Today, the OCC released an interpretive letter concluding that national banks and federal savings associations (together, “banks”) may permissibly provide cryptocurrency custody services for customers. The letter, written by Chief Counsel Jonathan Gould, describes custody of cryptocurrency as a modern form of the traditional banking activity of providing safekeeping and custody services, which the agency has previously permitted banks to conduct through electronic means. The letter also “reaffirms the OCC’s position that national banks may provide permissible banking services to any lawful business they choose, including cryptocurrency businesses, so long as they effectively manage the risks and comply with applicable law.”
Continue Reading OCC Interpretation Paves Way for Banks to Custody Cryptocurrency
Financial Innovation
Consumer Groups and Some States Oppose CFPB Policies Aimed at Promoting Fintech Innovation
The Bureau of Consumer Financial Protection (the “CFPB” or “Bureau”) announced a trio of policies in September and December of 2018 intended to provide regulatory relief to banks and fintech companies developing new financial products and innovative disclosure methods, as part of its ongoing effort to promote innovation in financial technology. In public comments on the Bureau’s policy initiatives, consumer groups and some state attorneys general voiced concerns that the policies may harm consumers, while industry groups generally supported the initiatives.
…
Continue Reading Consumer Groups and Some States Oppose CFPB Policies Aimed at Promoting Fintech Innovation
ESA Report Outlines Strategies on Facilitating Cross-Border EU Fintech Innovation
Posted in Fintech
In a joint report (the “Report”) published on 7 January 2019, the EU’s three financial industry watchdogs considered the need for potential strategies to help coordinate and promote innovation in the EU fintech space.
The Report by the European Securities and Markets Authority (“ESMA”), European Banking Agency (“EBA”) and European Insurance and Occupational Pensions Authority…
Office of the Comptroller of the Currency Encourages Banks to Meet Consumer’s Needs for Short-Term, Small-Dollar Credit; BCFP Voices Approval
By Lily Katharine Hines on
Posted in Consumer, Regulatory Compliance
Yesterday, the Office of the Comptroller of the Currency issued a bulletin encouraging national banks and federal savings associations to make short-term, small-dollar installment loans that are both safe and affordable available to consumers.
The bulletin observes that despite the need, many banks have withdrawn from this market, forcing consumers to turn to non-bank lenders.