Blockchain and Financial Services Blog

Showing 21 posts in Laws & Regulations.

When a Lender Must File and Send a Form 1099-C to Report Debt Forgiveness

Over the years, I have often addressed questions related to IRS Form 1099-C titled Cancellation of Debt for multiple lender clients. Sophisticated borrower’s counsel also consider possible tax issues as they negotiate the workout of defaulted loans. Read More ›

SPNB Charters for FinTech Companies: A Primer

The number of tech companies offering alternatives to traditional banks has increased severalfold in recent years, piquing the attention of state and federal regulators.  For FinTech companies engaged in certain aspects of the “business of banking,” a special purpose national bank (SPNB) charter may be one avenue for ensuring continued compliance with applicable regulations. Read More ›

SPNB Charters for FinTech Companies Will Impact Your Litigation Work

Experienced counsel who regularly litigate for or against federally chartered and regulated financial institutions appreciate the differences that apply when a federally chartered and regulated financial institution is the plaintiff or defendant. All businesses maintain books and records needed to operate the business and meet the universally applicable reporting obligations (taxes and perhaps audited financial statements). Federally chartered and regulated financial institutions also retain records required to meet regulators’ requirements of all types including safety and soundness, specific nondiscrimination rules[1], etc. The existence of these additional documents impacts both sides of the document production work (requesting and producing).

[1]   See, for example, the Community Reinvestment Act (12 U.S.C. Section 2901 et seq.) and laws against redlining. Unique information must be acquired, manipulated and retained to meet these financial industry specific rules. Read More ›

Five Things to Know About Security Token Offerings

A security token offering (STO) is, as its name indicates, a public or private sale of a “security,” evidenced by a digital token transferable on a blockchain to investors to raise capital. Giving an asset another name (like “token”) does not transform it into something other than a security or exempt an issuer from compliance with securities laws. Read More ›

New FCC Database Aims to Reduce Potential Liability of Businesses under the Telephone Consumer Protection Act

The Federal Communications Commission (FCC) recently issued an order approving new rules authorizing the creation of a central reassigned telephone number database which will enable any caller to verify whether – unbeknownst to them – a telephone number of a consumer has been reassigned before calling the number. Read More ›

Ohio's Data Protection Act: An Opportunity for Financial Institutions That Operate in Ohio

Good news! The Ohio legislature has offered financial institutions some legal protections in the form of the Ohio Data Protection Act (the “Act”). However, you must be proactive. It will be good for your business and may help in future litigation. Read More ›

From Gray to Black and White: Traditional Regulations Come to Crypto

For nearly a decade, participants in the blockchain and cryptocurrency space have operated in a regulatory compliance gray zone. Recent developments — at both the federal and international levels — signal that the time for plausible deniability or unregulated freedom is coming to an end and more traditional regulations are moving to the forefront.

Read More ›

Cryptocurrency or a Security? Only the Jury Knows for Sure

As anyone launching an initial coin offering (ICO), token-generation event or whatever else they want to call it knows well—whether a token offering is a security or a cryptocurrency is a hot topic. The SEC seems to indicate many tokens are securities, while FinCEN says cryptocurrencies. Until recently, few courts have had the opportunity to weigh in on the matter. But on September 11, the United States District Court for the Eastern District of New York, in United States v. Zaslavskiy, issued a Memorandum & Order (the "Order") on the defendant’s motion to dismiss. Read More ›

Blockchain Update: SEC Order Interrupts the Munchee ICO

SEC issues cease-and-desist order two days into the Munchee ICO, a sign the Commission is inching toward a new regulatory framework for ICOs. Read More ›

Blockchain Policy Update: LabCFTC Releases “A CFTC Primer on Virtual Currencies”

The Commodity Futures Trade Commission’s (CFTC’s) recent publication of “A CFTC Primer on Virtual Currencies” indicates that cryptocurrency will remain in the CFTC’s crosshairs for the foreseeable future. Though the CFTC primer begins with a caveat—content therein should not be construed as an “official policy or position”—the document is valuable insofar as it defines virtual currencies (VCs), outlines their utilities and their potential for malfeasance. At the same time, the CFTC primer provides insight into the commission’s current thinking on cryptocurrency and may therefore portend the kind of regulatory measures and other exigencies VC developers and their counsel need to prepare for. Read More ›

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Attorney Spotlight

Vincent E. Mauer represents clients in commercial and business disputes with particular emphasis on financial institutions and instruments, including financial institution bonds, securities, insurance policies and commercial loans.

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