There is a reason highly regulated financial markets and sectors have stood the test of time. Foreign exchange markets, for example, have existed for centuries, and one of the primary reasons investors continue to trust in them is that they are governed by clear, enforceable rules. Trust has always been the currency of financial institutions, and regulation is one of the most effective mechanisms for safeguarding it. 

These cyber regulations have been a part of that foundation for years, but as digital channels and threats expand, regulators are consistently tightening them to keep things in check. Heading into 2026, here are some cyber regulations and compliance requirements your organization needs to know about, as they will shape how financial institutions manage risk and compliance. 

Faster, Stricter Incident Reporting to Regulators and Markets

Regulatory bodies are currently cracking down on the incident-reporting timelines of organizations, including financial firms. On this front, we see agencies like the Securities and Exchange Commission (SEC) and other federal banking agencies imposing strict risk management measures.

The Securities and Exchange Commission

The SEC’s rules mandate quick disclosure of material incidents (within 4 business days) on Form 8-K, item 1.05. While the rule was introduced in 2023, it’s still being actively enforced, and financial institutions will need to continue upholding it in the coming years. 

Federal Banking Agencies 

In addition, we see federal banking agencies such as the OCC, FDIC, and Federal Reserve establishing their own equivalent rules. The agencies have established computer security incident notification requirements for banking organizations and their significant service providers. The notification period here is capped at 36 hours, as opposed to the SEC’s 4-day period. 

The rule also requires bank service providers to notify affected banking organization customers “as soon as possible” after such occurrences. These laws already exist, but will remain priorities for 2026. To maintain adequate internal compliance, ensure your organization’s incident playbook maps out these requirements and also follows them correctly. 

Cybersecurity and Infrastructure Security Agency (CISA)

Beyond the rules already in place, analysts also recommended keeping a close eye on the proposed requirements under the Cyber Incident Reporting for Critical Infrastructure Act (CIRCIA). According to CISA’s proposed rule, covered entities would include banks, credit unions, and other financial services firms. Essentially, any institution that owns or operates within the financial services sector. 

CIRCIA is designed to help regulators receive timely cyber incident reports, detect emerging attack patterns, and issue early warnings across critical infrastructure sectors. Under the proposal, financial institutions would be required to report cyber accidents within a 72-hour window, making rapid detection and response even more essential. 

Note that firms already obligated to report substantially similar cybersecurity breaches to other federal agencies (e.g., the SEC) may be exempt if CISA enters into an information-sharing agreement with these agencies, though this is still a work in progress. 

State-level Rules are Getting Tightened

State-level rules are tightening across the board, and it’s important to know what applies to your organization and current location. We’ve seen a wave of new data privacy laws take effect in states like Delaware, Iowa, Nebraska, and Maryland in 2025. Some of them include the Maryland Online Data Privacy Act (MODPA), Iowa Consumer Data Protection Act (ICDPA), and the Delaware Personal Data Privacy Act (DPDPA). If your organization is classified as a for-profit business that collects or processes personal information of state residents, it is likely subject to these new requirements. 

While most of these laws mirror existing regulatory frameworks, they also bring distinct nuances regarding consumer rights, enforcement penalties, and the scope of applicability. For businesses operating in multiple states, this means navigating a more complex, high-stakes risk and compliance environment that requires careful monitoring. 

Increasing Third-Party and Supply Chain Scrutiny

Regulators are also increasing their focus on third-party providers, not just individual firms. This means extra supervision of critical third-party providers (cloud, payment processors, core providers). Following these laws, organizations are expected to have a comprehensive understanding of supply-chain vulnerabilities, strong contract management, and regular security assessments of vendors. 

EU Regulations to Watch

Even for U.S.-based financial institutions, developments in the European Union often set global standards that can affect their operations. Two key EU regulations coming into effect highlight this trend. 

Digital Operational Resilience Act (DORA) 

The DORA Act was established for ICT (Information and Communication Technology) risk management across financial entities. Under this act, institutions are expected to maintain a centralized ICT risk framework, conduct regular testing to identify vulnerabilities, and strengthen third-party oversight. 

EU AI Act

The EU AI Act introduces strict obligations for organizations deploying high-risk AI systems. Financial institutions using AI for credit scoring, fraud detection, or customer service automation must have the right risk management system and follow these laws. Even if based outside the EU, firms offering services to EU clients or partnering with organizations based in the region will be required to comply with these standards. 

Staying Ahead of Regulatory Compliance 

Financial institutions are some of the most heavily regulated sectors, and it’s expected because the volume of assets, customer data, and critical services they manage demands strict oversight. As these laws evolve, it’s natural for internal compliance teams to feel overwhelmed. When such happens, partnering with the right professionals can make a difference. Rippleshot helps financial institutions strengthen their fraud-prevention and cybersecurity positioning with the right tools, insights, and support. Get in touch today to get the best strategy for your institution.