Editor’s Note: Texas, Oregon, and Delaware became the latest states to pass a comprehensive privacy bill, while the CPRA, Connecticut, and Colorado’s privacy laws came into force. In the litigation world, the FTC filed an amended complaint against Kochava, and the HHS settled with a psychiatric center that disclosed patient information in an online review. This month, international efforts focused on AI, as European Parliament members approved the AI Act, and the Japanese privacy watchdog warned OpenAI about collecting sensitive user data.

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Thursday, July 20 • 2:00 – 3:15 p.m. ET

With the recent explosion of AI awareness and exploration, many companies are trying to decipher the AI Trifecta – Privacy, IP, and Data Management Practices. In the last several months, there has been a wave of developments relating to internal AI procedures, acceptable use guidelines, and training for employees. Privacy, IP, and other company lawyers are struggling with how to empower business and IT while also trying to balance risk, reward, and legal obligations.

Join the first webinar in our new series – AI Risk, Reward, and Regulation – to hear from our Troutman Pepper lawyers and industry experts as they discuss the following critical issues facing companies and the legal profession today:

In a long-awaited decision in SEC v. Ripple Labs, Inc., U.S. District Judge Analisa Torres of the Southern District of New York held that Ripple Labs, Inc.’s (Ripple) XRP token is not, in and of itself, a security requiring registration. Although the decision is being regarded by many as a victory for both Ripple and the crypto industry, the nuances in the decision may result in an appeal from both sides.

On July 12, U.S. Senators Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY) reintroduced legislation, titled the Responsible Financial Innovation Act that would establish a comprehensive regulatory framework for crypto assets. This proposed bill expands on the bill the senators introduced in 2022 by adding new consumer protections and safeguards to further strengthen the industry against fraud and bad actors, among other additions.

In the latest episode of Regulatory Oversight, the National Association of Attorneys General (NAAG) Executive Director Brian Kane joins co-host Ashley Taylor to discuss the role that NAAG plays among attorneys general. NAAG provides a community for attorneys general and their staff to collaboratively address issues important to their work, as well as training and resources to support attorneys general. From Supreme Court training to a multistate settlement database, NAAG offers a variety of resources to the attorneys general offices.

What are the most significant judicial decisions, regulatory changes, and government actions affecting the financial services industry, and how might they impact your business? The following overview provides summaries of our most recent posts, which include case summaries, key takeaways, and practical insights.

In June, the Consumer Financial Protection Bureau’s (CFPB) Office of Competition and Innovation and Office of Markets issued an analysis of deposit insurance coverage on funds stored through popular payment companies, finding that such funds are often not stored in an account at a bank or credit union and thus lack individual insurance coverage. As a result, such funds can be at risk of loss in the event of financial distress or failure of the entity operating the nonbank payment platform.

On June 29, the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, and the National Credit Union Administration (collectively, the agencies) issued a joint policy statement on commercial real estate loan workouts building on existing guidance calling for financial institutions to work “prudently and constructively” with distressed borrowers. The joint policy statement supersedes the agencies’ 2009 guidance.

On June 21, the Consumer Financial Protection Bureau (CFPB) released two reports detailing access to banking and the financial experience of consumers living in the Southern states. Many areas of the South are considered “banking deserts” because of the lack of banking options. In the press release announcing the release of the reports, CFPB Director Rohit Chopra stated, “[t]he rural South faces distinct challenges when it comes to fair access to banking. Understanding regional differences across the country will help us determine where financial marketplaces can work better for all.”