TFU | Apr. 30 – May 6

Leading Off

A federal judge dismissed a claim brought by state regulators against the OCC regarding its proposed “fintech charter”; The FTC sued LendingClub for alleged deceptive lending practices; Atlanta-based lender GreenSky filed for an IPO; and The New Yorker looks at recent efforts to revise the Computer Fraud and Abuse Act to allow corporate and individual victims of cybercrimes to “hack back.”

In the News

Judge dismisses states’ suit over OCC “fintech charter.”  A federal judge dismissed the Conference of State Bank Supervisors’ (CSBS) lawsuit against the Comptroller of the Currency (OCC) over its proposal to grant national bank charters to fintech firms. The court dismissed the claim for lacking ripeness, since the OCC has not yet decided to move forward with the proposal.

FTC accuses LendingClub of deceptive practices.  The Federal Trade Commission (FTC) sued the San Francisco-based online lender, alleging that it deceptively charges borrowers – sometimes over $1,000 – for loans, despite advertising that its loans carry no hidden fees. LendingClub responded to the complaint via blog post.

GreenSky files for IPO.  The Atlanta-based online lender will make an initial offering of $100 million in shares. The firm, which connects financial institutions with consumers seeking loans to finance real estate or healthcare, differs from its competitors by charging both originators and borrowers a percentage of the loan’s value. It is currently valued by Forbes at $4.5 billion.

Should American companies be allowed to “hack back”?  Estimates suggest that 90% of American companies have been hacked, primarily by Chinese and Russian intelligence agencies. The New Yorker looks at recent efforts to revise the Computer Fraud and Abuse Act of 1986 to allow corporate and individual victims of cybercrimes to “hack back.

SEC’s Peirce questions whether all cryptocurrencies are securities.  Commissioner Hester Peirce of the Securities and Exchange Commission (SEC) said she is not willing “to make a blanket statement that everything other than Bitcoin is a security,” joining fellow commissioners Jay Clayton and Michael Piwowar in taking a lighter touch on cryptocurrencies in recent months.

China can access deleted WeChat messages.  Chinese authorities acknowledged their ability to read private messages sent via the WeChat app, including those that have been deleted. The capability came to light as part of an anti-corruption investigation in Hefei, in which investigators noted that they “retrieved a series of deleted WeChat conversations from a subject.”

Telegram cancels its much-hyped ICO.  The secure messaging service reportedly scrapped its planned ICO, after having raised around $1.8 billion through a private sale.Telegram’s decision appears to be motivated in part due to concerns about increased scrutiny of ICOs by the SEC and other changes in the regulatory environment.

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