Client Alert
Today, the Tenth Circuit Court of Appeals issued an Order granting a motion for rehearing en banc by the entire Tenth Circuit. This relates to the challenge by three trade associations to the action of the Colorado legislature opting out of federal interest rate preemption applicable to state banks for loans made in Colorado.
Prior Appellate Decision Vacated
Previously, the federal district court sided with the trade associations and enjoined the opt out law from going into effect. However, in November of 2025, ruling upon an appeal by the State of Colorado, in a 2-1 decision, a panel of the Tenth Circuit reversed the lower court decision and remanded the case. However, the panel did not lift the preliminary injunction that had prevented the law from going into effect.
Today, the Order of the Tenth Circuit vacated the November 2025 panel decision, reopened the case, and will rehear the matter. The Order provided a briefing schedule and encouraged amicus participation.
This is encouraging news for the marketplace lending industry. However, this is not a final decision, and more
developments will follow.
