we expect to see CEOs and other key executives to engage even more closely with the White House, Cabinet members and other influential Administration figures to garner additional layers of approval for financial dealmaking and regulatory activity.
Banking Consolidation Is Back: After a quieter period during the Biden years, bank M&A is picking up fast, potentially entering the most active cycle in almost a decade. With regulatory red tape lessened, Banks are looking to scale, upgrade tech, expand customer bases, and hold their ground against digital-first competitors.
This year alone, we’ve seen major deals like Capital One–Discover, which created the country’s largest card issuer. Others potential deals like PNC–FirstBank and Fifth Third - Comerica, show how regional banks are moving to compete more aggressively with the Big Four, and we can expect this trend to continue into 2026.
Fintechs Aren’t Just Challengers Anymore — They Want Charters: With a friendlier regulatory environment, more fintechs are applying for bank charters to broaden their offerings and gain national reach. The OCC has seen a wave of applications from companies like Ripple, Circle, Stripe and more.
Others may pursue industrial loan company routes, similar to Nelnet and Square. Either way, the trend is clear: fintechs are moving closer to traditional banking status. Charters give them credibility and access, but also more scrutiny, a trend to watch headed into next year.
This raises big questions for Washington:
- What counts as a “bank” when services are increasingly software-driven?
- How should rules around capital, liquidity, and consumer protection apply?
- Where’s the line between innovation and regulatory arbitrage?
Crypto Has Gone Mainstream: After years of skepticism, Washington is increasingly treating crypto as part of the financial system. Consumer adoption is rising, and traditional firms are incorporating digital assets into their offerings.
The GENIUS Act was a major step toward stablecoin clarity. While the Senate continues to negotiate broader market structure rules, slowed in part by concerns around conflicts of interest and Trump family involvement, lawmakers are still actively working toward a deal. Once passed, the legislation is expected to open the door to greater institutional participation and give the U.S. a stronger position in digital assets globally.
The Bottom Line: Taken together, these trends show that financial policy is becoming more flexible, more cautious, and more political. Companies should think proactively about how to explain their business model and help policymakers understand the consumer and economic value they bring.
By Allison Nielsen, VP, Edelman Smithfield and Nick Sabin, Account Supervisor, Edelman Smithfield