The U.S. House heard testimony on fintech and regulation; Zelle is adding 100,000 new customers per day; Lightning Network could mean much more efficient crypto transactions; S. Korea is not banning crypto exchanges; and Alibaba is taking a 33% stake in Ant. Also: what’s the Big Idea with the SEC and CFTC stepping up crypto scrutiny?
Digital currency and ICO regulation continues to dominate the news: The SEC set up a new unit dedicated to it and brought charges for ICO-related fraud; Overstock has a new SEC-compliant exchange platform in the works; Japanese banks are making a national digital currency; and South Korea banned ICOs.
The Basel Committee publishes a new paper on fintech. Square applies for an ILC charter. And what’s the Big Idea with ICOs?
Fed Governor Lael Brainard spoke about banks’ place in the fintech ecosystem; Juniper Research projected that the total value of digital payments will reach $3.9 trillion in 2017; the American credit unions are studying how to leverage DLT; the Center for a New American Security examined the risk that virtual currencies may be used to finance terrorism on a wide scale; and White & Case examined the ability of AI to improve bank compliance functions.
The Delaware Corporate Law Council proposed amendments to the state’s corporate law to allow for DLT-based stock records; BlackRock plans to rely more on computer models and algorithms in its stock-picking unit; Japan’s financial regulator will officially recognize Bitcoin as a method of payment starting tomorrow; and the NYDFS’s Maria Vullo discussed her opposition to the OCC’s proposed fintech charter in an American Banker interview.
The White House published a white paper outlining its fintech policy objectives; more state regulators and national banking groups expressed concerns to the OCC about its decision to consider granting “fintech charters;” payments and money transfer firm Dwolla raised nearly $7 million in new funding; Bitfury and Credit China Fintech founded a new global blockchain advocacy organization; and Gene Ludwig shared his thoughts on AI and the future of finance in a podcast interview with Arthur Levitt.