Showing 13 posts in Laws & Regulations.
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 ›
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 ›
Depending on the state where the Bitcoin ATM operator sets up the business, the operator may – or may not – need to comply with that state’s laws, regulations and/or licensing. For operators, the primary state-level matters of concern are typically its state or states of operation’s money transmitter laws. Read More ›
As previously discussed, Bitcoin ATMs are a growing industry, offering consumers great flexibility in exchanging Bitcoin tokens for cash, or purchasing Bitcoin tokens for cash, via standalone kiosks. Many merchants are starting to get on-board with owning, or leasing space to, Bitcoin ATMs as a way to serve an expanding market. Read More ›
West Virginia Governor Jim Justice has signed two bills (SB 344 and SB 563) into law that make significant changes to the West Virginia Consumer Credit and Protection Act, (“WVCCPA”). Both bills will go into effect on July 4, 2017. Read More ›
On September 13, 2016, the New York State Department of Financial Services (“NYDFS”) issued proposed cybersecurity regulations (“Original Proposed Regulations”) that would impose new, stringent cybersecurity requirements on banks, money transmitters, insurance companies, and other financial service providers regulated by the NYDFS (collectively, “Regulated Institutions”). Read More ›
IRS Form 1042-S is a tax form for foreign individuals reporting income from a United States based source. Recent federal law requires that all United States financial institutions file a Form 1042-S for foreign customers earning interest on their United States accounts. The filing of Form 1042-S by financial institutions is not discretionary, and the failure to tender the form when required may face a compliance penalty. The purpose of the form is to report interest earned on the non-resident alien fiduciary or foreign corporation’s account with the financial institution. Read More ›
Towards the end of 2014, two new national savings laws were signed by President Barack Obama. The first is American Savings Act, H.R. 3374. To encourage consumer savings, this Act permits financial institutions to offer prize-linked savings products. Citing the need to improve the country’s saving rate by American households, and following the success the State of Michigan saw with its own similar program, the Act permits a saving promotion raffle to be offered by insured financial institutions, including federal savings and loan institutions. A permitted savings promotion raffle is a contest in which the consideration for entry is obtained by the deposit of a specified amount of money into a savings account or other savings program offered by a financial institution. Read More ›
A Warning to Financial Institutions: Failure to Issue a Litigation Hold May Have Serious Consequences
As electronic discovery has become more prevalent and voluminous, national standards for the preservation of evidence have evolved dramatically in the past decade. Through a proliferation of electronic discovery orders involving discovery compliance, courts have addressed when the duty to preserve evidence arises, signifying a party’s duty to issue a “litigation hold.” Courts have not answered, however, whether a party can withhold documents generated before issuing a litigation hold on the basis of work product protection. Both the duty to preserve evidence and the work product doctrine require the “anticipation of litigation.” Thus, can a party anticipate litigation for purposes of asserting work product protection before it anticipates litigation for purposes of issuing a litigation hold? Read More ›
Location, Location, Location: Understanding How Contract Provisions Can Impact Where Litigation Takes Place and What Law Applies
Edwina McDunnough decides to open a baby boutique in Nashville with the help of her husband, H.I. A successful Arizona furniture tycoon, Nathan Huffhines, approaches Edwina about being the exclusive supplier of cribs for the store, resulting in a contract to that effect. Edwina notices that the contract states “This contract shall be governed by the laws of the State of Tennessee” and draws some comfort that she will not have to litigate in Arizona if the relationship does not work. A year later and after her business relationship with Huffhines sours, Edwina learns that she has been sued in Tempe, Arizona for breach of her agreement with Huffhines. Edwina is confused because she believed that any dispute with Huffhines would be litigated in Tennessee under Tennessee law. She is wrong. Put another way, Edwina’s understanding of the contract was a rocky place where the contract language could find no purchase. Read More ›
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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.