Troutman Pepper Consumer Financial Services Weekly Bulletin – September 2022 #2 | Troutman pepper

To help you keep abreast of relevant activities, below is a breakdown of some of the biggest federal and state level events impacting the consumer financial services industry in the past week:

Federal activities

State activities

Federal activities:

  • On September 9, the Financial Crimes Enforcement Network (FinCEN) published the findings of its Digital Identity Tech Sprint – a collaborative event it is hosting with the Federal Deposit Insurance Corporation – to develop solutions for financial institutions and regulators to help measure the effectiveness of digital identity verification, the process used to collect, validate and verify information about a person. For more information, click here.

  • On September 9, the Securities and Exchange Commission (SEC) announced plans to add a crypto-related office to the disclosure review program of its existing corporate finance division. The Office of Crypto Assets will review crypto-related filings and disclosures submitted by digital asset service providers. For more information, click here.

  • On September 9, SEC Chairman Gary Gensler spoke at The SEC is talking about 2022, saying he believes “the vast majority” of cryptocurrencies currently available on digital asset exchanges are unregistered securities. For more information, click here.

  • On September 9, while speaking at The SEC is talking about 2022, SEC Director of Enforcement Gurbir Grewal expressed the SEC’s intention to continue to pursue legal actions against crypto-related companies “regardless of the technology” used by the company. For more information, click here.

  • On September 9, SEC Commissioner Mark Uyeda spoke at the The SEC is talking about 2022, calling for the development of cryptographic rules. For more information, click here.

  • On September 8, the White House Office of Science and Technology Policy released a report, proposing that U.S. lawmakers and policymakers consider legal limitations or outright restrictions to reduce the environmental impact of mining. crypto. For more information, click here.

  • On September 8, the Federal Trade Commission hosted a public forum to discuss trade surveillance and data security practices. For more information, click here.

  • On September 8, the Consumer Financial Protection Bureau (CFPB) released a report on nursing home debt collection. The report primarily analyzed nursing home admission agreements that attempt to hold a nursing home resident’s friends and family personally responsible for the resident’s care. For more information, click here.

  • On September 8, six people, including two Coinbase employees, filed a lawsuit against the U.S. Treasury Department in the U.S. District Court for the Western District of Texas. The lawsuit alleges that the Treasury Department’s Office of Foreign Assets Control (OFAC) sanctioning of Tornado Cash exceeded its sanctioning authority because Tornado Cash, as a decentralized open-source software project, is not subject to OFAC’s sanctioning authority. For more information, click here.

  • On September 8, Federal Reserve Chairman Jerome Powell spoke about stablecoin legislation: “If people think something is money, then it must have the qualities of money. If not, then I don’t think you want to take money and make it just another consumer product where sometimes it fails and sometimes it’s good. For more information, click here.

  • On September 7, Acting Comptroller of the Office of Currency (OCC), Michael Hsu, discussed long-term threats to confidence in the banking sector in TCH + BPI Annual Conference At New York. Hsu reaffirmed the OCC’s goal of encouraging banks to make its overdraft fee programs more consumer-friendly. Hsu’s comments also included consideration of crypto risks. For more information, click here.

  • On Sept. 7, during a speech at the Brookings Institute, Federal Reserve Vice Chairman for Oversight Michael Barr said Congress should “work quickly” to pass stablecoin regulations. For more information, click here.

  • On Sept. 6, OFAC announced that it will release an expanded version of the Sanctions Guidelines originally signed by former President Barack Obama via Executive Order 13694, titled “Blocking the Property of Certain Individuals engaging in significant malicious computer activity”. The updated guidelines allow penalties of up to $311,000 or “an amount equal to twice the amount of the transaction causing the violation.” For more information, click here.

  • On September 1, US Senators Bob Casey (D-PA), Richard Blumenthal (D-CT), Elizabeth Warren (D-MA), Kirsten Gillibrand (D-NY) and Catherine Cortez Masto (D-NV) issued a letter to CFPB, asking the agency to better protect consumers from peer-to-peer payment app (P2P app) scams involving Cash App, Paypal, Venmo and other prominent P2P apps. For more information, click here.

  • On August 30, the Federal Reserve released a discussion paper on decentralized financial products. The document states that these products represent a small part of the global financial system and pose a risk to financial stability. For more information, click here.

State activities:

  • On September 8, Pennsylvania Attorney General Josh Shapiro announced a settlement with an online ticket seller accused of violating Pennsylvania consumer protection laws. The company reportedly changed its refund policy for events canceled during the early months of the COVID-19 pandemic without notifying buyers. Under the settlement agreement, the company will provide a full refund to certain Pennsylvania consumers, change certain payment processes and clarify certain unclear terms on its website. For more information, click here.

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