As the **2024 election** looms, the **banking industry** finds itself on the brink of potential change, regardless of which party takes control of the **White House**. Experts predict that **regulatory shifts** will be incremental initially, but the aftermath of the election could see significant legal challenges to new and existing rules.

Regulatory Changes and Legal Challenges

The **financial sector** is bracing for a wave of legal challenges, as evidenced by **JPMorgan Chase’s threat of litigation** against the **Consumer Financial Protection Bureau (CFPB)**. Similarly, the **Financial Technology Association’s lawsuit** against the **CFPB’s interpretive rule** on **buy-now-pay-later services** highlights growing tensions.

Impact of the Elections on the Banking Sector

The **economic philosophy** of the incoming administration could profoundly influence regulation. A **Republican majority** in the Senate might accelerate regulatory nominations, impacting the pace and nature of **financial oversight**. However, if Congress remains closely divided, significant legislative changes appear unlikely.

Supreme Court Rulings and Their Implications

Recent **Supreme Court decisions** have reshaped the regulatory landscape. These rulings, such as **Loper Bright v. Raimondo**, which ended deference to federal agency expertise, could embolden banks to challenge regulators more frequently.

The Role of CFPB and Potential Changes

The **CFPB**, under Director **Rohit Chopra**, remains a focal point of regulatory activism. Should former President **Trump** return to office, Chopra’s tenure could end, leading to potential reversals of current policies. Conversely, a **Harris administration** could maintain the status quo, albeit with possible shifts in leadership.

Banking Industry’s Response

Amid these uncertainties, **industry leaders** are advised to stay agile and engaged with **trade associations**. Whether under a **Harris or Trump administration**, the industry must navigate a complex regulatory environment influenced by evolving political dynamics.

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