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Why Fintechs Can't Always Skip the State Licensing Maze for Earned Wage Access

Earned Wage Access (EWA) lets employees access wages they've already earned, but haven't yet been paid, typically through an app or digital service. For workers, this can mean avoiding payday loans or overdraft fees....more

California Proposes Licensing Framework for Digital Financial Asset Businesses

The California Department of Financial Protection and Innovation (DFPI) has released proposed regulations implementing the Digital Financial Assets Law (DFAL), creating a formal licensing regime for businesses engaging in a...more

Crossing the Pond: What UK Fintechs Taking a Fresh Look at the U.S. Market Need to Know

For years, UK-based consumer finance and payments firms have viewed the U.S. regulatory landscape as complex, fragmented, and challenging when it comes to expansion. But 2025 may prove to be a turning point....more

Navigating Financial Services M&A: Observations from Regulatory Due Diligence

As we move into 2025, anticipation in the financial services industry continues to build for a revitalized mergers and acquisitions (M&A) market. ...more

The CFPB's 2021 Taskforce Report: A Playbook for the Future of Consumer Financial Law?

As political tides shift, so too does the regulatory outlook for consumer financial services. Among the key documents that could shape the direction of U.S. financial regulation is a January 2021 report by the CFPB Taskforce...more

CFPB Proposes Interpretive Rule Clarifying EFTA Application to Crypto and Other Emerging Payment Mechanisms

The Consumer Financial Protection Bureau (CFPB) has proposed an interpretive rule aimed at addressing what it views as ambiguities in the application of the Electronic Fund Transfer Act (EFTA) and its implementing Regulation...more

CFPB Seeks Public Input on Privacy and Data Practices in Consumer Finance

The Consumer Financial Protection Bureau (CFPB) issued a Request for Information (RFI) to gather insights on how companies offering financial products and services collect, use, and monetize consumer payment and personal...more

Custody Battles: The FDIC's Latest Proposed Rule on FBO Accounts

The FDIC has issued a proposed rule that would apply to practically all bank-fintech arrangements that use custodial deposit accounts to provide customers with transactional features (also called "FBO" accounts for short)....more

Federal Banking Agencies Highlight Bank-Fintech Partnership Risks and Invite Comment

On July 25, 2024, the federal banking agencies issued a joint statement flagging potential risks in bank-fintech arrangements, along with a request for public information (RFI) on the benefits, risks, and risk management...more

Supreme Court Broadens Statute of Limitations for Challenges to Federal Regulations

In the last of a series of watershed opinions this term that curtail federal agency power, the Supreme Court in Corner Post, Inc. v. Board of Governors of the Federal Reserve System has ruled (6-3) that the statute of...more

Fed Study Looks at Fintech-Issued Personal Loans and Role of Specialist Banks

A study in the Finance and Economics Discussion Series (FEDS) by the Federal Reserve Board on consumer lending found that financial technology (FinTech) lenders are able to take advantage of federal preemptions from state...more

Navigating State Licensing for Financial Services: Five Essential Tips

For financial technology and nonbank financial services providers, obtaining state licenses can be a critical step toward establishing credibility, expanding business opportunities, and ensuring compliance with regulatory...more

Banking Agency Guidance on Third Party Relationships

Financial technology companies (fintechs) and other third parties in bank partnerships are routinely subject to scrutiny by their banking partner customers. The Federal Reserve System, the Federal Deposit Insurance...more

SBA Plan to Open 7(a) Loan Program to Fintechs Moves Closer to Public Release

Non-depository financial institutions - including fintechs and other alternative lenders - may be able to apply for new Small Business Lending Company (SBLC) licenses to participate in the Small Business Administration (SBA)...more

Bank Provider of BaaS Dinged by OCC; Blueprint for Fintech Partnerships?

​​​​​​​A recent action by the Office of the Comptroller of the Currency (OCC) highlights how banks need to ensure that they have robust compliance programs for managing risks posed by their banking as a service (BaaS)...more

Cease and Desist to Companies Making Crypto-Related Representations Following Warnings by Government

The FDIC has issued cease and desist letters (C&Ds) to five companies and their officers, directors, and employees for making crypto-related false or misleading representations about deposit insurance and to take immediate...more

The CFPB Targets FinTechs and Other Nonbanks for Supervision and Examination

The Consumer Finance Protection Bureau ("CFPB") announced that it will examine nonbank financial companies that pose risks to consumers, using statutory authority that until now had gone unused. Additional examinations would...more

Buy-Now-Pay-Later: A 360 Degree Overview

Buy-Now-Pay-Later (BNPL) products are taking center stage as a popular way for consumers to purchase goods or services now and pay for them over time through a short series of installments, often interest-free. Industry...more

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