It is no secret that the United States lags behind other countries in the development of a national real-time payments infrastructure.[1] There are, of course, explanations for this lag, including widespread participation in the existing infrastructure rails and the existence of many different stakeholder interests limiting consensus over reforms.
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Jai R. Massari
Ms. Massari is a partner in Davis Polk's Financial Institutions Group and the trading and markets practice. [Full Bio]
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The New York AG Weighs In On Virtual Currency Exchanges
The regulation and operations of virtual currency exchanges are again in the spotlight, due to the new report issued by the Office of the New York Attorney General (OAG). The report, which follows the April launch by the OAG of its Virtual Markets Integrity Initiative (VMII…
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Regulators Step Up Enforcement on Crypto Firms
After a several month lull that led some to question the SEC’s focus on crypto enforcement, this week saw a spate of enforcement activity involving crypto assets: several SEC enforcement actions, an SEC trading suspension order, the first FINRA cryptocurrency enforcement action, and a preliminary court decision consistent with the…
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The FTC’s Growing Enforcement Interest in Fintech
The FTC is expanding its enforcement efforts for fintech, particularly in the areas of online and small-business lending, payments, and cryptocurrencies. At a recent event in Washington, D.C., the FTC’s Director of Consumer Protection, Andrew Smith, stated, “Commissioners are really interested in [fintech]. Finance will be a steady part of…
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OCC Grants Conditional National Bank Charter to a Mobile-Only Bank
Posted in Bank Regulation, Fintech
The Office of the Comptroller of the Currency (OCC) has granted conditional approval to digital-banking startup Varo Bank (previously Varo Money) of its application to form a de novo national bank. Varo Bank, N.A. would become the first mobile-only national bank in United States. This is an interesting…
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Federal Banking Regulators Can and Should Resolve Madden and True Lender Developments
The ability of banks to sell the loans they originate is a core element in the development and sustainability of a nationwide lending market. Recent legal developments threaten to undermine this ability, jeopardizing the foundation of a U.S. nationwide loan market and the core lending activities of banks.
A long-settled…
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Treasury Calls Upon Federal Banking Regulators to Act
Posted in Fintech
In its recent report on financial innovation, the U.S. Treasury Department calls upon federal banking regulators to address the uncertainty in lending markets created by the Madden case and True Lender developments.
The Report recognizes that “unsecured consumer credit could be diminished because nonbank firms such as marketplace lenders may…
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Treasury Calls on the Federal Reserve to Reassess the BHC Act Control Framework to Facilitate Innovation
The Federal Reserve’s current approach to determining whether a banking organization has control over another company for purposes of the Bank Holding Company Act can discourage fintech investments by banking organizations. This impact was discussed in the Treasury Department’s report on nonbank financial institutions, fintech and innovation. The report highlights…
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Treasury Fintech Report Addresses Wide-Ranging Topics with Reform Recommendations
Posted in Fintech
The Treasury Department published its fourth and final report in response to President Trump’s 2017 Executive Order that established core principles for U.S. financial regulation. The highly anticipated report addresses the U.S. financial regulatory approach to nonbank financial institutions, financial technology, and financial innovation and includes recommendations for Congress and…
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Public Memorandum: CFTC Proposes Maintaining Swap Dealer De Minimis Registration Threshold at $8 Billion with Expanded Exceptions
Our public memorandum here describes the notice of proposed rulemaking published by the CFTC on June 12, 2018 that would make permanent the $8 billion temporary swap dealer de minimis registration threshold currently in effect and would make other changes to the de minimis exception.