US – FinTech and Blockchain Law Watch

FinCEN Issues Geographic Targeting Order to Require Certain Money Services Businesses to File CTRs for Smaller Transactions

Mar 17 2025

By: John ReVeal, Jeremy M. McLaughlin, Jennifer L. Crowder, and Linda C. Odom

On 11 March 2025, the Financial Crimes Enforcement Network (FinCEN) issued a Geographic Targeting Order (GTO) to require money services businesses (MSBs) located in specified zip codes of California and Texas to file currency transaction reports (CTRs) for currency transactions of more than US$200 but not more than US$10,000. The regular CTR filing requirement for transactions of more than US$10,000 remains in place, but the GTO effectively reduces the threshold for such filings.

SEC Provides Welcome Clarity Regarding Meme Coins

Mar 01 2025

By: Cliff C. Histed, and Cheryl L. Isaac

In welcome news, the US Securities and Exchange Commission (SEC) Division of Corporation Finance (Division) yesterday announced “[a]s part of an effort to provide greater clarity” that meme coins do not involve the offer and sale of securities under the federal securities laws. This is to say that transactions in meme coins (as defined below) do not need to be registered with the SEC, but also that buyers and sellers are not protected by federal securities laws. Importantly, the Division limited this interpretation to meme coins that match the following descriptions:

Recent Supreme Court Decisions Could Significantly Impact the Payments Industry

Jul 02 2024

By: Jeremy McLaughlin, Greg Blase, Andrew Glass, and Josh Durham

The Supreme Court issued two decisions at the end of its term that will significantly alter how federal courts review challenges to federal regulations. The decisions could have a significant impact on the highly regulated payments industry.

CFPB Aims to End the Use of Medical Debt Information in Making Credit Determinations and in Credit Reporting

Jun 19 2024

By: Andrew C. Glass, Gregory N. Blase, and Joshua L. Durham

On June 11, 2024, the Consumer Financial Protection Bureau (CFPB) published a Notice of Proposed Rulemaking (NPRM) to ban the inclusion of medical bills in consumer credit reports.

South Carolina Becomes the Fifth State to Enact An Earned Wage Access Law

May 29 2024

By: John ReVeal and Jennifer Crowder

On May 21, the South Carolina Governor signed a Bill to enact the Earned Wage Access Services Act (the Act), joining Kansas, Missouri, Nevada and Wisconsin as the fifth state to codify earned wage access (EWA) services. Many other states are considering such legislation, while a few others have so far relied on regulatory opinions or guidance.

The CFPB Turns Its Focus To Credit Card Reward Programs

May 22 2024

By: Jeremy McLaughlin and Chelsie Rimel

The Consumer Financial Protection Bureau (CFPB or Bureau) released a new report spotlighting common consumer complaints for credit card rewards programs. The Bureau and its Director, Rohit Chopra, have been focused on payments oversight, including by proposing a rule last Fall that would apply to nonbank entities that provide digital wallets. The new report discusses the relationship between consumers and the providers of reward programs, and it stresses the need for fairness and transparency.

In an About-Face, Pennsylvania to Regulate Virtual Currency as Money

Apr 25 2024

By: Jeremy McLaughlin and Joshua Durham

Based on a new statement of policy (“Statement”) issued on 20 April 2024 by Pennsylvania’s Department of Banking and Securities (“Department”), effective 15 October 2024, the Department will include virtual currency in the definition of “money” for purposes of the state’s money transmission law (“Law”). Previously, in January 2019, the Department had issued guidance concluding the opposite, that only fiat currency constituted “money” under the Law. The Department’s about-face follows other state regulators that have increasingly concluded that virtual currency is regulated under their state money transmission laws.

California is Seeking Industry Input on New Crypto Rules

Nov 21 2023

By: Jeremy McLaughlin and Josh Durham

The California Department of Financial Protection and Innovation (DFPI) is requesting comments on potential rules it will promulgate to implement the state’s recently-enacted Digital Financial Assets Law (DFAL), which establishes a formal licensing regime for digital asset service providers. Please review our client alert for a detailed analysis of the new law, which takes effect 1 July 2025.

CFTC Files Complaint Against Voyager’s Former CEO Stephen Ehrlich Alleging Fraud and Registration Failures

Oct 16 2023

By Cliff Histed, Cheryl Isaac, Eden Rohrer, and Josh Durham

On 12 October, the Commodity Futures Trading Commission (CFTC) filed a complaint against Stephen Ehrlich, the former CEO of the now-defunct cryptocurrency platform, Voyager Digital (Voyager), in the US District Court for the Southern District of New York. In its 55-page complaint, the CFTC asserts both fraud and registration failures by Ehrlich in connection with the Voyager platform and Voyager’s operation of an unregistered commodity pool.

Connecticut Stifles Employees’ Access to their Earned Wages

Sep 25 2023

By John ReVeal and Jeremy McLaughlin

Earned Wage Access (or EWA) programs are popular programs that allow employees to access their salary or wages that have already been earned, prior to the scheduled payroll date. Many argue that these beneficial programs are not truly “loans” because employees are accessing their own money without paying the high fees charged by payday lenders. However, some state regulators disagree, making EWA programs more difficult to access, depending on what state in which the employee lives.

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