Capstone LLC, a leading policy analysis and investment research firm, has released its financial services sector preview for 2026, highlighting regulatory shifts and policy priorities expected to reshape banking, insurance, housing finance, and education markets.
Capstone anticipates the Trump administration will pursue dismantling the Consumer Financial Protection Bureau while advancing deregulatory rulemaking. As federal enforcement recedes, Democratic-led states are expected to intensify oversight, creating a fragmented regulatory landscape across consumer finance.
The firm expects prudential regulators to ease regulatory burdens for banks through a “capital neutral” Basel III Endgame proposal while introducing new stablecoin regulations that may pose competitive challenges for smaller institutions.
Housing policy will emerge as a major federal and state priority, with lawmakers likely reshaping Fannie Mae and Freddie Mac’s roles and pursuing supply-side reforms to address affordability. Algorithmic pricing tools in the rental and real estate markets continue to face scrutiny.
In insurance, the National Association of Insurance Commissioners will tighten scrutiny of investment strategies and AI applications, while state policymakers pursue affordability reforms amid catastrophe risk concerns.
Education markets face mixed prospects, with federal funding stability offset by state budget pressures affecting K-12 vendors and international enrollment policies creating headwinds for universities.
