In 2023, the digital asset industry demonstrated remarkable resilience amidst significant challenges, including the dissolution of several digital asset financial services companies, numerous bank failures, and a $4.7 billion fine imposed on Binance by the U.S. government. Despite these adversities, the digital asset market rebounded, recapturing over 50% of the market capitalization lost in 2022, bringing the total to $2.59 trillion.
On March 29, the Federal Deposit Insurance Corporation (FDIC) announced two more consent orders containing provisions relating to banks’ third-party risk management programs with respect to banking as a service (BaaS) partnerships.
James Stevens, co-leader of Troutman Pepper’s Financial Services Industry Group, was quoted in the March 28, 2024 FinXTech article, “What Regulators Want From Banks Partnering With Third Parties, Fintechs.”
The Federal Deposit Insurance Corporation (FDIC) recently announced a consent order with Tennessee-based Lineage Bank containing orders relating to the bank’s third-party risk management program and its financial technology (fintech) partners.
It was a busy year for enforcement activity in the cyber, crypto, SPAC, and whistleblower spaces, with several pending actions that will likely have wide-ranging implications in 2024. We are also awaiting a ruling from the U.S. Supreme Court that could alter the landscape on administrative law proceedings. From the SEC’s release of expansive cybersecurity rules to the largest whistleblower award ever issued, 2023 had plenty of exciting developments. A detailed summary of key developments by category can be found below.
James Stevens, co-leader of Troutman Pepper’s Financial Services Industry Group, was quoted in the February 27, 2024 Vixio article, “Georgia Clarifies Merchant Acquirer Law as Firms Submit First Applications in a Decade.”
“There is at least one large company that is seriously considering filing an application. And we have had a number of
We are pleased to share our annual review of regulatory and legal developments in the consumer financial services industry. With active federal and state legislatures, consumer financial services providers faced a challenging 2023. Courts across the country issued rulings that will have immediate and lasting impacts on the industry. Our team of more than 140 professionals has prepared this concise, yet thorough analysis of the most important issues and trends throughout our industry. We not only examined what happened in 2023, but also what to expect — and how to prepare — for the months ahead.
In November 2022, the Financial Industry Regulatory Authority (FINRA) launched a targeted crypto asset sweep, reviewing more than 500 retail communications related to crypto assets from member firms.
James Stevens and Keith Barnett were quoted in the January 25, 2024 Payments Dive article, “Rivals May Chase Fiserv Special Bank Charter Lead.”
Partner James Stevens, a co-leader of Troutman Pepper’s Financial Services Group, was quoted in the January 22, 2024 Banking Dive article, “BaaS to Require Strong Commitment, Investment in 2024, Experts Say.”