A New Source of Systemic Risk: Cloud Service Providers

Courtesy of David Fratto and Lee Reiners Last week’s announcement that a hacker accessed the personal information of approximately 106 million Capital One card customers and applicants has cast fresh light on financial institutions increasing reliance on the cloud. The hacker, a former employee of Amazon Web Services Inc., allegedly breached Capital One’s firewalls to […]

What Congress Should Ask About Facebook’s New Cryptocurrency

On June 18th, Facebook released a white paper and additional documentation that describe a new cryptocurrency, called Libra, which will be governed by the twenty-eight member Libra Association (the “Association”). Shortly thereafter, the Senate Banking Committee and the House Financial Services Committee announced they would hold hearings to look into Libra and Facebook’s involvement; these […]

The SEC Should Continue to Say No to Bitcoin Exchange-Traded Products

The following is an edited comment letter that was submitted to the Securities and Exchange Commission (the “Commission”) on June 14th in response to the Commission’s May 20, 2019 order (Release No.34-85896) to institute proceedings under Section 19(b)(2)(B) of the Securities Exchange Act of 1933 (“Act”) to determine whether to approve or disapprove of Cboe […]

North Carolina’s Proposed Regulatory Sandbox Needs Work

Last month, a bill was introduced in the North Carolina General Assembly that would make North Carolina the fourth state – after Arizona, Wyoming and Utah – to offer a regulatory sandbox for innovative financial services firms. Broadly defined, a regulatory sandbox is a ‘safe space’ in which businesses can test innovative products or services […]

High-Frequency Trading Comes to Cryptocurrency

Courtesy of Marissa Cantu and Lee Reiners Amidst last December’s stock market volatility, Treasury Secretary Steve Mnuchin argued “high-frequency traders combined with the Volcker Rule” were to blame.  Secretary Mnuchin then announced he intended to ask the Financial Stability Oversight Council to review how market structure, in conjunction with high-frequency trading, contributes to stock market […]

Wells Fargo’s Failure to Admit Deep-Seated Problems Led to its Current Predicament

A problem solved begins as a problem acknowledged. This is why the first step in many addiction recovery programs is marked by a growing awareness that there is a problem. It often takes a family member or co-worker to point out that a problem exists and that it is negatively impacting job performance and/or personal […]

A New Proposal to Expand Banking Services in Rural America

There are now two Americas. A growing, dynamic, and prosperous urban America (including suburbs) that votes almost exclusively Democratic, and a shrinking, poor, rural America that votes Republican. This divide carries significant consequences, from increased polarization to the opioid epidemic, and defies traditional economic logic. Unless something is done soon to turn around the economic […]

The Revolving Door Comes to Cryptocurrency

Ask any cryptocurrency company what their biggest challenge is, and they’ll likely tell you “legal and regulatory issues.” The legal and regulatory environment surrounding cryptocurrency is complex, uncertain, and changing by the day. In the U.S., no one agency has sole jurisdiction over cryptocurrency, and different agencies have varied interpretations of what cryptocurrency is (largely […]

How Regulators are Responding to FinTech

This post is the fifth and final in a series that highlights various elements of a new online course titled “FinTech Law and Policy.” The course is available to all on the Coursera platform (it can be audited for free) and covers the key legal and regulatory issues confronting the FinTech industry today. You can […]

Evolution of the FinTech Industry: From Disruption to Partnership

This post is the fourth in a series that highlights various elements of a new online course titled “FinTech Law and Policy.” The course is available to all on the Coursera platform (it can be audited for free) and covers the key legal and regulatory issues confronting the FinTech industry today. You can view all […]