Tag: FinTech

1
California Legislators Continue To Assess How To Regulate Digital Assets
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CFPB Issues Advisory Opinion Strictly Interpreting Permissible Purpose for Consumer Reports
3
Change Is Constant* and There’s a lot of Regulatory Change Happening in the UK – Impacting Fintechs and Crypto Asset companies.
4
Let Me In: Wyoming Special Purpose Bank Sues Fed for Access to Payments System
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The Future of Stable (Bank) Coins?: President’s Working Group on Financial Markets Urges Legislation Limiting Stablecoins to Insured Banks
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California Imposes Additional Requirements on Money Transmitters
7
Satoshi Goes to Washington : Senator Toomey Issues RFI to Inform Digital Asset Legislation
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The NFT Explosion – What lawyers need to know
9
The Next Wave of Fintech Investors: Banks!
10
Good News for Fintechs: Taiwan Announces Plans to Streamline Payments Regulations

CFPB Issues Advisory Opinion Strictly Interpreting Permissible Purpose for Consumer Reports

By Grant F. Butler

On July 12, 2022, the Consumer Financial Protection Bureau (“CFPB”) issued an advisory opinion that states its strict interpretation of the permissible purposes for which a consumer reporting agency may provide a consumer report and for which consumer report users may obtain consumer reports.  Section 604(a) of the Fair Credit Reporting Act (“FCRA”) identifies the “permissible purposes” for which a consumer reporting agency may furnish a consumer report. 

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Change Is Constant* and There’s a lot of Regulatory Change Happening in the UK – Impacting Fintechs and Crypto Asset companies.

By Kai Zhang

Critical third party regime

This is to address the concentration issue where financial services firms outsource key functions/services to a few large service providers (e.g. cloud service providers). HM Treasury will designate which third party service providers are considered “critical”. Then the relevant regulators will be given power to make rules supervising them with respect to certain “material services”. See policy statement of 8 June.

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Let Me In: Wyoming Special Purpose Bank Sues Fed for Access to Payments System

By Grant F. Butler, Andrew M. Hinkes, and Robert M. Tammero, Jr.

Custodia Bank (“Custodia”) filed a complaint against the Federal Reserve Board (“FRB”) and the Federal Reserve Bank of Kansas City (“FRBKC”) in Wyoming federal court alleging that the FRB and FRBKC are unlawfully refusing to act on Custodia’s application for a master account.  A Federal Reserve master account allows banks to directly access the Federal Reserve and utilize the Federal Reserve System’s payment, clearing and settlement services. 

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The Future of Stable (Bank) Coins?: President’s Working Group on Financial Markets Urges Legislation Limiting Stablecoins to Insured Banks

By Judith Rinearson, Jeremy M. McLaughlin, and Daniel S. Nuñez Cohen

On 1 November 2021, the President’s Working Group on Financial Markets (PWG), in conjunction with the Federal Deposit Insurance Corporation and the Comptroller of the Currency, issued a long-awaited joint “Report on Stablecoins” (Report). Per the press release (and a speech by Undersecretary of Treasury Nellie Liang), the Report is intended to “identify regulatory gaps related to “payment stablecoins” (defined as stablecoins that are designed to maintain a stable value and “therefore have potential to be used as widespread means of payment”), and to present recommendations for addressing those gaps.”

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California Imposes Additional Requirements on Money Transmitters

By Jeremy M. McLaughlin

Under a newly-enacted law, money transmitters licensed in California must comply with new customer service requirements starting on July 1, 2022. Under the requirements, a licensee must “prominently display on its internet website a toll-free telephone number through which a customer may contact the licensee for customer service issues and receive live customer assistance.” The line must be operative at least 10 hours a day, Monday through Friday. In addition, California law currently requires a money transmitter to provide a receipt for transactions. Under the new requirements, the receipt must also provide the telephone number through which the customer may contact the licensee for customer service issues.

Satoshi Goes to Washington : Senator Toomey Issues RFI to Inform Digital Asset Legislation

By Jeremy M. McLaughlin, Judith Rinearson, and Daniel S. Cohen

As we have noted in the past, federal regulation of the digital asset/cryptocurrency/DeFi community is evolving and there are many perspectives on what direction it should take. For instance, earlier this week, the House Democratic leadership and a group of moderate House Democrats agreed to a compromise that would prevent the House of Representatives from amending the Senate-passed “Infrastructure Investment and Jobs Act” (H.R. 3684), thereby preserving the bill’s provisions expanding the definition of “broker” under the Internal Revenue Code to apply to various digital asset market participants.

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The NFT Explosion – What lawyers need to know

First there were CryptoKitties. Then came Digital art, CryptoPunks and NBA tokens. But when Beeple’s digital art piece sold at Christie’s for $69 million, the mania truly  began.  And as with any wave of media mania, also came the groundswell of negative media and hand-wringing about NFTs.   Of course, NFTs are not all evil nor are they a panacea for artists and musicians. If properly issued and positioned, they can provide a win-win for both artists and collectors.

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The Next Wave of Fintech Investors: Banks!

By: Judie Rinearson

While global investment in fintechs has slowed, interest in fintech investments from the banking sector has actually increased. What’s particularly intriguing is that this is not coming just from the big banks (who have been involved in the fintech sector for years) but frequently many smaller banks are starting to recognize the opportunity presented by investing in the fintechs — especially those fintechs that the banks already work with. Boston partners, Stan Ragalevsky and Rob Tammero have analyzed this development, which looks to be a true win-win for both the banks and fintechs involved. Click here to read more.

Good News for Fintechs: Taiwan Announces Plans to Streamline Payments Regulations

By: Joseph Tseng

In an effort to promote the use of electronic payments and develop its fintech industries, Taiwan’s financial regulator has moved to combine the existing legal regime governing payment institutions and electronic money by proposing an amendment to the Act Governing Electronic Payment Institutions. The proposed amendment seeks both to cope with the disappearing line between physical cards, electronic stored-value cards and virtual, app-based services, while expanding the businesses that electronic payment institutions can do. Click here for more information.

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