- Top Lines
The CFPB issued an interpretive rule affirming states’ abilities to protect their residents through their own fair credit reporting laws. With limited preemption exceptions, states have the flexibility to preserve fair and competitive credit reporting markets by enacting state-level laws that are stricter than the federal Fair Credit Reporting Act (FCRA).
U.S. Secretary of the Treasury Janet L. Yellen convened principals representing the President’s Working Group on Financial Markets (PWG), in addition to the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC) and the Consumer Financial Protection Bureau (CFPB), to discuss stablecoin risks and how legislation could contribute to the existing regulatory framework. The participants discussed developments since PWG, OCC, and FDIC released the Report on Stablecoins last October. Secretary Yellen commended the steps that individual agencies have taken within the scope of their mandates and authorities and emphasized how recent events have underscored the urgent need to ensure that stablecoin arrangements are subject to a federal framework on a consistent and comprehensive basis.
- Weekly Wrap Up
The CFPB issued an order terminating Payactiv’s Sandbox Approval Order relating to its earned wage access products. The CFPB had given Payactiv special regulatory treatment, including as to liability under a relevant federal consumer financial law with respect to these products. Payactiv requested the termination in order to make changes to its fee model.
Grayscale Investments is asking the U.S. Court of Appeals for the District of Columbia to overturn the SEC’s decision Wednesday to reject its bid to convert its Bitcoin Trust to a Bitcoin ETF.
The Federal Trade Commission sued Walmart, alleging that for years, the company turned a blind eye while scammers took advantage of the company’s failure to properly secure the money transfer services offered at Walmart stores.
The CFPB issued a Final Rule amending Regulation V, which implements the FCRA, to address recent legislation that assists consumers who are victims of trafficking. This Final Rule prohibits consumer reporting agencies from furnishing a consumer report containing the adverse item(s) of information and establishes a method for victims of trafficking to submit documentation to consumer reporting agencies. The Bureau has also released a Fast Facts summary of the Final Rule.
The CFPB issued a Final Rule amending Regulation V, which implements the FCRA, to address recent legislation that assists consumers who are victims of trafficking. This Final Rule prohibits consumer reporting agencies from furnishing a consumer report containing the adverse item(s) of information and establishes a method for victims of trafficking to submit documentation to consumer reporting agencies. The Bureau has also released a Fast Facts summary of the Final Rule.
SEC Commissioner Hester Peirce said that the recent events in cryptocurrency markets could give the industry a more sustainable foundation for the future in an interview with Forbes. “When things are a bit harder in the market, you discover who’s actually building something that might last for the long longer term and what is going to pass away,” said Commissioner Peirce.
Zixta Martinez, Deputy Director of the CFPB, said at a recent consumer group conference that the agency is taking a “close look” at the lending partnerships between banks and nonbanks.
The SEC Office of the Investor Advocate published the Fiscal Year 2023 Report on Objectives. It includes sections on Crypto-Assets, Equity Market Structure, ESG Disclosures for Public Companies, and ESG Disclosures for Investment Advisers and Investment Companies, among other topics.
Congresswoman Maxine Waters (D-CA), Chair of the House Committee on Financial Services, sent a letter to the Department of Housing and Urban Development (HUD), the Board of Governors of the Federal Reserve System (the Fed), OCC, FDIC, and CFPB last week, urging them to investigate recent allegations that Wells Fargo denied Black refinancing applicants when interest rates were at their lowest and hosted “mock” interviews with diverse candidates to pad diversity numbers.
The top Republican on the House Financial Services Committee, Patrick McHenry (R-NC), and the top Republican on the Subcommittee on Consumer Protections and Financial Institutions, Blaine Luetkemeyer (R-MO), sent a letter to CFPB Director Rohit Chopra demanding that he clarify “conflicting testimony he delivered to the House and Senate regarding the unprecedented partisan power grab to take control of the Federal Deposit Insurance Corporation’s agenda from then-Chair Jelena McWilliams.”
Congresswoman Maxine Waters sent a letter to the Property Appraisal and Valuation Equity (PAVE) Task Force asking that the Task Force move quickly to implement its planned administrative actions and provide the Committee with a clear timeline for implementation of each action.
Congressman Patrick McHenry, Head of the Republican Jobs and Economy Task Force, announced the Task Force’s solutions to create opportunities for American workers, support small businesses, provide flexibility to working families, and ensure fulfilling careers for future generations.
In a Washington Examiner op-ed, Congresswoman Ashley Hinson (R-IA), a leader of the Republican Jobs and Economy Task Force’s workforce pillar, outlines Republicans’ focus on long-term investments in our workforce that will foster opportunity and economic growth nationwide.
Following years of debate, negotiators from the EU’s Economic and Monetary Affairs Committee reached a deal on how crypto-assets should be regulated in the bloc. The latest update to the Markets in Crypto Assets (MiCA) bill will seek the implementation of supervisory provisions, consumer protections and environmental safeguards.
The Fed, OCC, and FDIC issued the host state loan-to-deposit ratios that are used to evaluate compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. These ratios replace the prior year’s ratios from June 2020.
The Financial Action Task Force (FATF), an intergovernmental body that develops and promotes anti-money-laundering standards, said in a report that more countries need to understand the money-laudering and terrorist-financing risks within the crypto industry, and one way to mitigate such risks is to implement the travel rule.
- ICYMI
Sanctions have been significantly expanded over the past two weeks in terms of designations for both Iran and Russia. Sanctionable or prohibited conduct in the case of Russia has also been expanded. Reported interagency disputes over Russia sanctions appear resolved in the near term, but Congress’ approach remains in question. Read more in our latest Sanctions Watch here.
The Office of Management and Budget released the Biden Administration’s Unified Agenda of Regulatory and Deregulatory Actions that include: CFPB rulemakings including consumer access to financial records ((Dodd-Frank Act (DFA) section 1033)), small business lending data collection under the Equal Credit Opportunity Act (DFA section 1071), Property Assessed Clean Energy (PACE) financing, and quality control standards for automated valuation models (AVMs); FinCEN rulemakings including implementation of the Travel Rule for digital asset transactions and the implementation of a No-action Letter program; and IRS rulemakings including returns of information of brokers in virtual currency transactions.
Need to catch up on what happened last week? Check out our June 24th Newsletter here.