FinTech and Blockchain Law Watch – At the Crossroads of Law, Innovation and Commerce

Crypto.com’s Mission to Seek Regulatory Clarity for Digital Assets

Oct 14 2024

By: Cheryl L. Isaac, Judith Rinearson, Eden L. Rohrer, and Joshua L. Durham

On 8 October, Crypto.com made two novel, strategic moves to seek regulatory clarity regarding the classification of digital assets. First, the digital asset exchange sued the SEC, claiming that the SEC exceeded its statutory authority with respect to its classification of digital assets as securities without any notice-and-comment rulemaking as required under the Administrative Procedure Act (APA). Second, Crypto.com’s affiliate that is a CFTC-registered derivatives exchange petitioned the SEC and CFTC to provide a joint interpretation on how its swap products should be governed by the agencies.

Cryptocurrency Industry Can Shape California’s New Licensing Regime

Oct 04 2024

By: Jeremy McLaughlin and Joshua Durham

On 2 October 2024, the California Department of Financial Protection and Innovation (DFPI), issued draft proposed rules to implement the state’s new cryptocurrency licensing regime, the Digital Financial Assets Law (DFAL). DFPI is seeking comments on the proposed rules and set a deadline of 18 November 2024.

Good News: California Amends and Delays Its Digital Financial Assets Law

Sep 30 2024

By: Jeremy M. McLaughlin and Joshua L. Durham

Good news for the cryptocurrency industry. On 29 September 2024, California Governor Gavin Newsom approved Assembly Bill 1934, which extends the time within which digital assets companies must obtain a license to engage in digital financial asset business activity under the Digital Financial Assets Law (DFAL). Entities now have until July 2026 to obtain licensure, which is a year later than originally planned.

Banking Regulators’ Growing Concerns over Bank-Fintech Partnerships

Aug 28 2024

By: Jeremy M. McLaughlin, Grant F. Butler, Andrew C. Glass, Gregory N. Blase, and Joshua L. Durham

The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Board), and the Federal Deposit Insurance Corporation (FDIC) have jointly issued a request for information (RFI) seeking input on the nature, risks, and implications of bank-fintech partnerships. Accompanying the RFI, the agencies issued a joint statement on banks’ arrangements with third parties to deliver bank deposit products and services (Joint Statement). We will be hosting a webinar on this topic on 10 September (register here), and comments to the RFI are due 30 September.

Vermont Enters a New Age of Virtual Currency Money Transmission

Aug 14 2024

By: Jeremy McLaughlin and Joshua Durham

Effective July 2024, Vermont rehauled its money transmission law, joining the other states (approximately half) that have enacted some or all of the Money Transmission Modernization Act (MTMA). In doing so, Vermont furthers a trend of states expanding their regulators’ purview over the virtual currency industry.

Warning: UK Makes Reimbursing Customers Tricked into Authorizing Payments Mandatory

Jul 29 2024

By: Kai Zhang and Judie Rinearson

Authorized push payment frauds (APP fraud) happen where one is tricked into sending money to a fraudster posing as a genuine payee. Currently some protection is provided to UK victims via a voluntary industry code. However, this has been considered insufficient. So now a new mandatory reimbursement regime is coming, from 7 October 2024.

Recent Supreme Court Decisions Could Significantly Impact the Payments Industry

Jul 02 2024

By: Jeremy McLaughlin, Greg Blase, Andrew Glass, and Josh Durham

The Supreme Court issued two decisions at the end of its term that will significantly alter how federal courts review challenges to federal regulations. The decisions could have a significant impact on the highly regulated payments industry.

The Long and Winding Road: Navigating Fintech and Crypto App Approvals by the Apple Store

Jun 20 2024

By: Andrew Hinkes and Judie Rinearson

Much has been written about the effort it takes to have a new app approved by the Apple App Store. With good reason, Apple’s strict approval process ensures quality and maintains the standards of its ecosystem. As Apple itself reports, in 2023 it “rejected more than 1.7 million app submissions for failing to meet the App Store’s stringent standards for privacy, security, and content.”¹ An article from Decode about the top reasons for an Apple rejection² included the usual tech-related problems: The app is low quality; there are broken links; lots of bugs and crashes; etc.

CFPB Aims to End the Use of Medical Debt Information in Making Credit Determinations and in Credit Reporting

Jun 19 2024

By: Andrew C. Glass, Gregory N. Blase, and Joshua L. Durham

On June 11, 2024, the Consumer Financial Protection Bureau (CFPB) published a Notice of Proposed Rulemaking (NPRM) to ban the inclusion of medical bills in consumer credit reports.

Australia: Crypto in the Courts

Jun 11 2024

By: Daniel Knight and Ben Kneebush

On 4 June 2024, the latest chapter in ASIC’s crypto-asset enforcement efforts unfolded with the Federal Court relieving Block Earner from liability to pay penalties in connection with providing unlicensed financial services (ASIC’s media release can be found here).