On May 9, 2019, the Financial Crimes Enforcement Network (“FinCEN”) published interpretive guidance to reiterate how FinCEN’s existing regulations relating to money services businesses (“MSBs”) apply to business models involving convertible virtual currencies (“CVCs”). The guidance is the most significant
Cov Financial Services
Developments in the Financial Services Industry
Cov Financial Services, published by Covington & Burling LLP, focuses on legal issues at the intersection of financial services and regulatory policy. The blog covers topics such as true lender litigation, fintech partnerships, cryptocurrency theft and related class actions, cybersecurity risks in financial services, and regulatory developments including climate-related financial risk management for large financial institutions. It addresses challenges faced by banks, fintech companies, and other financial entities in navigating complex compliance, enforcement, and litigation matters. The content reflects ongoing trends in financial regulation, consumer protection, and emerging risks in digital assets and lending practices.
Latest from Cov Financial Services - Page 8
CFTC Issues Report on Automated Futures Orders
On Wednesday, March 27, 2019, the CFTC’s Market Intelligence Branch of the Division of Market Oversight issued a report on the impact of automated orders in futures markets to determine how technological change affects futures trading. Automated trading refers to…
FTC Proposes to Add Detailed Cybersecurity Requirements to the GLBA Safeguards Rule
On March 5, 2019 the Federal Trade Commission (“FTC”) published requests for comment on proposed amendments to two key rules under the Gramm-Leach-Bliley Act (“GLBA”). Most significantly, the FTC is proposing to add more detailed requirements to the Safeguards Rule,…
Senator Crapo Signals Push for Data Protection Legislation
On January 28, 2019, Senator Mike Crapo (R.-Id.), Chair of the Senate Committee on Banking, Housing, and Urban Affairs, published a column signaling his support for data privacy and security legislation in the 116th Congress.
In his column, Senator Crapo…
Overview of Fintech Regulation in the United States
By Mike Nonaka
Innovation in financial services continues to move at a rapid pace. The significant increase in the number of fintech companies in recent years has highlighted a burgeoning market with significant economic potential, and a commercial need to create efficiencies and…
The Latest Brexit Chaos: What Does it Mean for Derivatives Markets?
The past few weeks have been chaotic for both Brexit negotiations and U.K. politics overall. On January 15, 2019, British Prime Minister Theresa May’s Brexit plan succumbed to historic defeat in Parliament. Brexit watchers expected a defeat but the record…
New Guidelines to Assist in Designing Secure Platforms for Processing Payment Transactions
By Mike Nonaka
On January 17, 2019, the Payment Card Industry Security Standards Council (the “Council”), a payment industry association, released a new framework for PCI software security – the PCI Software Security Framework – to assist companies in designing and maintaining secure…
ESA Report Outlines Strategies on Facilitating Cross-Border EU Fintech Innovation
In a joint report (the “Report”) published on 7 January 2019, the EU’s three financial industry watchdogs considered the need for potential strategies to help coordinate and promote innovation in the EU fintech space.
The Report by the European Securities…
Financial Stability Oversight Council Rescinds Last Nonbank SIFI Designation
By Stuart Stock
On October 17, 2018, the Financial Stability Oversight Council (“FSOC”) announced that it voted unanimously to rescind its designation of Prudential Financial, Inc. as a so-called “systemically important financial institution” (“SIFI”). Section 113 of the Dodd-Frank Wall Street and Consumer…
Governor Brainard Discusses Financial Inclusion, Fintech, and Reforms to the Community Reinvestment Act
By David Stein
On October 17, 2018, Federal Reserve Board Governor Lael Brainard discussed the potential for financial innovation, and in particular, fintech products and services, to foster financial inclusion of underserved families and small businesses. She has frequently addressed the importance of…