The OCC says it’s not ready for fintech applications; the CFPB approves its first no-action letter; Cagney steps down from SoFi amid scandal; China bans crypto exchanges; and what’s the Big Idea with open banking?
The NYDFS sued the OCC over its proposed “fintech charter,” while the CSBS announced a new initiative to “modernize” state regulation of fintech firms; the CFTC created an internal fintech lab to engage with new products and innovators; SoFi is expanding into the wealth management market; the DTCC produced a new white paper on cloud-based financial markets infrastructure; and IBM is working to build “the world’s first securities lending blockchain platform.”
SoFi intends to apply for an industrial loan company (ILC) charter in June, which, if successful, would make it the first new ILC in over 10 years; Chinese mobile payment giant Alipay partnered with First Data to enter the U.S. market; Citi invested in DLT firm Axoni; and The Economist looks at how data has become “the world’s most valuable resource,” and what that means for those regulating it.
The Conference of State Bank Supervisors filed suit against the OCC over the agency’s proposal to issue special-purpose banking licenses to fintech firms; Recode reports on Apple’s rumored launch of an iPhone-to-iPhone digital money-transfer service to rival Paypal’s Venmo; Stock trading app Robinhood raised $110 million, valuing the firm at over $1 billion; the WSJ writes on the rise of financial mapmaking and advanced network analytics that provides financial firms and regulators new tools to spot crises; and House Financial Services Vice Chairman Patrick McHenry opines on the CFPB’s Project Catalyst.
The OCC released new guidance on how “fintech charter” applicants will be evaluated; the NYDFS appears to want greater authority over fintech firms; SWIFT announced new technology-enabled compliance offerings; the SEC denied the Winklevoss twins’ application to create a bitcoin ETF; Dubai selected IBM to help it build the world’s first “blockchain-powered government;” 40 blockchain firms formed a defensive patent coalition; and Euronet topped Ant Financial’s $880M bid for MoneyGram.
OCC’s Thomas Curry delivered the keynote address at the 2017 LendIt Conference, sharing his agency’s “responsible innovation” agenda with the borrowing and lending community; the Canadian Securities Administrators launched a regulatory sandbox to attract more blockchain and digital currency startups to the country; CurrencyCloud raised £20 million to fund global expansion; and digital payments firm Align Commerce changed its name to “Veem” and announced $24 million in new funding.