The National Association of Industrial Bankers sued Colorado Attorney General Philip Weiser, challenging state banking regulations that the group claims interfere with federal lending laws. The dispute centers on whether Colorado can regulate certain industrial banking activities that cross state lines, with significant implications for the financial services industry.
The full appeals court will now reconsider the meaning of "loans made in such State" under Section 525 of DIDMCA, a critical phrase that determines when federal law preempts state banking regulations. The court asked parties to address six specific questions, including whether the phrase encompasses loans where "either the lender or the borrower is located in the opt-out state" and how regulatory guidance should inform the interpretation.
A three-judge panel previously ruled in November 2025, but the industrial bankers petitioned for en banc review. The court noted that "a majority of the non-recused active judges voted to rehear this matter en banc," indicating significant disagreement with the panel's decision. The scope of review is limited to preemption issues and will not reconsider the banks' standing under Ex parte Young.
The case could reshape the federal-state balance in banking regulation, particularly affecting industrial loan companies and credit providers that operate across state lines. Supplemental briefs are due within 30 days, with the court encouraging additional amicus participation from interested parties.