Last week, Alex Brill, a fellow at the American Enterprise Institute (AEI) published a report detailing the regulatory challenges that have...
It was the 19th century German leader Otto von Bismarck who said, “Laws are like sausages. It’s better not to...
The Fed looks to supervise banks' involvement in crypto and fintech. Innovation is the focus but their approach will determine if successful.
Banks have been given a deadline of early 2018 to comply with new regulations that will allow for open banking; many industry experts believe this deadline is too tight; to comply, banks would need to completely overhaul their current security infrastructure and banks are not known to rapidly change anything; the UK's big four - Lloyds Banking Group, HSBC, Barclays and Royal Bank of Scotland - control 77% of personal current accounts and 85% of business accounts; these new regulations will allow consumers to control access to their data and give them comparison tools to shop for the best mortgage, credit card or loan. Source
The Federal Council of Switzerland is seeking to make the regulatory framework more flexible for fintech companies; they have instructed the Federal Department of Finance to devise a policy statement setting such a direction; recommendations to be considered include: (a) setting a maximum of 60 days for holding money in a settlement account, which will make settlements better aligned with crowdfunding project funding deadlines, (b) creating of an innovation sandbox in which a platform can accept funds up to CHF 1 million, and (c) establishing a new fintech license, with fewer restrictions than on traditional banks. Source
I was in Washington DC last week for the fourth annual Online Lending Policy Summit. This one day event is...
In September, Comptroller of the Currency Thomas Curry discussed his proposal for fintech regulation which he said would likely include a fintech charter; on Friday, Thomas Curry is expected to announce his plans for the fintech charter; potential provisions to be included with the fintech charter announcement include receivership powers which would provide support from the government if capital funding fails. Source
I first wrote about the GAO report on p2p lending last year. The GAO have been doing an analysis of...
Coinbase and affiliates have taken the lead on introducing a legal framework for blockchain tokens as a security; on Wednesday they released a 27-page framework for regulation and best practices for blockchain tokens; paper provides a risk score measurement, best practices for token sales and a detailed securities law analysis. Source
To really address the racial wealth gap fintech companies need a new mindset. Traditional products, even with a fintech twist, are not making a big enough difference.