https://www.morganlewis.com/rss/blogsBlogs RSS Feed25https://www.morganlewis.com/blogs/finreg/2023/12/sec-adopts-new-treasury-clearing-rulesOn December 13, 2023, the US Securities and Exchange Commission (SEC) adopted rule amendments (Treasury Clearing Rules) designed to improve risk management in clearance and settlement and to facilitate additional central clearing for the US treasury market.Thu, 14 Dec 2023 00:00:00 -060006e2af9a-c1eb-455d-ba3e-26d4578de925SECSECTAXTAXPenelope L. ChristophorouIgnacio A. SandovalKatherine Dobson BuckleyWashington DChttps://www.morganlewis.com/blogs/finreg/2023/12/sec-set-to-adopt-treasury-clearing-rules-at-its-dec-13-meetingAt its next open meeting on December 13, 2023, the US Securities and Exchange Commission (SEC) is expected to adopt rules (the Treasury Clearing Rules) to improve risk management in clearance and settlement and facilitate additional central clearing for the US treasury market. More specifically, the SEC is scheduled to consider whether to adopt amendments to the standards applicable to covered clearing agencies for US Treasury securities regarding their membership requirements and risk management.Fri, 08 Dec 2023 00:00:00 -0600de79f7a8-a898-4eaa-a55c-12faf22be6e0IMPGIMPGFINSVCSFINSVCSIgnacio A. SandovalPenelope L. ChristophorouKatherine Dobson Buckleyhttps://www.morganlewis.com/blogs/finreg/2023/11/regulation-innovation-and-authentication-whats-on-the-horizon-for-fintechs-in-2024Financial services is perhaps the most regulated industry in the world, and the intersection between financial services, technology, and law remains a complicated and evolving space. A team of Morgan Lewis lawyers recently attended the 2023 Money 20/20 conference and previewed some major themes and trends that the industry can expect in 2024.Tue, 21 Nov 2023 00:00:00 -06003d8908a1-f227-4c30-a50a-6abf4870b700IMPGIMPGCBTCBTTMTTMTMAMAPEPEEBTEBTLITLITFINFINTECHTECHKaren A. AbesamisAllen DensonAndrew M. RaySarah V. RiddellChristina W. Wlodarczykhttps://www.morganlewis.com/blogs/finreg/2023/10/sec-adopts-securities-lending-reporting-rulesOn October 13, 2023, the US Securities and Exchange Commission (SEC) adopted Rule 10c-1a requiring the reporting and dissemination of certain details regarding securities lending transactions.Fri, 13 Oct 2023 00:00:00 -0500314a4a18-6cdd-4643-954a-c1b559c5d962IMPGIMPGFINSVCSFINSVCSIgnacio A. Sandovalhttps://www.morganlewis.com/blogs/finreg/2023/08/federal-reserve-announces-supervisory-developments-for-dollar-tokens-and-novel-activities-but-whats-newThe Board of Governors of the Federal Reserve System (Federal Reserve) took another tepid step into the digital asset space on August 8, announcing that it has established a program to “enhance the supervision of novel activities conducted by banking organizations supervised” by the Federal Reserve. In addition, the Federal Reserve issued guidance explaining the supervisory nonobjection process for state member banks “seeking to engage in certain activities involving tokens denominated in national currencies and issued using distributed ledger technology or similar technologies to facilitate payments.”Fri, 11 Aug 2023 00:00:00 -050083537731-0936-452e-a24a-fb8fd3b89528IMPGIMPGFINSVCSFINSVCSChristopher M. ParidonKristin LeeRebecca A. Raskindhttps://www.morganlewis.com/blogs/finreg/2023/07/increased-scrutiny-of-uninsured-deposits-continues-fdic-reminds-idis-of-uninsured-deposit-reporting-obligationsThe Federal Deposit Insurance Corporation (FDIC) continued the focus shown over the last several months, and especially since the March 2023 failure of Silicon Valley Bank (SVB) and