💡Big Tech’s Banking Play, Coinbase’s Court Win & FinInfluencer Fails | Marketing’s Most Wanted

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.

🚨 In This Week’s Issue

💥 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

💥 Coinbase vs. SEC: A Legal Battle Ends, But the Crypto Fight Lives On

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 Backstory:

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.

Why Coinbase Fought (and Won):

💣 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.

Politics in Play:

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.

What This Means for Fintech & Compliance Teams:

• Expect Lighter Crypto Regulations: The SEC’s retreat signals a possible softening on crypto enforcement—at least for now.

• Less Aggressive Oversight? Compliance teams at Crypto startups may face fewer hurdles, but the unpredictability of regulatory swings still looms.

• Global Implications: A win for Coinbase could embolden other crypto firms (and startups) to challenge regulators more aggressively, shaping how digital assets are governed worldwide.

But Wait—Bybit’s $1.4B Hack Happened the Same Day

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.

🔥 FinInfluncers & Financial Compliance: Navigating the Risks of Viral Advice

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.

The Numbers You Can’t Ignore:

• 77% of Gen Z and 61% of millennials use social media for financial advice.

• 37% of Gen Z has faced IRS issues after following bad online advice.

• 25% of Gen Z has been scammed by fake financial influencers.

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.

Real-World Fallout:

• Kim Kardashian paid a $1.26M SEC fine for promoting crypto without proper disclosure.

• Robinhood faced a $70M fine from FINRA due to misleading communications.

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

How Financial Brands Can Stay Compliant:

1. Prioritize Education Over Hard Sells: Content should empower consumers to make informed decisions, not pressure them into risky investments.

2. Vet Influencers Thoroughly: Ensure finfluencers understand the basics of financial compliance—or better yet, pair them with licensed professionals who can review content before it goes live.

3. Use Clear and Consistent Disclosures: Disclosures need to be explicit, easy to understand, and visually prominent. Showing it isn’t enough—say it.

4. Document Everything: Keep a record of approvals, edits, and communications. (Warrant can help here)

5. Monitor All Activity: FINRA requires firms to monitor not just published content but also audience interactions for potential complaints. Comments can also contain misinformation or non-compliant advice that puts your brand at risk.

The Big Takeaway:

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.

🏦 Big Tech’s Backdoor to Banking: The ILC Loophole

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.

What’s an ILC (and Why Should You Care)?

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.

What We’re Tracking:

• GM Financial withdrew its ILC application in 2023 but has already resubmitted under the new administration—signaling optimism that approvals will now be easier to secure.

• Rakuten, Japan’s e-commerce giant, has repeatedly tried (and failed) to obtain an ILC in the U.S. but may now have renewed hope.

• Fintechs looking to cut out middlemen banks could jump at the chance to gain FDIC-backed charters of their own.

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:

1. Big Tech’s Entry Means Bigger Ad Budgets—and More Scrutiny

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:

• Financial ads are heavily regulated. FINRA and the SEC have strict guidelines around disclosures, especially for lending and investment products.

• Cross-industry data usage is a legal minefield. Using social media engagement or e-commerce purchase history to market financial services could trigger regulatory red flags, particularly around data privacy.

What Marketers Should Do:

• Reassess data sources and segmentation strategies for any campaigns involving financial products.

• Double-check that all targeted ads meet FINRA’s fair and balanced communication requirements.

2. Fintechs May Gain Independence—but Lose Shielding

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:

• Every ad, post, and email promoting financial products will need rigorous compliance reviews.

• Influencer marketing—already a gray area—becomes riskier. Without a bank partner’s oversight, fintechs will be on the hook if a brand ambassador steps out of line.

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

3. Increased Competition Will Push Aggressive Campaigns

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

• Promotional offers (e.g., sign-up bonuses, cash back)

• Bundled services (e.g., retail + banking perks)

• Hyper-personalized financial products (driven by AI and big data)

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

4. The Fine Print Just Got Finer

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

• New guidelines on data usage in financial advertising

• Stricter rules around cross-promotion (e.g., advertising loans on e-commerce platforms)

• Enhanced disclosure requirements, especially in digital ads

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.

💬 Your Input Matters

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

Ready to put marketing compliance on autopilot?

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