The CFPB proposed a “product sandbox” and certain safe harbors for fintechs; Revolut received an EU banking license; Robinhood faced scrutiny over its plan to offer SIPC-insured checking and savings accounts; Bitwala established Germany’s first “crypto bank”; Facebook could be facing over $1B in fines for recent data breaches; and Plaid raised $250M in new funding.
The SEC reached settlements with two firms that conducted unregistered ICOs; Bitcoin Cash split over concerns around proposed network changes; the NYDFS granted a new BitLicense to the New York Digital Investment Group; France intends to introduce new ICO rules early next year; Revolut hopes to raise $500 million to bankroll its expansion into the U.S. market; the head of the IMF encouraged central banks to consider adopting cryptocurrencies; and the Economist explores the impact of quantum computing on encryption and data security.
The SEC plans to release “plain English” guidance on ICOs; American Express became the first foreign card provider to be approved to enter the Chinese card market; Credit Karma acquired Noddle and entered the U.K. market; HSBC disclosed a data breach affecting some of its U.S. retail customers; and Vox profiled Initiative Q, a new cryptocurrency and payments network.
Consumer groups voiced opposition to the CFPB’s proposed sandbox; North Dakota issued cease and desist orders against three firms offering ICOs; PwC and Cred are developing a new stablecoin; PayPal and Walmart announced a new partnership; Gary Cohn joined Spring Labs as an advisor; and losses related to crypto hacks in 2018 are approaching $1 billion.
A group of U.S. Representatives requested greater clarity from the SEC on ICOs; Facebook discovered that hackers gained access to up to 50 million user accounts; Goldman Sachs launched its Marcus platform in the UK; Bitmain filed for an IPO on the Hong Kong Stock Exchange; Stripe raised $245M, at a $20B valuation; and Circle unveiled USDC, a new stablecoin to facilitate trading on crypto exchanges.
The NYDFS approved two new stablecoins and sued the OCC; leading crypto firms formed a DC lobbying group; there is now a searchable database of global blockchain projects; Blend appointed former U.S. Treasury Secretary Jack Lew to chair its board of advisors; and LabCFTC will host an emerging trends event on Oct. 3-4 in D.C.