associated events, by the federal banking agencies on uninsured deposits when it issued a Financial Institution Letter (FIL), Estimated Uninsured Deposits Reporting Expectations, on July 24, 2023.Fri, 28 Jul 2023 00:00:00 -05008882ffb6-37df-42e2-bb16-e426212c1832IMPGIMPGFINSVCSFINSVCSChristopher M. ParidonKristin LeeRebecca A. Raskindhttps://www.morganlewis.com/blogs/finreg/2023/06/cftc-issues-amended-order-of-dco-registration-and-advisory-on-digital-asset-clearing-risksIn contrast to the “regulation by enforcement” theme to which those in the digital assets community have become accustomed, the Commodity Futures Trading Commission (CFTC or Commission) has been active in issuing guidance to the industry. Recently, CFTC staff issued an advisory on digital asset–related risks and the Commission issued an amended Order of Derivatives Clearing Organization (DCO) Registration to Cboe Clear Digital, LLC (Cboe Clear Digital), allowing it to clear margined futures on digital assets.Thu, 08 Jun 2023 00:00:00 -05003a043df2-048b-4b7a-b62c-afc6ddb2cbe6IMPGIMPGFINSVCSFINSVCSSarah V. RiddellIgnacio A. Sandovalhttps://www.morganlewis.com/blogs/finreg/2023/04/an-end-to-the-paper-chase-proposed-bill-could-greatly-expand-sec-registrants-edelivery-useThe House Committee on Financial Services passed the Improving Disclosure for Investors Bill of 2023 on April 26, 2023 with bipartisan support. If passed by Congress and signed into law, the bill could alter the regulatory landscape for electronic delivery (e-delivery) by US Securities and Exchange Commission (SEC) registrants by eliminating the requirement to obtain an investor’s affirmative consent for e-delivery and allowing firms to implement a notice and optout approach to implementing e-delivery.Fri, 28 Apr 2023 00:00:00 -05006f8900fa-479f-40f2-8c75-e361bd73b0c8IMPGIMPGFINSVCSFINSVCSSteven W. StoneJames E. DoenchNicole M. AlkireKyle D. Whiteheadhttps://www.morganlewis.com/blogs/finreg/2023/04/cfpb-releases-final-small-business-lending-ruleThe Consumer Financial Protection Bureau (CFPB, the Bureau) promulgated on March 30 its final rule implementing Section 1071 of the Dodd-Frank Act. The rule requires that covered financial institutions collect and report to the Bureau data on applications for credit by small businesses (those having gross revenue of under $5 million in their latest fiscal year).Thu, 06 Apr 2023 00:00:00 -050012cb417e-e3bc-496e-811a-b61aefa10f06IMPGIMPGLITLITFINSVCSFINSVCSDavid I. MonteiroNicholas M. GessMichael A. CummingVictor H. CruzMartin Hirschprunghttps://www.morganlewis.com/blogs/finreg/2023/02/states-countries-focus-on-fraud-prevention-and-customer-protection-in-cryptoNew York has enhanced its fraud prevention tools, while consumers can identify crypto scams using California’s scam tracker. A week after the US Securities and Exchange Commission (SEC) proposed amendments to cover cryptoassets under the Custody Rule applicable to investment advisers, federal banking agencies issued a statement reminding banks of their risk management obligations in connection with holding crypto companies’ deposits. The United Kingdom is considering fund tokenization, particularly as it relates to retail investors, and the Hong Kong Securities and Futures Commission is gearing up for a crypto exchange platform licensing regime while considering whether retail investors should trade on licensed crypto platforms.Fri, 24 Feb 2023 00:00:00 -060075cac16d-9fab-4226-92f2-9211f7866561IMPGIMPGSECSECASIAASIAFINSVCSFINSVCSFINFINTECHTECHIgnacio A. SandovalSteven LightstoneSarah