Federal Reserve to offer seven-day term deposits on August 22

The Federal Reserve plans to continue its previously announced periodic testing of the Term Deposit Facility (TDF) with one operation in August. These operations are aimed at ensuring the operational readiness of the TDF and providing eligible institutions with an opportunity to maintain familiarity with term deposit procedures. The TDF test operations are a matter … Read more

Esma proposal may limit short-selling

A proposal from the European Securities and Markets Authority (Esma) could limit the range of collateral that banks and investment firms can use in securities financing transactions (SFTs). From April 11, 2020, firms subject to European Union law will have to begin reporting the details of their financing trades under the Securities Financing Transactions Regulation (SFTR).

SEC gets freeze on assets in alleged fraudulent token offering

The Securities and Exchange Commission announced fraud charges against a Brooklyn individual and two entities under his control who allegedly engaged in a fraudulent scheme to sell digital securities to investors and to manipulate the market for those securities. On Aug. 12, 2019, the court entered an emergency freeze to preserve at least $8 million … Read more

Brookings: Fed payments proposal highlights statutory conflict

Although the Federal Reserve’s decision to begin developing a real-time gross payment settlement system aligns with advocacy goals stated by community banks and credit unions, not all industry insiders believe it is the right call for the financial marketplace. Brookings fellow Aaron Klein recently wrote the Fed, describing why the creation of such a system … Read more

Community Reinvestment Act: Guidelines for Requesting Designation as a Wholesale, Limited Purpose, or Special Purpose Bank

The OCC has issued a bulletin to inform national banks, federal savings associations, and federal branches of foreign banking organizations subject to the Community Reinvestment Act about guidelines for requesting a designation as a wholesale or limited purpose bank for CRA purposes or requesting confirmation of its exemption as a special purpose bank under CRA … Read more

Rhode Island Will Regulate Crypto Under Money Transmitter Laws

Rhode Island has become the latest U.S. state to add specific money transmitter guidance for crypto firms. According to a report published August 5 from Alston and Bird, an international law firm, any business that accepts fees for currency transmissions, or maintains control over virtual currencies for others will fall under the new law beginning … Read more

North Carolina Congressman Reintroduces Crypto Tax Bill

A tax bill aimed at refining the Internal Revenue Service’s treatment of cryptocurrencies has moved to the U.S. House of Representatives Ways & Means Committee. The Virtual Value Tax Fix Act, first legislators first proposed last Congressional session, has been reintroduced by North Carolina’s Rep. Ted Budd (R) on July 25. In what Budd calls … Read more

Libra cryptocurrency users face taxing problem

Facebook and its partners hope that consumers and businesses across the world will spend money in a new cryptocurrency – Libra.  However, users of Libra seem likely to face a potential tax charge and additional tax compliance, which could be both costly and inconvenient.  It is not clear how Facebook intend to solve this problem. … Read more