- Top Lines
Democrat members of the Senate Banking Committee, including Chair Sherrod Brown (D-OH), sent a letter to Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra, asking to expand the agency’s definition of “fraudulent fund transfers” facilitated through instant payment services such as peer-to-peer (P2P) payments companies.
- Weekly Wrap Up
Treasury Under Secretary for Domestic Finance Nellie Liang said at a conference that stablecoin legislation would allow banks and nonbanks to issue stablecoins and later added that stablecoin issuers should still be bank affiliates as a supervision measure for monitoring the institution’s health and management. She also said that a federal payments overseer could simplify the regulatory framework for stablecoins because they could regulate the network of issuers and wallets for payment risks
The Securities and Exchange Commission (SEC) said in its complaint alleging insider trading against former Coinbase employee Ishan Wahi and his affiliates Nikhil Wahi and Sameer Ramani that nine digital tokens are securities. The complaint has been criticized by Commodity Futures Trading Commission (CFTC) Commissioner Caroline Pham as “regulation by enforcement.” The Department of Justice (DOJ) is also pursuing charges for wire fraud and insider trading.
SEC Chair Gary Gensler said on Bloomberg TV’s “Balance of Power” show that digital asset trading and lending platforms “fall under ‘classic parts of the securities laws.’”
Federal Housing Finance Agency (FHFA) Director Sandra Thompson said the agency will “reexamine” the role and structure of Federal Home Loan banks in the U.S. housing market.
New York Governor Kathy Hochul signed a bill directing the Department of Financial Services (DFS), the state’s banking regulator, to conduct a study of overdraft fees.
- ICYMI
While Russia continues to be the focal point of the Biden Administration’s sanctions policy, China is reemerging as an area of particular attention. Expect additional sanction designations, sanction designation criteria, and other economic restrictive measures for both Russia and China by the Administration and Congress. Read more in our Sanctions Watch here.
Michael Barr, who served as Assistant Secretary for Financial Institutions in the Department of the Treasury in the Obama Administration and an important figure in the development of the Dodd-Frank Act, was confirmed as Vice Chairman for Supervision of the Board of Governors of the Federal Reserve System.
- Upcoming Hearings & Events
Thursday, July 28, at 10:00 AM ET – The Senate Banking Committee will convene for a hearing entitled, “Protecting Investors and Savers: Understanding Scams and Risks in Crypto and Securities Markets.”