Balancing the “regulatory stack:” 10 key regulatory challenges in 2026

December 4, 2025 – Organizations are facing the “regulatory stack” in 2026 as the regulatory landscape is being shaped by rapid technological innovation and evolving supervisory priorities according to the new KPMG US Ten Key Regulatory Challenges of 2026 report.  The report lays out how these pressures are leading to a recalibration of risk management and compliance.

"Change is occurring on many levels - policies, guidance, oversight - as regulators seek a return to foundational mandates,” said Laura Byerly, Managing Director, Regulatory Insights KPMG US. “This shift requires a balancing of regulatory expectations that combines both innovation and control, speed and resilience, and modernization and stability."

The report identifies 10 key regulatory challenges organizations will face in 2026:

1. Executing Mandates – A regulatory focus narrowed to core statutory authorities doesn't minimize expectations for compliance with existing laws and may exacerbate a growing regulatory divergence.
2. Adopting Disruptive Tech & AI - Federal and state regulators are adapting existing policies and risk frameworks to address the complexities of AI innovation with participation from the private sector.
3. Maintaining Cyber & Data Security – Increasingly sophisticated cyber threats require the application of advanced technologies, adaptive strategies, and skilled professionals to protect critical data and operations.
4. Mitigating Financial Crimes - The "modernization" of existing BSA/AML requirements is being shaped by a risk-based approach, new technologies, dynamic sanctions activity, and national security and foreign policy goals.
5. Averting Fraud & Scams - A new generation of rapidly evolving, AI-enhanced fraud and scams carried out at scale significantly raises the importance of effective risk management and reporting.
6. Protecting Fairness - “Fairness” laws continue in force with attention to disclosure clarity, "access" to banking, and the use of AI, even as the concept is being partially redefined by executive actions.
7. Ensuring Resiliency - There is a growing focus on organizations’ preparedness to withstand or recover from significant market stresses and disruptions that may impact both non-financial and financial risks.
8. Driving Capital Formation & Growth - Attention on capital-raising sources that promote economic growth and innovation is growing, including private credit, public markets, and the role of retail investors.
9. Expanding Digital Assets - Actions are underway to structure markets and develop regulatory frameworks that will facilitate and expand digital and other alternative asset offerings in the U.S.
10. Enhancing Parties & Workforce - Third-Party Risk Management remains a regulatory focus, highlighting oversight of the full lifecycle of third-party relationships, while the need for a skilled workforce is critical for both regulators and organizations.

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About Regulatory Insights 

KPMG Regulatory Insights is the recognized thought leader for timely insight and perspective on risk and regulatory developments. Regulatory Insights provides real-time and emerging supervisory, regulatory, and enforcement trends—from alerts to in-depth analysis. Learn more at Regulatory Insights.