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Banking Regulators Issue Joint Statement on Crypto Risks

Banking organizations should ensure appropriate risk management, but regulators are skeptical of certain crypto activities as principal. On January 3, 2023, the Board of Governors of the Federal Reserve System (Federal...more

Responsible Financial Innovation Act Offers Clarity, Safeguards for Digital Assets - Banking and Payment Stablecoins

The RFIA could make it easier for fintechs dealing in digital assets and stablecoins to access Federal Reserve bank services. Latham & Watkins presents a blog series on the Responsible Financial Innovation Act, which was...more

“SOFR First” Initiative Takes Flight

As the countdown to the LIBOR sunset enters its final six months, the CFTC staff is trying to help the market transition. With less than six months to go before the London Interbank Offered Rate (LIBOR) expires on December...more

El Salvador Christens Bitcoin as Legal Tender

A sovereign nation’s decision to adopt Bitcoin as legal tender raises interesting questions — and legal ramifications. On June 8, 2021, El Salvador’s Legislative Assembly voted to establish Bitcoin as unrestricted legal...more

Federal Reserve Recognizes Significance of Climate Risks on Financial Stability

The US prudential regulator is paying attention to climate risks, and will likely act to mitigate those risks if they threaten financial stability. In its November 2020 Financial Stability Report (the Report), the Board of...more

Banks Can Hold Stablecoin Reserves, OCC States in Crypto-Friendly Letter

The US OCC allows banks, with certain restrictions, to hold assets in reserve for stablecoin issuers. On September 21, 2020, the US Office of the Comptroller of the Currency (OCC) issued Interpretive Letter #1172 (the...more

A Path Forward for Open Banking

As third-party access to consumer financial data expands, regulators balance innovation, customer choice, and data protection. Consumers’ rights to access and use their personal financial information has been a key focus of...more

Regulators Gear Up for LIBOR Transition Testing

In anticipation of LIBOR discontinuation, key US and UK regulators signal a shift toward examining transition progress. After an initial phase of applying mostly verbal pressure, UK and US regulators are now taking a more...more

From Safe Deposit Boxes to Cold Wallets, Bank Custody Evolves

The OCC greenlights bank custody of cryptoassets, opening a significant door to mainstream adoption and innovation. On July 22, 2020, the US Office of the Comptroller of the Currency (OCC) issued Interpretive Letter #1170...more

Let’s Settle This Immediately: The Fed Joins the Global Faster-Payments Trend

The Federal Reserve is finally stepping into the real-time payments arena. On August 5, 2019, the Board of Governors of the US Federal Reserve System (the Fed) announced that it plans to roll out a real-time payment and...more

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