V. Riddellhttps://www.morganlewis.com/blogs/finreg/2023/02/congress-codifies-sec-staffs-ma-broker-no-action-letter-with-a-tweakAs many are aware, Congress passed its own version of the US Securities and Exchange Commission (SEC) staff’s mergers and acquisitions (M&A) broker no-action letter in December 2022, creating a new exemption from broker registration in Section 15(b)(13) of the Exchange Act that largely tracks the SEC staff’s no-action letter, with one important tweak.Wed, 22 Feb 2023 00:00:00 -0600cb330b3c-56e1-4aed-a8f8-dfe9a4d1f13eIMPGIMPGFINSVCSFINSVCSSteven W. StoneAmy Natterson KrollIgnacio A. SandovalMargaret R. BlakeKyle D. WhiteheadEden Nebelhttps://www.morganlewis.com/blogs/finreg/2023/02/round-up-of-recent-developments-in-the-digital-asset-spaceIn the continuation of our new blog series highlighting recent developments in the digital asset space, this post details continued action policy and enforcement actions by US regulators.Fri, 17 Feb 2023 00:00:00 -0600cb2b32c8-5c58-430c-926c-92370bd4869aIMPGIMPGSECSECFINSVCSFINSVCSFINFINTECHTECHSarah V. RiddellIgnacio A. Sandovalhttps://www.morganlewis.com/blogs/finreg/2023/02/staking-as-a-service-regulating-digital-assets-in-the-uk-and-dubai-and-moreIn this new series, we will provide an overview of recent noteworthy developments in the digital asset space around the world. The start of February was a busy period for regulators in the United States, where the US Securities and Exchange Commission (SEC) settled charges against an exchange in connection with its staking services and where other regulators issued digital asset guidance. Both the United Kingdom and Dubai Virtual Asset Regulatory Authority introduced plans to regulate digital asset activities. The Hong Kong Monetary Authority released a framework for stablecoin regulation, but it is unclear whether a new law will be adopted or existing laws will be amended to incorporate the framework.Mon, 13 Feb 2023 00:00:00 -0600d3829b50-ea01-4245-80a0-c9455bad7edfIMPGIMPGSECSECASIAASIAFINSVCSFINSVCSFINFINTECHTECHIgnacio A. SandovalSarah V. Riddellhttps://www.morganlewis.com/blogs/finreg/2023/02/nydfs-to-crypto-custodians-proceed-with-cautionIn the depth of a crypto winter, the New York State Department of Financial Services (DFS) issued guidance (the Guidance) on custodial standards for those with a BitLicense or that are registered as New York state limited purpose trust companies that engage in virtual currency (VC) business activity (VC Trust Companies and, together with BitLicensees, VC Custodians). In addition to providing customer segregation and compliance standards, DFS also announced in the Guidance its position that a VC Custodian that enters into a sub-custody arrangement must obtain prior DFS approval before the arrangement’s implementation.Thu, 09 Feb 2023 00:00:00 -0600e4446515-c21e-4ce6-8474-d155ee8c9becIMPGIMPGFINSVCSFINSVCSIgnacio A. SandovalSarah V. Riddellhttps://www.morganlewis.com/blogs/finreg/2023/02/new-york-releases-long-awaited-rule-on-commercial-financing-disclosuresThe New York Department of Financial Services (NYDFS) promulgated its long-awaited final rule regarding commercial financing disclosures, which applies to transactions of $2.5 million or less, on February 1, 2023. The state’s Commercial Finance Disclosure Law (CFDL) took effect January 1, 2022 and requires a TILA-like cost-of-credit disclosure to small businesses when they shop for commercial financing.Wed, 08 Feb 2023 00:00:00 -0600f60594f4-186f-40f9-b457-77e646e46217IMPGIMPGFINSVCSFINSVCSDavid I. MonteiroChristopher M. ParidonKristin LeeMichael A. Cumminghttps://www.morganlewis.com/blogs/finreg/2023/02/cfpb-proposal-targets-limiting-credit-card-late-feesThe