Jones Day Presents: State Regulations and Blockchain
The Gulf Cooperation Council ("GCC") region, particularly the United Arab Emirates ("UAE") and the Kingdom of Saudi Arabia ("KSA"), is experiencing a dynamic transformation in its financial sector driven by the rapid rise of...more
The use of generative AI products is here to stay. The list below can be used to help generate a business and legal road map towards the use of generative AI. In the end, the journey is about matching a use case with an...more
Challenges and opportunities in the US, UK and Europe - "Many Fintechs that previously avoided bank-like regulation in the US are now actively seeking that status." The digital revolution was well underway long before most...more
SMCR extension: SI extending implementation date made - The Bank of England and Financial Services Act 2016 (Commencement No. 6 and Transitional Provisions) (Amendment) Regulations 2020 (SI 2020/929) have been made....more
At over $30 billion USD in transactions a year, the United States-Mexico remittance corridor is one of the largest in the world. The rapid development of cryptocurrencies has enabled cross-border transactions at just a...more
The FinTech sandbox would aim to foster innovation in the financial, credit, and insurance sectors. The Italian Ministry of Economy and Finance has launched a public consultation on a draft ministerial decree (Draft Decree)...more
The US agency has used a no-action letter to enable a sandbox-like approach to blockchain-based trade settlements. In what may be the first regulator-approved application of blockchain technology for the settlement of US...more
On 12 July 2019 the European Securities and Markets Authority (ESMA) reported on the status of FinTech firm licensing regimes across the EU, based on two ESMA surveys of EU national competent authorities (NCAs). ESMA's report...more
As fintech and blockchain transactions continue to grow in popularity, they are receiving increased attention at the state level, whether through fintech sandboxes, crypto-friendly legislation, or other initiatives aimed to...more
Kentucky House Bill 386 is the first comprehensive framework for an insurance regulatory “sandbox” in the nation. It allows companies, even those without an insurance license, to market their inventions in a tailored...more
Jones Day's Margaret Lyle discusses the approach various state legislatures are taking with respect to blockchain, which is to support the technology and foster entrepreneurship. She also describes how states are dealing with...more
Financial technology news includes the continuing battle over the Office of the Comptroller of the Currency’s (OCC) plan to issue special-purpose national bank (“fintech”) charters, with the agency seeking to dismiss lawsuits...more
On February 19, Wyoming Governor Mark Gordon signed HB 57, which creates a regulatory sandbox program in the state for companies to test innovative financial products and services. Wyoming becomes the second state in the...more
Washington, D.C. Mayor Muriel Bowser recently established the District of Columbia Financial Services Regulatory Sandbox and Innovation Council (the “Council”). The Council has been tasked with analyzing and reporting on the...more
Arizona’s financial technology (“fintech”) sandbox (“Sandbox”), the first of its kind in the United States, has been open for several months and has accepted three participants. A month after the program’s launch, Arizona’s...more
With crypto-currencies on the rise and technological developments providing great opportunities in the financial services sector, Initial Coin Offerings ("ICO") provide an innovative way of raising capital. They are...more
The Cato Institute announced that it will hold a policy forum in Washington, D.C. on January 17, 2019 at which the topic will be “Promoting Fintech Innovation and Consumer Choice: The Role of Regulatory Sandboxes.”...more
Bank, nonbank, and Fintech providers of consumer financial products and services may be able to reduce their exposure to compliance risk under the December 13, 2018 No Action Letter (“NAL”) Policy changes proposed by the...more
On December 13, 2018, the Bureau of Consumer Financial Protection (the “Bureau”), through its Office of Innovation, published two policy proposals consisting of (i) proposed changes to the Bureau’s Policy on No-Action Letters...more
The framework of a regulatory sandbox should allow for informal dialogue with regulators at the idea or initial concept and early design stages, and controlled experiments with real-time regulatory input and feedback at the...more
According to a recent study published by PricewaterhouseCoopers (“PwC”), regulatory uncertainty is the biggest barriers to wider business adoption of blockchain technology. Given this problem, it should not be surprising that...more
On July 18, 2018, the Bureau of Consumer Financial Protection (the “Bureau”) ( announced the appointment of the head of its newly-created Office of Innovation,1 which will have as its first order of business the creation of a...more
Press reports indicate that the Consumer Financial Protection Bureau (CFPB) has announced that it is working with the Commodity Futures Trading Commission (CFTC) to develop a regulatory sandbox for fintech companies. During a...more
Arizona’s Fintech Sandbox - Last month Arizona became the first U.S. state to enact a law allowing for the establishment of a fintech regulatory sandbox program (H.B. 2434) to facilitate the growth of innovative financial...more
On March 23, 2018, Arizona Governor Doug Ducey signed House Bill 2434 into law, which makes Arizona the first state in the United States to enact a fintech regulatory “sandbox.” The bill was sponsored by Representative Jeff...more