January 2026 Public Policy Update

Welcome to Congress in 2026, which is already setting up to be highly active ahead of the midterm elections later this year. While we expect a busy legislative calendar, it remains to be seen how many items will cross the finish line amid ongoing national tensions. One thing is certain: There will be a flurry of regulatory activity now that key positions have been filled across federal agencies, including at the Department of Labor (DOL), the Securities and Exchange Commission (SEC), and Department of the Treasury, among others.

Notwithstanding this current and anticipated activity, the odds of a partial government shutdown are increasing as we approach the January 30 federal funding deadline. Senate Democrats have vowed to vote against the bill that funds the Department of Homeland Security (DHS) and Immigration and Customs Enforcement (ICE), leaving the remaining appropriations bills in limbo.

Empowering You to Raise Your Voice

We're excited to announce that CFP Board will be rolling out Voter Voice, our new grassroots advocacy software. Voter Voice will allow you to contact your elected officials on key issues with just a few clicks. This means that when a critical bill comes up for a vote or needs additional support, we will be able to mobilize CFP® professionals quickly to ensure your voice is heard on the issues that matter most.

The software is designed for ease, so there will be no activation required on your part. The first email you receive from us inviting you to help on an issue will contain a link that will lead to a platform with prewritten messages you can send to your elected officials, based upon your mailing address. You can customize the messages with any personal stories or details you wish to convey. Look for more information on this tool in the coming weeks.

Commissioner Vacancies at the SEC

SEC Commissioner Caroline Crenshaw left the SEC on January 2, after the Senate Banking Committee declined to advance her nomination for a second term. This leaves the SEC currently operating without a Democratic Commissioner, with a 3-0 Republican majority among Chair Paul Atkins and Commissioners Hester Peirce and Mark Uyeda. While the agency is designed for five bipartisan Commissioners, there are currently no nominations to fill the vacancies. Relatedly, the House Financial Services Committee will hold a hearing entitled "A New Day at the SEC: Restoring Accountability, Due Process, and Public Confidence " on February 4.

The SEC has published several rule proposals, including proposed amendments to the definitions that determine which registered investment companies, registered investment advisers and business development companies qualify as "small entities" under the Regulatory Flexibility Act (RFA). The RFA allows the SEC to tailor its analyses to address the regulatory challenges faced by small entities. Under the proposal, the thresholds for small entities would be adjusted, including increasing the assets under management threshold for registered investment advisers from $25 million to $1 billion.

CFP Board Joins Coalition Urging Repeal of Tennessee's Professional Privilege Tax

CFP Board joined a coalition of leading trade and professional associations in sending a letter to Tennessee Governor Bill Lee, urging a phaseout of the state's annual $400 Professional Privilege Tax (PPT) that is imposed on financial professionals. To read the full letter, please click here.

Retirement Policy Reimagined

On January 7, 2026, CFP Board submitted a letter ahead of the House Education and Workforce Committee's Health, Employment, Labor and Pensions Subcommittee hearing, "Modernizing Retirement Policy for Today's Workforce." In the letter, CFP Board highlights its commitment to improving retirement security and the role CFP® professionals play in helping Americans plan for and thrive in retirement. To read CFP Board's letter for the record, please click here.

On January 13, the DOL submitted a proposed rule to the Office of Management and Budget (OMB) about the fiduciary process for including alternative assets in 401(k) plans. This comes as a result of President Trump's August 2025 executive order "Democratizing Access to Alternative Assets for 401(k) Investors." Once OMB approves the proposed rule, the DOL will publish it for public comment.

Crypto on Delay

The Senate Banking Committee was set to hold a monumental markup on digital asset market structure legislation. However, as opposition to the details in the draft legislation emerged, the markup was delayed. The Senate Agriculture Committee's markup of its version of crypto market structure legislation will be held on January 29. Why agriculture? In addition to potentially being regulated by the SEC, crypto assets deemed to be commodities will likely fall under the jurisdiction of the Senate Agriculture Committee, which oversees the Commodity Futures Trading Commission.

Capital Formation Heads to the Senate

At the end of last year, the House passed sweeping capital formation legislation, the Incentivizing New Ventures and Economic Strength Through Capital Formation Act (INVEST Act), which is a package of 22 bills, some of which CFP Board weighed in on previously. While some of the individual bills have support in the Senate, it remains to be seen whether there is majority support for the House package.

Protecting Seniors From Fraud and Scams

CFP Board continues to work to advance legislation that protects our most vulnerable community members from financial fraud and scams. We have endorsed various bills that would increase protections against fraud for seniors and others, such as the Financial Exploitation Protection Act, which would provide tools for firms to protect seniors from suspected fraud; the Senior Security Act, which would establish a Senior Investor Taskforce within the SEC; and the Tax Relief for Victims of Crimes, Scams and Disasters Act, which would allow victims of scams to deduct their losses.

We also applaud agencies and self-regulatory organizations that are seeking to increase these protections as well. Recently, the Financial Industry Regulatory Authority (FINRA) issued Regulatory Notice 26-02, requesting comment on proposed rule revisions to help member firms protect senior investors from financial exploitation. Specifically, FINRA proposes to allow member firms to use the term "emergency contact" instead of "trusted contact" and to provide additional flexibility for a customer to name such a person for use across all the customer's accounts at the member firm and to extend the maximum temporary hold period when fraud is suspected.