Consumer Financial Protection Bureau (CFPB) recently issued a notice of proposed rulemaking to amend Regulation Z (the Proposal), which implements the Truth in Lending Act (TILA), to better ensure that late fees charged on credit card accounts are “reasonable and proportional” to late payments as required under the Credit Card Accountability and Disclosure Act of 2009 (Card Act).Tue, 07 Feb 2023 00:00:00 -0600f935dae5-d1e4-4138-8161-de924adbcff5IMPGIMPGFDAFDALITLITFINSVCSFINSVCSDavid I. MonteiroNicholas M. GessMartin HirschprungAndrew M. Rayhttps://www.morganlewis.com/blogs/finreg/2023/01/cfpb-proposes-additional-reporting-requirements-on-non-bank-financial-institutionsFor the second time in a month, the Consumer Financial Protection Bureau (CFPB) has proposed a new rule that would require businesses to report already public information and thereby increase the burdens on, and risks to, the nonbank financial services industry, which may ultimately increase costs to consumers or slow the proliferation of new products that benefit consumers.Wed, 25 Jan 2023 00:00:00 -06002f45c7fb-bc22-4faf-bd63-bb4af1bf54acCBTCBTEBTEBTLITLITFINSVCSFINSVCSNicholas M. GessDavid I. MonteiroAndrew M. Rayhttps://www.morganlewis.com/blogs/finreg/2022/12/court-oks-cftcs-service-of-process-through-online-forum-chat-box-in-ooki-dao-actionThe US District Court for the Northern District of California ruled on December 20, 2022, that the Commodity Futures Trading Commission (CFTC) properly served the defendant, Ooki DAO, by posting summons documents in Ooki DAO’s online discussion forum and in its help chat box. Commodity Futures Trading Comm'n v. Ooki DAO, No. 3:22-cv-05416-WHO, 2022 BL 454541, 2022 U.S. Dist. Lexis 228820 (N.D. Cal. Dec. 20, 2022), Court Opinion (the Order).Thu, 22 Dec 2022 00:00:00 -060096fd0304-4ca7-40c2-ae40-998ccf60d1ffIMPGIMPGFINSVCSFINSVCSFINFINTECHTECHIgnacio A. SandovalSarah V. Riddellhttps://www.morganlewis.com/blogs/finreg/2022/12/fdic-proposes-updates-on-its-official-signage-rule-to-better-align-with-changing-banking-landscapeThe FDIC Board of Directors issued a proposal on December 13 amending and updating the rules regarding the use of the official FDIC sign and advertising statements to better reflect the modern consumer banking landscape. As noted in a memorandum from the FDIC staff, the update is also meant to address the growth of the fintech sector and partnerships between banks and fintechs. The proposed rule also seeks to clarify instances when FDIC deposit insurance coverage is being misrepresented to consumers.Wed, 21 Dec 2022 00:00:00 -060074c2cb8e-b91d-4b7f-ba92-6dc8bcfe25a0IMPGIMPGFDAFDALITLITFINSVCSFINSVCSFINFINTECHTECHChristopher M. ParidonKristin LeeMartin Hirschprunghttps://www.morganlewis.com/blogs/finreg/2022/12/sec-staff-clarifies-position-on-disaggregation-for-section-13d-and-16a-reporting-by-certain-etf-authorized-participantsThe SEC’s Division of Corporation Finance recently posted new compliance and disclosure interpretations concluding that any registered broker-dealer acting as an authorized participant (AP) for any ActiveShares exchange-traded fund (ETF) may rely on the Commission’s disaggregation guidance to separately report ownership of securities acquired in a confidential brokerage account (Confidential Account) with a nonaffiliated brokerage firm (AP Representative), for the benefit of the AP.Fri, 16 Dec 2022 00:00:00 -06009b030e7f-e28d-4a54-8b9d-b67a231f657bIMPGIMPGFINSVCSFINSVCSDavid A. SirignanoW. John McGuirehttps://www.morganlewis.com/blogs/finreg/2022/12/sec-proposes-equity-market-overhaul-and-best-execution-ruleOn