regulation – Page 2 – FinTech and Blockchain Law Watch

Federal Reserve Doubles Down on Oversight of Crypto Activities for Banks

Aug 18 2022

By Grant F. Butler, Jeremy McLaughlin, Anthony R.G. Nolan, and Judie Rinearson

The Federal Reserve Board (the “FRB”) issued Supervision and Regulation Letter 22-6 (“SR 22-6”), providing guidance for FRB-supervised banking organizations (referred to collectively herein as “FRB banks”) seeking to engage in activities related to cryptocurrency and other digital assets. The letter states that prior to engaging in crypto-asset-related activities, such FRB banks must ensure that their activities are “legally permissible” and determine whether any regulatory filings are required. SR 22-6 further states that FRB banks should notify the FRB prior to engaging in crypto-asset-related activities. Any FRB bank that is already engaged in crypto-asset-related activities should notify the FRB promptly regarding the engagement in such activities, if it has not already done so. The FRB also encourages state member banks to contact state regulators before engaging in any crypto-asset-related activity.

FDIC Warns Banks on Crypto-Related Deposit Insurance Customer Confusion

Aug 03 2022

By Grant F. Butler

On July 29, the FDIC issued an advisory to FDIC-insured financial institutions regarding deposit insurance and dealings with cryptocurrency companies. The FDIC also issued an accompanying fact sheet for consumers regarding FDIC deposit insurance and cryptocurrency companies.

Cryptocurrency Market Downturn and Australian Regulation Update

Jul 15 2022

By Daniel Knight and Kithmin Ranamukhaarachchi

In the wake of the drawn out cryptocurrency market downturn, increased regulation of the sector seems inevitable. With nearly one million Australians transacting in cryptocurrencies last year, there have been widespread calls to enact additional protections for retail investors.

Forthcoming New York Law Expands Protections For Credit Card Reward Points

Jul 14 2022

By Jeremy M. McLaughlin and Joshua Durham

Last year, on December 10, 2021, New York governor Kathy Hochul signed into law Senate Bill S133B, which is set to take effect on December 10, 2022. Among other things, it provides a 90-day grace period for the use of credit card reward points before an account is modified, cancelled, closed, or terminated.

Louisiana Proposes Administrative Rules for Virtual Currency Businesses

Jul 07 2022

By Jeremy M. McLaughlin and Christian A. Zazzali

The Louisiana Office for Financial Institutions (“OFI”) has proposed administrative rules governing the licensing process for virtual currency businesses. Louisiana’s Virtual Currency Business Act (the “Act”) became effective in August 2020 and granted OFI broad supervisory and enforcement powers. The Act also required OFI to promulgate rules regarding licensing. Roughly two years later, OFI has done so. Those wishing to submit written comments on the proposed rules may do so through 5:00 pm on July 10, 2022. It’s expected the rules will be adopted later this year.

UK Regulator Ready to Take on Visa/MasterCard Payment Networks

Jun 28 2022

By Judie Rinearson and Kai Zhang

The UK Payment System Regulator (“PSR”), which is becoming increasingly assertive, issued on 21 June 2022 two consultations taking a closer look at the Visa and Mastercard “schemes” in the UK.^[1] The PSR proposes two market reviews: one into how Visa and Mastercard set the interchange fees; the other into how Visa and Mastercard set their scheme and processing fees. The market reviews will be conducted after the consultations close on 2 August 2022.

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

Jun 10 2022

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.

10 Impactful Provisions of the Lummis-Gillibrand Bill

Jun 07 2022

By Andrew Hinkes, Eden Rohrer, and Judie Rinearson

The “Lummis-Gillibrand Responsible Financial Innovation Act,” announced this morning, lays out a bold agenda for legal reform across multiple regulatory regimes aimed at clarifying legal requirements for regulated entities to issue, trade, and provide services related to certain digital assets. Although a point by point summary of the 69 page bill is beyond the scope of this post, here’s a brief summary of 10 impactful provisions from the Bill:

California Soliciting Comments on Potential Regulation of Crypto Products and Services

Jun 02 2022

By Jeremy McLaughlin and Christian A. Zazzali

On May 4, 2022, California Governor Gavin Newsom issued an executive order on digital assets, which seeks sensible, transparent regulation through engagement with developers of digital asset-related products and services. For a detailed discussion on the executive order, see our prior blog here. In response, California’s financial regulator, the Department of Financial Protection and Innovation (DFPI), issued an invitation to submit comments on crypto-asset related products and services under the California Consumer Financial Protection Law (CCFPL). The deadline for submission is August 5, 2022.

California’s Executive Order Embraces Crypto

May 10 2022

By Jeremy McLaughlin and Christian A. Zazzali

On May 4, 2022, California Governor Gavin Newsom issued an executive order on digital assets largely echoing the positive sentiments of President Biden’s February executive order. The order looks to create transparent regulation around digital assets and drive innovation into the state. By directing state agencies to engage in a cooperative discussion with stakeholders and developers in web3, California seeks to create an informed supplement to the federal report on digital assets, which is due in September.

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