Tag:regulation

1
Vermont Enters a New Age of Virtual Currency Money Transmission
2
CFPB Aims to End the Use of Medical Debt Information in Making Credit Determinations and in Credit Reporting
3
South Carolina Becomes the Fifth State to Enact An Earned Wage Access Law
4
In an About-Face, Pennsylvania to Regulate Virtual Currency as Money
5
Australia: BNPL Regulation Takes Another Step Forward
6
CFPB Wants to Oversee Large Nonbank Digital Payment Providers
7
CFTC Files Complaint Against Voyager’s Former CEO Stephen Ehrlich Alleging Fraud and Registration Failures
8
CFPB Raises Alarms Without Providing All the Facts
9
CFTC Chair Asserts Jurisdiction Over Fiat-Based Stablecoins
10
In a Rare Decision On Abandoned Property Law, The US Supreme Court Rules Against Delaware

Vermont Enters a New Age of Virtual Currency Money Transmission

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.

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

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.

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South Carolina Becomes the Fifth State to Enact An Earned Wage Access Law

By: John ReVeal and Jennifer Crowder

On May 21, the South Carolina Governor signed a Bill to enact the Earned Wage Access Services Act (the Act), joining Kansas, Missouri, Nevada and Wisconsin as the fifth state to codify earned wage access (EWA) services. Many other states are considering such legislation, while a few others have so far relied on regulatory opinions or guidance.

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In an About-Face, Pennsylvania to Regulate Virtual Currency as Money

By: Jeremy McLaughlin and Joshua Durham

Based on a new statement of policy (“Statement”) issued on 20 April 2024 by Pennsylvania’s Department of Banking and Securities (“Department”), effective 15 October 2024, the Department will include virtual currency in the definition of “money” for purposes of the state’s money transmission law (“Law”). Previously, in January 2019, the Department had issued guidance concluding the opposite, that only fiat currency constituted “money” under the Law. The Department’s about-face follows other state regulators that have increasingly concluded that virtual currency is regulated under their state money transmission laws.

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Australia: BNPL Regulation Takes Another Step Forward

By: Dan Knight and Ben Kneebush

On 12 March 2024, the Australian Treasury released for consultation an exposure draft legislative package that proposes to amend the current regulatory framework to regulate low cost credit contracts (LCCCs), including Buy Now Pay Later (BNPL) arrangements and other types of credit contracts. These changes are designed to be flexible, adaptable and proportionate to the risk of consumer harm.

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CFPB Wants to Oversee Large Nonbank Digital Payment Providers

By Jeremy McLaughlin, Andrew Hinkes, and Josh Durham

Yesterday the Consumer Financial Protection Bureau (CFPB) issued a Notice of Proposed Rulemaking (NPRM) that, according to the agency, aims to “crack down on [fintech] regulatory arbitrage by ensuring large technology firms and other nonbank payment providers are subjected to appropriate oversight.”

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CFTC Files Complaint Against Voyager’s Former CEO Stephen Ehrlich Alleging Fraud and Registration Failures

By Cliff Histed, Cheryl Isaac, Eden Rohrer, and Josh Durham

On 12 October, the Commodity Futures Trading Commission (CFTC) filed a complaint against Stephen Ehrlich, the former CEO of the now-defunct cryptocurrency platform, Voyager Digital (Voyager), in the US District Court for the Southern District of New York. In its 55-page complaint, the CFTC asserts both fraud and registration failures by Ehrlich in connection with the Voyager platform and Voyager’s operation of an unregistered commodity pool.

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CFPB Raises Alarms Without Providing All the Facts

By Judie Rinearson and Jeremy McLaughlin

The Consumer Financial Protection Bureau’s (CFPB) recent Consumer Alert was certainly well intentioned. Many consumers (including the authors) who hold funds in payment apps (such as Venmo and Paypal) should be made aware that the funds are usually NOT held in an FDIC-insured bank.  But that doesn’t mean the funds are necessarily unprotected.

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CFTC Chair Asserts Jurisdiction Over Fiat-Based Stablecoins

By Cheryl L. Isaac and Maxwell J. Black

Last week, Commodity Futures Trading Commission (“CFTC”) Chair Rostin Behnam asserted that fiat-based stablecoins (such as USD Coin (USDC), Tether (USDT), and Binance USD (BUSD), all of which are pegged to an underlying fiat currency) should be considered as commodities, subject to the CFTC’s enforcement jurisdiction. 

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In a Rare Decision On Abandoned Property Law, The US Supreme Court Rules Against Delaware

By Judie Rinearson, Jennifer Crowder, and Jeremy McLaughlin

On February 28, 2023, the US Supreme Court issued its decision in the abandoned property lawsuit, Delaware v. Pennsylvania (see https://www.supremecourt.gov/opinions/22pdf/145orig_kjfl.pdf)

The question addressed by the Court focused on which state was entitled to collect unclaimed property, which arose from  two financial products sold by banks on behalf of Moneygram: Agent Checks and Teller’s Checks (collectively, the “Checks”).

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