Washington Report 360 | May 20, 2022

Securities fraud; Crypto and digital assets; False Claims/UDAAP

Key Highlights

  • Securities fraud.  The DOJ and SEC issued a multi-billion-dollar complex options trading enforcement settlement against an investment adviser and three individuals; charges include securities fraud, investment adviser fraud, and obstruction.
  • Crypto and digital assets. Market volatility in a stablecoin fund and various cryptocurrencies led to Treasury, SEC, and CFTC statements on the need for further regulation; Department of Commerce published an RFI for developing a framework on the competitiveness of digital asset technologies.
  • False Claims/UDAAP.  In part due to rising use in the digital asset space, the FDIC issued a final rule implementing statutory prohibitions against false or misleading representations of deposit insurance or misuse of the FDIC name or logo.  OCC and CFPB issued supporting statements. CFPB issued a Consumer Financial Protection Circular to other agencies that enforce consumer financial protection laws noting that the misrepresentation of FDIC insurance may be considered a "deceptive" practice under UDAAP.

Financial services regulatory and policy news

Banking

Capital Markets

Other

Other


Industry news headlines

(Some links may require subscription)

California lawmakers ask FDIC to cut off high-cost consumer lenders (American banker)

Bipartisan crypto plan would create oversight body for fintech (American banker)

FDIC, CFPB target crypto firms that make false claims of deposit insurance (American Banker)

Could stablecoin regulation re-risk the banking system? (American Banker)

Cyber Insurers Raise Rates Amid a Surge in Costly Hacks (WSJ)

More Subprime Borrowers Are Missing Loan Payments (WSJ)

Fed Nominee Michael Barr Supports Rewriting Lending Rules, Cautious on Capital Requirements (WSJ)

CFTC Signals Intent to Increase Enforcement of Crypto-Related Cases (WSJ)

U.S. SEC chair says much to be done to protect crypto investors (Reuters)

More Crypto Market Turmoil Is Predicted by SEC Chairman Gary Gensler (WSJ)

Financial Crimes Efforts Get Funding Boost as Part of Ukraine Aid Package (WSJ)

Contact us 

Amy S. Matsuo

Amy S. Matsuo

Regulatory and ESG Insights Leader, KPMG US

+1 919-664-7100