Multiple U.S. government agencies have pursued a stream of enforcement actions in the digital asset industry in recent years.
In fiscal year 2022, 20% percent of the enforcement actions brought by the Commodity Futures...more
The Definitions aim to support the safe and efficient development of the digital asset derivatives market through consistent contractual standards.
On January 26, 2023, the International Swaps and Derivatives...more
Custodia Bank was denied Federal Reserve membership, while certain crypto principal activities are deemed presumptively not appropriate for member banks.
On January 27, 2023, the Board of Governors of the Federal Reserve...more
The Guidance clarifies the regulator’s expectations on safekeeping customer digital assets, and the disclosures that must accompany such arrangements.
On January 23, 2023, the New York Department of Financial Services...more
2/3/2023
/ Banks ,
BitLicense ,
Cryptoassets ,
Custodians ,
Digital Assets ,
Disclosure Requirements ,
Financial Services Industry ,
Insolvency ,
New Guidance ,
NYDFS ,
Virtual Currency
The Acting Comptroller of the OCC discussed the limits of large bank manageability and the steps that regulators can take to address the risks posed by size and complexity.
On January 17, 2023, Acting Comptroller of the...more
The Financial Services Committee seeks to bring order to an industry many say has suffered from lack of proper rulemaking.
On January 12, 2023, incoming House Financial Services Committee Chair Patrick McHenry...more
While a conclusion to the much-hyped case may be approaching, market participants should be wary of doomsday prognostications.
As a new year begins, the digital assets industry is still enduring a deep and widespread crypto...more
1/20/2023
/ Aiding and Abetting ,
Blockchain ,
Cryptocurrency ,
Digital Assets ,
Enforcement Actions ,
Howey ,
Investment Contract ,
Offerings ,
Popular ,
Securities ,
Securities Act of 1933 ,
Securities and Exchange Commission (SEC) ,
Securities Litigation ,
Securities Violations ,
Statutory Interpretation ,
Unregistered Securities
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
1/12/2023
/ Banking Regulators ,
Banking Sector ,
Cryptoassets ,
Cryptocurrency ,
FDIC ,
Federal Reserve ,
Financial Institutions ,
Joint Statements ,
OCC ,
Risk Assessment ,
Risk Management
The Guidance would increase expectations for regulated financial institutions to identify, measure, monitor, and control climate-related financial risks.
For the past few years, the New York State Department of Financial...more
Digital asset activities of licensed institutions must be approved and will be assessed for potential safety and soundness risks.
On December 15, 2022, the New York State Department of Financial Services (NYDFS) issued...more
The guiding principles are similar to related proposals from other banking regulators, but will require further clarification through the comment process.
On December 2, 2022, the Board of Governors of the Federal...more
12/12/2022
/ Climate Change ,
Comment Period ,
Corporate Governance ,
Federal Reserve ,
Financial Institutions ,
Foreign Banks ,
Governance Standards ,
Large Financial Institutions (LFIs) ,
Proposed Regulation ,
Risk Management ,
Risk-Based Approaches ,
Strategic Planning ,
Supervision
In granting the SEC’s motion for summary judgment, a federal court ruled that sales of LBC tokens were securities transactions.
On November 7, 2022, the Securities and Exchange Commission (SEC) prevailed in a motion for...more
The comprehensive framework, which spans multiple reports, aims to spur risk mitigation efforts and potentially a US central bank digital currency.
On September 16, 2022, the White House published a fact sheet described...more
9/30/2022
/ Bank Secrecy Act ,
Biden Administration ,
Central Bank Digital Currency (CBDCs) ,
Cryptocurrency ,
Digital Assets ,
Executive Orders ,
Financial Regulatory Agencies ,
Financial Services Industry ,
Financial Stability Board ,
Financial Transactions ,
FSOC ,
OECD
The plan directs the agency to develop a robust regulatory framework to prevent market misconduct, as SEC officials’ public comments keep advancements in technology high on the agenda.
