In its second action involving NFTs, the SEC targets an offering tied to fundraising and promises of future value. By Ghaith Mahmood, Nima H. Mohebbi, Stephen P. Wink, Douglas K. Yatter, Adam Zuckerman, Luca Marquard, and Deric Behar On September 13, 2023, the Securities and Exchange Commission (SEC) issued a cease-and-desist order (the Order) against … Continue Reading
An appeals court panel rules that the SEC rejection of a proposed spot bitcoin ETP was arbitrary and capricious, opening the door for the potential launch of numerous ETPs in the near future. By Jack Barber, Aaron Gilbride, Marlon Paz, Stephen P. Wink, and Deric Behar On August 29, 2023, a three-judge panel on the District of … Continue Reading
A new publication from the UK’s financial regulator signals to firms that they should take steps to manage risks in the use of AI. By Stuart Davis, Fiona M. Maclean, Gabriel Lakeman, and Imaan Nazir The UK’s Financial Conduct Authority (FCA) has published its latest board minutes highlighting its increasing focus on artificial intelligence (AI), … Continue Reading
A federal court’s dismissal of claims against a decentralized cryptocurrency platform and its investors for the actions of scam token issuers is a case of first impression with wider significance. By Jenny Cieplak, Benjamin A. Naftalis, Stephen P. Wink, Douglas K. Yatter, Gregory Mortenson, and Deric Behar On August 29, 2023, the US District Court … Continue Reading
In its first enforcement action involving NFTs, the SEC focused on issuer marketing that promised outsized returns on investment and platform building. By Ghaith Mahmood, Nima H. Mohebbi, Stephen P. Wink, Douglas K. Yatter, Adam Zuckerman, and Deric Behar On August 28, 2023, the Securities and Exchange Commission (SEC) issued a cease-and-desist order (the Order) … Continue Reading
The move becomes effective on October 1, 2023, with the Supreme Court soon to decide on the agency’s rule-writing authority. By Barrie VanBrackle, Marifiel Gonzalez, and Deric Behar On February 1, 2023, the Consumer Financial Protection Bureau (CFPB) proposed a rule (the Proposal) to amend Regulation Z, which implements the Truth in Lending Act (the Act) … Continue Reading
The Monetary Authority of Singapore announced a new framework that seeks to ensure value stability for stablecoins regulated in Singapore. By Simon Hawkins, Farhana Sharmeen, Tan Gen Huong, and Adrian Fong On 15 August 2023, the Monetary Authority of Singapore (MAS), Singapore’s primary regulator for banks and payment services, announced its new stablecoin regulatory framework. … Continue Reading
The Act aims to modernize and streamline state regulation of money transmitters while promoting innovation and consumer protection. By Parag Patel, Mik Bushinski, and Deric Behar More than a dozen US states have enacted the Money Transmission Modernization Act (MTMA) in whole or in part, while several others have introduced bills to implement some or all … Continue Reading
New laws implement regulatory standards and licensing requirements for fintechs seeking to improve employee access to wages. By Parag Patel, Mik Bushinski, and Deric Behar On June 13, 2023, Nevada enacted a law that regulates earned wage access (EWA) services provided to state residents. Missouri followed by enacting an EWA law on July 7, 2023 … Continue Reading
A new program addresses innovative banking activities such as bank-fintech partnerships and digital assets while reinforcing guardrails around stablecoin activity. By Arthur S. Long, Parag Patel, Pia Naib, Ja Hyeon Park, and Deric Behar On August 8, 2023, the Board of Governors of the Federal Reserve System (FRB) issued guidance to the banking organizations that … Continue Reading
A bifurcated decision in a highly anticipated digital assets enforcement action may not provide the clarity that market participants want or need. By Jack Barber, Jenny Cieplak, Benjamin Naftalis, John Sikora, Stephen P. Wink, Douglas K. Yatter, Luca Marquard, Adam Zuckerman, and Deric Behar On July 13, 2023, Judge Analisa Torres of the US District Court for … Continue Reading
Consumers and businesses stand to benefit from rapid access to funds at any time when routed through participating financial institutions. By Parag Patel, Barrie VanBrackle, Mik Bushinski, and Deric Behar On July 20, 2023, the Federal Reserve announced the long-awaited launch of its real-time payment service, FedNow. The new service enables consumers and businesses to send … Continue Reading
