May 2026 Public Policy Update

Reconciliation. It was all the rage on Capitol Hill last summer, via the "One Big Beautiful Bill Act" (OBBBA), and it's back for round two. Reconciliation is a congressional procedure that allows a legislative package related to spending and revenue, among other things, to bypass the Senate filibuster and be passed with a simple majority. While the OBBBA covered all things tax-related, which you can read about here, the current reconciliation framework includes $72 billion for immigration-related matters. President Trump has also requested $1 billion to fund the White House ballroom, which the Senate parliamentarian rejected as "not germane" to the reconciliation process. The reconciliation package advanced to the Senate floor on Wednesday for a vote as early as this week.

Last week, a CFP Board-endorsed bill on combating financial fraud moved forward. The Guarding Unprotected Aging Retirees from Deception (GUARD) Act, introduced by Reps. Zach Nunn (R-IA), Josh Gottheimer (D-NJ) and Scott Fitzgerald (R-WI) unanimously advanced out of the House Financial Services Committee. The legislation focuses on strengthening state and local law enforcement's ability to investigate financial fraud and "pig butchering" scams targeting retirees, and expanding access to federal grant funding for fraud investigations. CFP Board is working with Congress to defend against widespread financial fraud and scams and protect Americans' hard-earned dollars.

On the Senate side last week, the Senate Banking Committee advanced the Clarity Act, the crypto market structure bill, on a bipartisan vote (15-9) with Sens. Ruben Gallego (D-AZ) and Angela Alsobrooks (D-MD) joining the committee's Republicans. During the markup, lawmakers examined proposals to delineate regulatory authority among the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC) and banking regulators, while also considering requirements for custody, disclosures and stablecoin reserves. CFP Board continues to monitor these developments closely.

Meanwhile, over the past month, CFP Board has been in overdrive submitting comment letters and issuing statements to address priorities coming from the White House and other issues of importance to the financial services ecosystem. Below are highlights of that work. Go to CFP.net/news to keep up with the latest Public Policy Updates.

CFP Board Supports Independent Contractors

On April 28, 2026, CFP Board submitted a comment letter to the U.S. Department of Labor supporting efforts to clarify rules for classifying workers as employees or independent contractors under federal labor laws. CFP Board emphasized that many CFP® professionals operate as independent business owners who manage client relationships, make independent business decisions and assume financial risk. It also noted that compliance-related oversight by firms should not, by itself, determine employment status and highlighted that flexible business models support entrepreneurship and client choice in financial planning. Read the comment letter here.

Statement on Executive Order on Retirement

CFP Board also issued a statement on the President's Executive Order on retirement. The Executive Order, issued on April 30, 2026, directed the Treasury Department to implement a plan to expand retirement plan access for workers without employer-sponsored coverage, including the development of an online platform, TrumpIRA.gov, to be launched by January 1, 2027. The Executive Order promotes low-cost, transparent IRA options and directs consideration of allowing eligible workers to receive the SECURE 2.0 Saver's Match.

In its statement, CFP Board welcomed the administration's focus on improving retirement security for Americans and highlighted its continued support for expanding access to competent, ethical financial planning as a means to help Americans achieve long-term financial security. CFP Board is reviewing the Executive Order and looks forward to further engagement with the administration on this.

CFP Board Ready to Help Families Navigate New 'Trump Accounts'

On May 8, 2026, CFP Board sent a comment letter to the Department of the Treasury and the IRS supporting the goals of "Trump Accounts" under Section 530A of the Internal Revenue Code, which aim to expand wealth-building opportunities and promote broader participation in an "ownership economy." However, CFP Board urged regulators to clarify key implementation details, including eligible investment options, fee structures and contribution rules, and whether financial professionals providing assistance will be held to a fiduciary standard.

CFP Board also called for development of a consumer-focused toolkit with plain-language educational materials, sample disclosures, and FAQs to support effective implementation and public understanding of the program. To read the letter, please click here.

CFP Board Calls on FINRA to Address Unpaid Arbitration Awards

On May 1, 2026, CFP Board weighed in on FINRA's Regulatory Notice 26-06 on modernizing arbitration rules and processes. CFP Board emphasized the need to address unpaid arbitration awards, noting that approximately one in four investor awards goes uncollected and about 37 cents of every dollar awarded is not paid, and urged FINRA to consider solutions such as insurance or a dedicated fund. The comment letter also supported preserving existing safeguards around motions to dismiss and strengthening FINRA's Arbitration Awards Online database to improve transparency and reduce information asymmetries in arbitration outcomes. To read the full letter, please click here.

CFP Board Calls on NAIC to Develop New Model Regulation for Annuities That Offers Real Consumer Protections

On May 11, 2026, CFP Board submitted a comment letter to the National Association of Insurance Commissioners' (NAIC) Annuity Suitability Working Group on implementation of the Suitability in Annuity Transactions Model Regulation (#275). In a comparison guide evaluating the regulation against CFP Board's Code of Ethics and Standards of Conduct, CFP Board argued that the model falls short of meaningful consumer protections because it does not impose a fiduciary duty on insurance producers or require management of conflicts related to annuity sales compensation. CFP Board urged NAIC to develop a new model regulation grounded in stronger fiduciary standards. Read the letter here.

NASAA Adopts CFP Board Recommendations for Model Rule Amendments

We close this month's update with a clear example of CFP Board advocacy in action.

CFP Board welcomed the North American Securities Administrators Association's (NASAA) recent adoption of amendments to four model rules governing investment adviser advertising, an outcome that reflects recommendations CFP Board advanced in a joint comment letter with the Financial Planning Association® (FPA®) and the National Association of Personal Financial Advisors (NAPFA) on August 28, 2025. In that letter, the organizations called on NASAA to better align its state model rules with the SEC's Marketing Rule to promote regulatory consistency, modernize compliance standards, expand marketing opportunities for state-registered investment advisers and maintain important investor protections. NASAA's action demonstrates the value of CFP Board's sustained engagement on regulatory issues affecting the profession. To read the August 28, 2025, letter, please click here.