December 14, 2022, the US Securities and Exchange Commission (SEC) proposed a fundamental restructuring of the US equity markets in the form of two rule amendments and one new rule proposal (the Equity Market Proposals). In addition, the SEC proposed new Regulation Best Execution (Proposed Regulation Best Ex) under the Securities Exchange Act of 1934 (Exchange Act). The comment period for each rule proposal will remain open until the later of March 31, 2023, or 60 days after the applicable proposing release is published in the Federal Register .Wed, 14 Dec 2022 00:00:00 -06005087b601-3193-4ddd-96a3-567e2f3c8426IMPGIMPGTAXTAXFINSVCSFINSVCSIgnacio A. SandovalJames E. DoenchKyle D. WhiteheadWashington DCNew Yorkhttps://www.morganlewis.com/blogs/finreg/2022/12/cfpb-proposes-registry-to-detect-repeat-offendersThe Consumer Financial Protection Bureau (CFPB or Bureau) has proposed a registry in which certain nonbank financial institutions must deposit copies of certain federal, state, and local orders. The proposed rule would also require a subset of larger nonbank financial institutions already subject to the Bureau’s supervisory authority to designate an individual to attest to compliance with such orders.Tue, 13 Dec 2022 00:00:00 -0600c63b3fae-c4d7-41fd-a80b-1ba6def9b9a4IMPGIMPGLITLITCBTCBTEBTEBTFINSVCSFINSVCSFINFINTECHTECHNicholas M. GessDavid I. MonteiroAndrew M. RayRyan P. McCarthyhttps://www.morganlewis.com/blogs/finreg/2022/12/public-companies-consider-updating-disclosures-to-reflect-risks-posed-by-cryptoasset-marketsJust shy of a month since FTX declared bankruptcy, the US Securities and Exchange Commission’s (SEC’s) Division of Corporation Finance (Division or staff) published informal guidance on how public companies could be asked to address the possible impact of financial distress in the cryptoasset market. The guidance includes a “sample” crypto-specific comment letter focused on disclosure that public companies should consider providing in filings made under the Securities Act of 1933 (Securities Act) and Securities Exchange Act of 1934 (Exchange Act), as applicable.Fri, 09 Dec 2022 00:00:00 -06008f0ac275-f87d-40e0-89a5-9d975e2c7ecdSECSECIMPGIMPGFINSVCSFINSVCSErin E. MartinSarah V. Riddellhttps://www.morganlewis.com/blogs/finreg/2022/12/sec-to-propose-major-market-structure-overhaulAt its next open meeting on December 14, 2022, the US Securities and Exchange Commission is expected to propose a series of rules and rule amendments that have the potential to fundamentally reshape the structure of the US securities markets.Wed, 07 Dec 2022 00:00:00 -0600303c3b5f-2a6a-4c9e-a957-80f12f110d45IMPGIMPGFINSVCSFINSVCSIgnacio A. SandovalKyle D. Whiteheadhttps://www.morganlewis.com/blogs/finreg/2022/12/congressional-hearings-on-ftx-collapse-may-lead-to-crypto-regulationsThe Senate Agriculture, Nutrition & Forestry Committee held a hearing, “Why Congress Needs to Act: Lessons Learned From the FTX Collapse,” on December 1, 2022, receiving testimony from Commodity Future Trading Commission (CFTC) Chairman Rostin Behnam. With the exception of very few exchanges during the Q&A portion of the hearing, the committee, which asked several questions about the CFTC’s oversight of FTX’s CFTC-registered affiliate, LedgerX, was supportive of the CFTC and did not lay much blame at the feet of the regulator. Rather, many senators were most eager to discuss robust, “whole of government” oversight and regulation of the digital asset economy.Mon, 05 Dec 2022 00:00:00 -060086254c1f-397d-4d3d-ac9f-707d47941a0dIMPGIMPGLITLITFINSVCSFINSVCSFINFINTECHTECHAndrew M. RayNicholas M. GessSarah V. Riddell