Author - Felix Charlesworth

1
FATF report to the G20 on stablecoins
2
New EU digital finance rules by the end of 2020
3
The OCC’S ANPR on Digital Banking: Is this a Harbinger for Digital and Open Banking in the US?
4
OCC Issues Final Rule to Fix Madden
5
ECB reflections around central bank digital currencies
6
FSB consults on cyber-attack response and recovery
7
The FDIC’s Recent Brokered Deposit Rulemaking Might Provide Relief to the Prepaid Industry
8
UK JURISDICTION TASKFORCE STATEMENT ON CRYPTO ASSETS AND SMART CONTRACTS – A “WATERSHED MOMENT”
9
To List or Not to List? NYDFS Seeks Comment on Proposed Rules Authorizing Bitlicensees to Self-Certify Cryptocurrency Listings
10
US Consumer Financial Protection Bureau Seeking Comments on Proposed Remittance Rule Revisions

FATF report to the G20 on stablecoins

By Giovanni Campi

Stablecoins have attracted much regulatory attention lately. The G7 working group on stablecoins, the International Organization of Securities Commissions, the Financial Stability Board (FSB) and the European Commission are among the international institutions pressing for global stablecoins regulation. The overarching regulatory problems they all identify are:

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New EU digital finance rules by the end of 2020

By Giovanni Campi

In a recent address on digital finance in the context of the European Commission’s Digital Finance Outreach, European Commission Executive Vice-President Valdis Dombrovskis, shared some of the Commission’s thinking on technological innovation and digital finance.

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The OCC’S ANPR on Digital Banking: Is this a Harbinger for Digital and Open Banking in the US?

By Judie Rinearson, John ReVeal and Stan Ragalevsky

The office of the Comptroller of the Currency (OCC) issued an Advance Notice of Proposed Rulemaking (ANPR) on June 3, 2020, focusing on digital banking activities. Typically such ANPRs are a precursor to new federal regulation; following collection of data from the industry and other interested parties, the OCC may propose new regulations by issuing a Notice of Proposed Rulemaking within 6-12 months.  Responses to the ANPR are due on August 3, 2020.

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OCC Issues Final Rule to Fix Madden

John ReVeal and Judie Rinearson

On May 29, 2020, the Office of the Comptroller of the Currency (“OCC”) issued a final rule (https://www.occ.gov/news-issuances/federal-register/2020/nr-occ-2020-71a.pdf) to clarify that, when a federal or state-chartered savings association transfers a loan portfolio,  interest permissible on the loans before the transfer continues to be permissible after the transfer.  In this way, the OCC hopes to resolve the uncertainty created by the Madden v. Midland Funding, LLC decision (“Madden”). 

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ECB reflections around central bank digital currencies

By Giovanni Campi and Sofia Karagianni

The digitalization of finance is accelerating during the COVID-19 outbreak. Even before the pandemic, FinTechs and BigTechs had begun to change market dynamics by offering new forms of money and new means of payment. Central banks are also looking into the future of money and payments, and at the potential issuance of digital currencies.

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FSB consults on cyber-attack response and recovery

By Giovanni Campi and Sofia Karagianni

The Financial Stability Board (FSB) issued a consultation on a toolkit of measures designed to help ensure firms and regulators are well prepared to tackle cyber incidents. This consultation is part of the work initiated in 2017 following the launch of the FSB report gathering financial sector cybersecurity regulations, guidance and supervisory practices from several jurisdictions. The consultation is expected to lead to the submission of the toolkit to the G20 in October 2020.

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The FDIC’s Recent Brokered Deposit Rulemaking Might Provide Relief to the Prepaid Industry

By Judie Rinearson and John ReVeal

On December 12, 2019, the Federal Deposit Insurance Corporation (“FDIC”) released a Notice of Proposed Rulemaking (“NPR”) to amend the brokered deposit regulation.  While the proposed regulation will not eliminate the restrictions or remove all burdens from those institutions that accept brokered deposits, the NPR indicates that the FDIC has recognized that changes in technology call for changes in regulation.  As a result, banks working with innovative prepaid payments companies to provide financial services might get some brokered deposit relief.

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UK JURISDICTION TASKFORCE STATEMENT ON CRYPTO ASSETS AND SMART CONTRACTS – A “WATERSHED MOMENT”

By Judith Rinearson and Philip Morgan

On November 18, 2019, Geoffrey Vos, Chancellor of the UK High Court, announced the launch of a “Legal Statement on Crypto Assets and Smart Contracts,” which he described as a “watershed moment” for English Law.  The statement, which can be found here, brings new clarity to the likely status of both smart contracts and cryptocurrencies under English law. 

A committee of experts has prepared the statement and, although technically it carries no binding legal authority, it is likely to be regarded as the most authoritative position available until the matters it covers are dealt with specifically by the English courts or by revised legislation.

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To List or Not to List? NYDFS Seeks Comment on Proposed Rules Authorizing Bitlicensees to Self-Certify Cryptocurrency Listings

Daniel S. Cohen and Jeremy M. McLaughlin

On December 11, 2019, the New York Department of Financial Services (“NYDFS”) published “Proposed Guidance Regarding Adoption or Listing of Virtual Currencies” (“Proposal”). The Proposal would establish a framework to allow “regulated virtual currency licensees” and entities exempt from licensure, such as trust companies, to offer or incorporate into their services cryptocurrencies that are:

  1. pre-approved by NYDFS; or
  2. certified by the licensee as being compliant with the licensee’s NYDFS-approved listing criteria.

The Proposal is intended to “enhance efficiency” and enable licensees to “offer and use new coins in a timely fashion”.

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US Consumer Financial Protection Bureau Seeking Comments on Proposed Remittance Rule Revisions

Jeremy M. McLaughlin and Daniel S. Cohen

On December 3, the United States Consumer Financial Protection Bureau (“CFPB”) published a notice of proposed rulemaking to revise the Remittance Rule (“Proposed Rule”) and is accepting comments until January 21, 2020.  The proposal follows the CFPB’s April 2019 request for information on the Remittance Rule (see here for our previous discussion).  The key provisions of the Proposed Rule address two aspects of the Remittance Rule: (1) the Rule’s applicability to a company that executes 100 or more remittances per year in the normal course of business, and (2) the Rule’s allowance for insured banks and credit unions to disclose estimates, rather than exact figures, under certain circumstances. This latter allowance is set to expire on July 21, 2020.

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