On August 25, 2022, the Securities...more
9/16/2022
/ CFTC ,
Digital Assets ,
Disclosure Requirements ,
Enforcement ,
Howey ,
Popular ,
Retail Investors ,
Reves Test ,
Securities and Exchange Commission (SEC) ,
Strategic Planning ,
Technology Sector
The Federal Reserve is taking measured steps to better understand the types of cryptoasset-related activities contemplated by its supervised banking organizations.
On August 16, 2022, the Board of Governors of the...more
8/25/2022
/ AML/CFT ,
Compliance ,
Consumer Protection Laws ,
Cryptoassets ,
Cryptocurrency ,
Cybersecurity ,
FDIC ,
Federal Reserve ,
Financial Institutions ,
Financial Transactions ,
OCC ,
Risk Management ,
Supervision ,
Technology
The latest bipartisan crypto bill would give the CFTC new tools and authorities to regulate digital commodities, with a focus on market integrity and consumer protection.
On August 3, 2022, a bipartisan group of US...more
The US Treasury opens a Pandora’s box of legal issues as it targets a decentralized finance protocol used for both licit and illicit means.
On August 8, 2022, the US Department of the Treasury’s Office of Foreign Assets...more
8/12/2022
/ Blockchain ,
Cryptocurrency ,
Decentralized Finance (DeFi) ,
Economic Sanctions ,
Ethereum ,
Foreign Policy ,
Money Laundering ,
National Security ,
Office of Foreign Assets Control (OFAC) ,
Popular ,
Ransomware ,
SDN List ,
U.S. Treasury
A new Article 12 and amendments to Article 9 regarding “controllable electronic records” would govern transactions and security interests in digital assets.
On July 13, 2022, the Uniform Law Commission (in partnership...more
The global central bank cooperative body would bring stablecoins within the international standards for payment, clearing, and settlement systems....more
8/2/2022
/ AML/CFT ,
Bureau of Industry and Security (BIS) ,
Committee on Payments and Market Infrastructure (CPMI) ,
EU ,
Final Guidance ,
Financial Markets ,
Financial Stability Board ,
Hong Kong ,
Information Reports ,
IOSCO ,
Japan ,
Payment Systems ,
Regulatory Agenda ,
Risk Management ,
Stablecoins ,
UK
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
7/8/2022
/ Banking Sector ,
Blockchain ,
Cryptocurrency ,
Digital Assets ,
FFIEC ,
Financial Services Industry ,
FinCEN ,
FinTech ,
Payment Systems ,
Proposed Legislation ,
Stablecoins
The RFIA would define consumer protection standards for digital assets and introduce new requirements regarding digital asset use in interstate money transfers.
Latham & Watkins presents a blog series on the Responsible...more
6/27/2022
/ Blockchain ,
Consumer Financial Protection Bureau (CFPB) ,
Consumer Protection Laws ,
Cryptocurrency ,
Digital Assets ,
Digital Service Providers ,
Digital Services ,
Disclosure Requirements ,
Financial Services Industry ,
Money Transmitter ,
Proposed Legislation ,
Regulatory Agencies
The Claims Code seeks to ensure the integrity of voluntary carbon markets to support achievement of the Paris Agreement goals.
The Voluntary Carbon Markets Integrity (VCMI) Initiative is “a multi-stakeholder platform to...more
Securities issues are covered in Title III (Responsible Securities Innovation) of the Responsible Financial Innovation Act (RFIA). The RFIA would add a new Section 41 to the Securities Exchange Act of 1934 (Securities...more
The agency will use the information to take further steps to address climate risks in the commodity derivatives markets.
On June 2, 2022, the Commodity Futures Trading Commission (CFTC) issued a Request for Information...more
Treasury officials believe congressional action is “highly appropriate” this year to address the risks that the latest financial stability report underscores.
On May 9, 2022, the Board of Governors of the Federal Reserve...more