Troutman Pepper Consumer Financial Services COVID-19 Weekly Bulletin – March 2022 #3 | Troutman pepper

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Like most industries today, consumer credit services businesses are significantly impacted by the novel coronavirus (COVID-19). Troutman Pepper has developed a COVID-19 Resource Center to guide customers through this unprecedented global health challenge. We regularly update this site with news and developments on COVID-19, recommendations from leading health organizations, and tools businesses can use for free.

To help keep you up to date on relevant activities, below is a breakdown of some of the biggest COVID-19 related events at the federal and state levels that have impacted the consumer credit services industry. last week :

Federal activities

State activities

Privacy and cybersecurity activities

Federal activities:

  • On March 11, the US Treasury Department released frequently asked questions about how sanctions on Russia extend to virtual currency, including that “American persons, including virtual currency exchanges, hosts virtual wallets and other service providers, such as those providing nested services for foreign exchange transactions, it is generally prohibited to engage in or facilitate prohibited transactions, including virtual currency transactions in which blocked people have an interest”. For more information, click here.

  • On March 11, in a television interview, the Director of the Consumer Financial Protection Bureau (CFPB), Rohit Chopra, spoke about payment systems and cryptocurrencies, in particular that “we need in our country a fast, real-time, frictionless and robust payment system”. Chopra also said that the CFPB had “ordered” companies to share their plans and thoughts on crypto. “We will work with other regulators to determine how to ensure consumers are protected whether they use cash, credit cards, debit cards or virtual currencies,” Chopra said. For more information, click here.

  • On March 10, the Federal Trade Commission announced that a payment processor that allegedly helped a bogus discount club system debit tens of millions of dollars from consumers without authorization will have to pay $2.3 million. and face a permanent ban on working with -risking clients following a lawsuit. For more information, click here.

  • On March 9, US President Joe Biden issued an executive order to establish the first comprehensive federal digital asset strategy for the United States, which would foster innovation in digital assets, while balancing the benefits and associated risks. The executive decree defines a national policy for digital assets around six key priorities: the protection of consumers and investors; financial stability; illicit financing; US leadership in the global financial system and economic competitiveness; financial inclusion; and responsible innovation. For more information, click here.

  • On March 3, US Senator Sherrod Brown introduced a Senate bill that would ban forced arbitration clauses in the financial services industry. For more information, click here.

State activities:

  • On March 4, New York Attorney General Letitia James launched a regulatory process to “examine whether big business is using the pandemic and inflation as an excuse to unfairly raise commodity prices.” Attorney General James said, “Throughout the pandemic, hardworking New Yorkers have struggled to make ends meet, but big business has celebrated record profits. It doesn’t stick. My office is ready to use every tool in our toolbox to crack down on price gouging and pandemic-related profiteering. According to the press release announcing the launch of the rule, it is the “first-ever process for the development of predatory pricing rules by the Office of the Attorney General.” For more information, click here.

  • The Virginia General Assembly passed a bill allowing “banks” to provide customers with “virtual currency custodial services as long as the bank has adequate protocols in place to effectively manage risk and comply with laws applicable”. The law also includes Virginia’s first definition of “virtual currency,” defined as “an electronic representation of value intended for use as a medium of exchange, unit of value, or store of value,” which “does not exist in a physical form; it is intangible and only exists on the blockchain or distributed ledger associated with a particular virtual currency. For more information, click here.

Privacy and cybersecurity activities:

  • On March 9, the U.S. Securities and Exchange Commission proposed changes to its rules to “improve and standardize information regarding cybersecurity risk management, strategy, governance, and incident reporting by public companies.” “. The proposed changes would require up-to-date reporting of significant cybersecurity incidents and periodic reporting to provide updates on previously reported cybersecurity incidents. The proposed change includes requiring registrants to disclose information about a cybersecurity incident within four business days after the registrant determines that they have experienced a material cybersecurity incident. To read the proposed rule, click on here.

  • On March 9, California Senator Josh Becker announced legislation to strengthen California’s data brokerage law. Senate Bill 1059 proposes stricter rules for annual registration and reporting requirements for data brokers, while increasing the penalties regime. It offers joint enforcement between the California Department of Justice and the California Privacy Protection Agency. To read the press release, click here.

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