July 2025 Public Policy Update
With the tax and spending bill behind us, Congress has been active in the days leading up to its month-long August recess. CFP Board’s public policy team continues to showcase — in an unusually hot, humid and stormy Washington, D.C. — the positive impacts CFP Board and CFP® professionals are having around the country.
Capitol Hill Update
After spending months negotiating the reconciliation package, Congress is now shifting its focus to government funding and other priorities for congressional leadership and the White House. Following the July 4 congressional recess, GOP leadership quickly turned to pass a rescissions package, which would codify $9.4 billion in funding cuts made by the Department of Government Efficiency (DOGE). This funding was originally appropriated by Congress when it passed its fiscal year (FY) 2025 funding legislation. Recently, the Senate voted 51 - 48 to cut funds to the Corporation for Public Broadcasting (which funds NPR and PBS) and programs within the U.S. Agency for International Development (USAID) and the U.S. State Department, including global health programs, international disaster assistance, and migration and refugee assistance. The House approved the package on July 18 with a vote of 216 - 213, sending it to President Trump for his signature.
Congress is lagging in its annual federal appropriations process, with respective committees having only passed two of their twelve funding bills. Congress must pass its annual appropriations bills by the end of FY 2025 (September 30) or pass a continuing resolution (CR) — a temporary stopgap measure — to avert a government shutdown. Given there are fewer than 30 legislative days until then, there is an increasing chance that a CR will be needed, which is likely to be complicated given the razor-thin margins in Congress.
Meanwhile, CFP Board continues to advocate for retirement security, tax incentives for financial planning and increased consumer protections, among other issues. On July 21, CFP Board submitted a statement for the record to the Senate Health, Education, Labor and Pension (HELP) Committee in connection with its hearing on benefits for independent workers, emphasizing the importance of retirement security for all. The letter emphasized that the road to financial wellness does not simply end with access to a retirement plan, though, and urged Congress to restore and expand tax incentives for financial advice and financial planning.
CFP Board also submitted a statement for the record for a June 17 Senate Judiciary Committee hearing on “Scammers Exposed: Protecting Older Americans from Transnational Crime Networks.” The letter applauded the committee for holding the hearing and emphasizing its commitment to safeguarding older Americans and other vulnerable adults from financial exploitation. The letter also notes that CFP Board is committed to a comprehensive approach, which includes financial education, financial planning and guidance on what to do when one identifies any illicit behavior. We also touted that financial professionals — like CFP® certificants — are uniquely positioned to recognize, prevent and report fraud. To read the full letter, please click here.
Continued Focus on Crypto Assets
“Crypto Week” ended with President Trump signing the GENIUS Act, which establishes the first comprehensive federal framework for cryptocurrency regulation, into law. GENIUS, which passed the House 308 - 122 and the Senate 68 - 30, focuses on stablecoins (digital tokens tied to the U.S. dollar) and requires that they be backed by liquid assets. The House also passed the Clarity Act (294 - 134), which would define when a cryptocurrency is a security or a commodity and clarify the Securities and Exchange Commission's (SEC) jurisdiction over the sector. The bill now advances to the Senate, where it faces a steeper challenge with some lawmakers concerned about the scope of the bill, conflicts of interest and power among agencies. The House also narrowly passed (219 - 210) the Anti-CBDC Surveillance State Act, which would prevent the Federal Reserve from issuing a central bank digital currency (CBDC).
The SEC continues to focus on crypto assets as well. On July 1, the SEC’s Division of Corporation Finance released a comprehensive statement outlining disclosure requirements for crypto asset exchange-traded products (ETPs). The SEC has launched a task force to draft new regulations and refocused its crypto enforcement team, deciding whether to stay or dismiss several existing high-profile enforcement cases. SEC Chairman Paul Atkins also reported that the SEC is weighing an “innovation exemption” from regulations for companies exploring blockchain-based securities.
Federal, State and SRO Regulatory News of Note
On July 14, CFP Board submitted a comment letter to the Financial Industry Regulatory Authority (FINRA) in response to FINRA’s Regulatory Notices on rule modernization. In the letter, CFP Board supported FINRA in its recognition of the challenges and opportunities presented by new technologies and their impact on rules and guidance, while also urging FINRA to prioritize investor protection as a key focus of any modernization efforts. To read the full letter, click here.
CFP Board also continues to provide input at the state level. On June 10, CFP Board, together with the Financial Planning Association® (FPA®), the National Association of Personal Financial Advisors (NAPFA) and XY Planning Network (XYPN) submitted a written statement to the Tennessee Department of Commerce and Insurance, Securities Division in response to proposed changes to the state's investment adviser regulations. The letter addresses the division’s current interpretation of its custody rule, which is contrary to SEC guidance and has resulted in unintended burdens for financial professionals operating in the Volunteer State. This departure from SEC guidance imposes unnecessary financial regulatory burdens on Tennessee-based CFP® professionals and their clients. In the letter, the four organizations respectfully urged the state to align its custody rule and any relevant interpretations with those of other states and long-standing SEC guidance. To read the full letter, click here.
CFP Board’s public policy staff continues to monitor and analyze additional actions of importance to CFP® professionals and their clients, including those designed to increase individual access to private equity. For example, the White House is reportedly working on an executive order to make private-market investments more accessible to 401(k) retirement plans. We will likely see guidance from the U.S. Department of Labor and the SEC for employers on incorporating private assets into these plans. Congress has also taken up this issue by looking to redefine the accredited investor definition.