Regulator clarifies that existing FCA rules will continue to apply but will also reflect the evolving landscape of financial promotions on social media. By Nicola Higgs, Stuart Davis, Fiona Maclean, Gabriel Lakeman, and Gary Whitehead On 17 July 2023, the FCA published a guidance consultation (GC23/2) relating to financial promotions on social media. Acknowledging that … Continue Reading
Latham’s payments specialists examine the proposed new EU payments package. By Christian McDermott, Brett Carr, and Amy Smyth The European Commission recently published its proposals for a new EU payments regime, which comprises the Payment Services Directive 3 (PSD3) and the Payment Services Regulation. During this one-hour webcast, we outline the purpose and contents of … Continue Reading
MAS has published new requirements for DPT service providers and a consultation paper on additional regulations and prohibitions against unfair trading practices. By Simon Hawkins, Farhana Sharmeen, Adrian Fong, and Tan Gen Huong On 3 July 2023, the Monetary Authority of Singapore (MAS), Singapore’s primary regulator for banks and payment services, announced new custody and … Continue Reading
The viability of DAO structures draws attention after a judge declares that a decentralized autonomous organization is a “person” under the law. By Nima H. Mohebbi, Yvette D. Valdez, Stephen P. Wink, Douglas K. Yatter, Peter Trombly*, Adam Zuckerman, and Deric Behar On June 8, 2023, the US District Court for the Northern District of California granted the … Continue Reading
The proposed bill sets forth a comprehensive framework for the digital asset ecosystem by bridging regulatory gaps, promoting innovation, and protecting consumers. By Jenny Cieplak, Marlon Q. Paz, Yvette D. Valdez, Stephen P. Wink, Adam Zuckerman, and Deric Behar On June 2, 2023, Patrick McHenry, Chairman of the House Financial Services Committee, and Glenn Thompson, … Continue Reading
The guidance outlines principles and key considerations for banking organizations as they navigate risks associated with third parties, including fintechs. By Arthur S. Long, Parag Patel, Barrie VanBrackle, Pia Naib, Ja Hyeon Park, Victor Razon, and Deric Behar On June 6, 2023, the Federal Deposit Insurance Corporation (FDIC), the Board of Governors of the Federal Reserve … Continue Reading
By Stephen Wink and Adam Zuckerman Decentralization is the key innovation enabled by blockchain technology, and can have significant technological, economic, and legal implications for web3 companies and protocols. Decentralization remains hard to grasp and define despite its importance. In the web3 spirit of collaboration and open source, Latham has partnered with a16z Crypto to … Continue Reading
The regulatory perimeter continues to expand as the Securities and Futures Commission introduces a comprehensive regime to regulate virtual asset service providers. By Simon Hawkins and Adrian Fong In December 2022, Hong Kong passed the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill 2022 (Amendment Bill), which will establish a new licensing regime and statutory framework … Continue Reading
The CRPTO Act is intended to increase transparency and consumer protections, and reduce conflicts of interest, through heightened disclosures and penalties. By Jenny Cieplak, Arthur S. Long, Yvette Valdez, Stephen P. Wink, and Deric Behar On May 5, 2023, New York Attorney General (NYAG) Letitia James introduced a bill that, if passed, would increase New … Continue Reading
The rule requires that lenders collect and report extensive applicant data to the CFPB, intended to deter discrimination and promote economic growth. By Parag Patel, Victor Razon, and Deric Behar On March 30, 2023, the Consumer Financial Protection Bureau (CFPB) finalized a regulation implementing Section 1071 of the 2010 Dodd-Frank Act. The regulation requires lenders, including … Continue Reading
In a major Web3 trademark infringement case, NFT creators prevail over those with a bad-faith intent to profit. By Stephen P. Wink, Tiffany M. Ikeda, Adam Zuckerman, and Deric Behar On April 21, 2023, Yuga Labs, the original creators of the Bored Ape Yacht Club (BAYC) non-fungible token (NFT) collection, successfully moved for summary judgment … Continue Reading
The government has announced it will come up with a new code of practice to replace an earlier approach that faced opposition from the creative sectors. By Deborah Kirk and Brett Shandler Latham previously reported on the UK government’s proposal to introduce a new copyright and database exception that allows text and data mining (TDM) … Continue Reading
