Hi Marketing Wranglers,

Welcome to the start of a new week. This week, we’re going to dig a little deeper into what’s been happening across the financial services industry from Coinbase’s legal win, to fininfluencers, to Big Tech’s banking ambitions.

💥 Coinbase vs. SEC: A Legal Battle Ends, But the Crypto Fight Lives On: What the SEC’s Dismissal of the Coinbase Lawsuit Means for Fintechs.
🔥 FinInfluncers & Financial Compliance: Navigating the Risks of Viral Advice
🏦 Big Tech’s Backdoor to Banking: The ILC Loophole & How it Will Change Marketing

Well, well, well… Coinbase just pulled off what many thought was impossible. After years of legal battles, millions in legal fees, and enough courtroom drama to rival a Suits marathon, the SEC is officially dropping its case against Coinbase—with zero fines and no changes to Coinbase’s business.

The SEC originally sued Coinbase in 2023, accusing them of operating as an unregistered securities exchange, broker, and clearing agency. The core issue? The SEC’s belief that many crypto tokens on Coinbase’s platform were securities—and Coinbase wasn’t buying it.

💣 Overreach: Coinbase argued the SEC was making up rules on the fly, bypassing Congress, and stifling the crypto industry.

⚖️ High Stakes for Crypto: Caving to the SEC’s demands would’ve forced Coinbase to delist multiple tokens, potentially crippling the U.S. crypto market and pushing innovation offshore.

🛡️ A Stand for the Industry: CEO Brian Armstrong took the long, expensive road to court, saying, “It was the right thing to do for our customers and the industry.” Read his Tweet on X.

The dismissal conveniently follows a shift in political winds. With Trump back in office and a pro-crypto SEC chair now leading the agency, Coinbase’s legal woes got a lifeline. Armstrong even credited the Trump administration for a regulatory reset, calling out the prior “activist” leadership under Gary Gensler.

Because crypto can’t catch a break, Bybit reported one of the largest hacks in history—an attacker drained $1.4 billion from an ETH cold wallet. (Don’t panic—Bybit says all user assets are still backed 1:1.)

Coinbase’s win and Trump’s “Crypto Presidency” might loosen the reins on crypto in the U.S., but security risks (and high-profile hacks) will keep regulators on their toes.

Read more on CNN.

Gen Z is turning to TikTok for more than dance trends—77% are seeking financial advice from influencers. The rise of FinInfluencers has made financial tips more accessible, but it’s also exposing young investors to serious risks, including IRS audits, scams, and significant financial losses.

For fintechs and financial services companies, influencer marketing presents both an opportunity and a compliance minefield. Partnering with finfluencers can bring in millions of views—but if influencers skirt regulations, your company could face the consequences. Read more on Fast Company.

These aren’t isolated incidents—they’re part of a growing regulatory focus on financial content shared through social media.

Gen Z isn’t abandoning social media for financial advice anytime soon—but the risks of misinformation and non-compliance are growing. Financial services companies need proactive strategies to leverage social platforms safely, without running afoul of regulators.

Need help streamlining your influencer compliance process? Warrant’s automation tools keep marketing compliant from the first draft to the final post.

The Trump administration is re-opening the door for Industrial Loan Companies (ILCs)—a move that could reshape the U.S. banking landscape and potentially usher in Big Tech players like Amazon and Meta into the financial services space.

ILCs allow non-financial corporations to offer banking services without full Federal Reserve oversight. Traditionally concentrated in Utah, these entities can issue loans and accept deposits while bypassing many of the strict regulations that traditional banks face.

Under the Biden administration, the FDIC largely stalled new ILC approvals, but the tide is turning. Travis Hill, the newly appointed Republican acting chair of the FDIC, has indicated a more open-minded approach to ILC charters, especially for fintechs and tech-forward companies eager to expand into financial services.

The Trump administration’s push to ease restrictions on Industrial Loan Companies (ILCs) is about more than just banking licenses—it’s about who gets to market financial products and how.

With Big Tech and fintechs potentially gaining easier access to the banking ecosystem, marketing compliance is about to get more complex, not less.

Here’s how the revival of ILCs could reshape financial marketing strategies and compliance considerations:

If companies like Amazon or Meta secure ILC charters expect an explosion of highly targeted, data-driven financial marketing. These platforms already have massive user bases and granular data on consumer behavior—pair that with banking products, and the ad potential is enormous.

But here’s the catch:

What Marketers Should Do:

Fintechs currently partnering with banks often rely on those banks’ compliance frameworks to help navigate complex advertising regulations. But if fintechs secure their own ILC charters, they’ll shoulder full responsibility for adhering to marketing compliance standards.

This means:

Pro Tip: Automated compliance platforms (like Warrant) can streamline pre-approvals and track all promotional materials for audits.

With more players—especially Big Tech—entering the market, expect a race for customer acquisition. Marketers will likely lean into:

But aggressive offers often trigger regulatory attention. Disclosures around APRs, fees, and eligibility criteria will need to be front and center.

With the rise of ILCs, expect regulatory bodies to reexamine how non-banks advertise financial products. Marketing teams should prepare for:

The ILC wave could create massive opportunities for fintechs and Big Tech to expand their reach—but it comes with a heightened compliance burden. Marketing teams will need to balance aggressive customer acquisition strategies with airtight regulatory safeguards.

Read more on The Banker.

I want to make this newsletter as valuable as possible for you. What regulatory trends are you concerned about? Hit reply and let me know—I read every response!

Austin Carroll, CEO of Warrant

At Warrant, we help your marketing and customer-facing teams stay compliant while streamlining approvals and recordkeeping. Book a call with us here.