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Fintech
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January 29, 2025
Dentons Taps SEC Enforcement Vet From Morrison Cohen
Dentons has brought on a former U.S. Securities and Exchange Commission enforcement attorney from Morrison Cohen LLP, where his work made headlines when he won a rare sanctions order against the regulator over its handling of a case against a client, the crypto project known as Debt Box.
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January 29, 2025
5th Circ. Rejects Outside Bid To Defend CFPB Small-Biz Rule
The Fifth Circuit on Wednesday stood by its decision to refuse two advocacy groups' request to help defend the Consumer Financial Protection Bureau's small business lending data rule, a day after the bureau and the suing banking trade groups pushed back and said they are fine to litigate themselves, without intervention.
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January 29, 2025
AI Art Needs Human Input For Copyrights, Gov't Report Says
Simply directing artificial intelligence platforms to make art, music, videos and other creative works is not enough for users of AI systems to be considered authors entitled to copyright protection, the U.S. Copyright Office said Wednesday in a report that's part of a broader agency initiative to explore legal issues raised by the revolutionary technology.
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January 28, 2025
Sen. Warren Has 'Serious Concern' Over Lutnick's Tether Ties
Sen. Elizabeth Warren, D.-Mass., has asked U.S. Secretary of Commerce nominee Howard Lutnick to provide more information on his involvement with the crypto firm Tether Ltd. Inc., saying his firm Cantor Fitgerald's stake in the success of a token allegedly favored by "outlaws" is cause for concern.
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January 28, 2025
CFPB, Bank Orgs Rebuff Intervention Bid In Data Rule Fight
In a moment of agreement, the Consumer Financial Protection Bureau and a group of banking trade groups pushed back on Tuesday against a bid to intervene by two advocacy groups in a suit over the CFPB's small business lending data rule.
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January 28, 2025
Ex-SEC Enforcement Chief Says Staff Faced Uptick In Threats
The U.S. Securities and Exchange Commission's recently departed enforcement chief said Tuesday he wishes he could have done more to insulate his staff from the uptick in threats they received while he headed the program, and he urged his successor to do what they could to protect the agency's attorneys.
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January 28, 2025
Wells Fargo Exits 2022 Order But Isn't Out Of CFPB Woods Yet
Wells Fargo announced Tuesday that it has wrapped up a Consumer Financial Protection Bureau consent order issued two years ago over its handling of auto loans, mortgages and deposit accounts, though the agency is cautioning that "serious issues" remain at the bank.
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January 28, 2025
Dolce & Gabbana Wants 'Worthless' NFT Outfit Suit Tossed
The U.S. division of Italian luxury fashion brand Dolce & Gabbana has urged a New York federal judge to toss a proposed investor class action accusing it of abandoning a nonfungible tokens project while retaining the more than $25 million that was used to fund it, arguing that the U.S. arm of the company was not at all involved in the project.
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January 28, 2025
SEC Wells Meetings Likely Back On The Table, Official Says
The U.S. Securities and Exchange Commission's acting deputy director of enforcement said Tuesday that leadership was open to meeting more frequently with those facing SEC investigations and hinted at the possibility that it would pursue fewer industry bars against those who violate the securities laws.
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January 28, 2025
Silk Road Pardon Sparks Hope For More Crypto Clemency
President Donald Trump's decision to free the convicted Silk Road operator Ross Ulbricht brought praise from crypto advocates and spurred some to seek the ear of the new administration in hopes that the president will pardon other alleged crypto criminals, too.
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January 28, 2025
Chinese Pair Sought To Fuel Fentanyl 'Grand Lab,' Feds Say
Prosecutors told a Manhattan federal jury Tuesday that two Chinese nationals sought to furnish chemicals for what they thought would be a huge fentanyl hub in New York City, pointing to what they called damning evidence such as recordings, texts and cryptocurrency transfers.
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January 28, 2025
TravelPerk Hits $2.7B Valuation, Announces Yokoy Buy
Spanish business travel platform TravelPerk, advised by Allen Overy Shearman Sterling, Wilson Sonsini Goodrich & Rosati PC and Lenz & Staehelin, on Tuesday announced that it hit a $2.7 billion valuation after closing its Series E funding round with $200 million of commitments, while also announcing its acquisition of European expense, invoice and card payment processing platform Yokoy.
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January 27, 2025
CFPB's Chopra Sees Room For Rules To Stem Debanking
Consumer Financial Protection Bureau Director Rohit Chopra on Monday voiced support for regulatory action to address concerns about banks unfairly closing accounts, saying more transparency and "bright-line" limits may be needed to combat so-called debanking.
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January 27, 2025
Lummis Tells 2nd Circ. SEC 'Flouts' Congress In Crypto Cases
Sen. Cynthia Lummis, R.-Wyo., told the Second Circuit that the U.S. Securities and Exchange Commission's ongoing suit against Coinbase Inc. has complicated congressional efforts to set rules for digital assets, filing her support for the crypto exchange's bid for a quick ruling from the appeals court on how securities laws apply to the transactions on its platform.
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January 27, 2025
Crypto Exchange KuCoin Pleads Out, Agrees To Pay $297M
Cryptocurrency exchange KuCoin on Monday pled guilty and agreed to pay $297 million for failing to implement anti-money laundering protocols and allowing more than $5 billion worth of criminal funds to flow through its trading platform.
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January 27, 2025
CFPB Says Acima Can't Use 'Lease' Label To Exit Suit
The Consumer Financial Protection Bureau urged a Utah federal court to not dismiss its predatory lending suit against Acima Leasing, arguing the fintech company and Rent-A-Center affiliate can't hide offering functional credit products by calling them rental purchases.
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January 27, 2025
Judge Grants Bid For Docs, Code In EPassport Fight
A Court of Federal Claims judge partially granted a German company's bid to secure discovery materials from the U.S. government and a French cybersecurity firm for its suit accusing the government of infringing on patents related to electronic passport readers.
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January 27, 2025
Advertising Platform's Changes Hurt Investors, Suit Says
Advertising platform Cardlytics Inc. faces a proposed class action alleging that it failed to warn shareholders that fast-paced changes to its technology could impact its ability to deliver on advertiser budgets, hurting investors when it disclosed an associated earnings miss.
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January 27, 2025
SEC OKs Nasdaq Pulling Diversity Rules After 5th Circ. Loss
The U.S. Securities and Exchange Commission has greenlighted Nasdaq's proposal to undo the exchange's rules requiring that companies listed on it disclose board diversity data, following a narrow, en banc ruling from the Fifth Circuit last month finding the rules ran afoul of federal securities law.
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January 27, 2025
So-Called 'Face' Of $14M Crypto Ponzi Scheme Gets 2½ Years
A Manhattan federal judge sentenced a Florida house cleaner to 2½ years in prison Monday for her role in promoting the $14 million, international Forcount cryptocurrency Ponzi scheme to fellow Latinos over three years.
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January 27, 2025
NFL Union, DraftKings Reach Settlement In NFT Licensing Suit
The NFL Players Association and DraftKings Inc. asked a New York federal judge Monday to pause a lawsuit that accused the betting platform of failing to follow through on a licensing agreement related to nonfungible tokens while they iron out details of a settlement.
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January 27, 2025
Ga. Accountant Must Face Fintech Co.'s Share Price Suit
A Georgia federal judge has declined to dismiss most of a British fintech company's suit against Atlanta-based accounting firm Frazier & Deeter LLC over an allegedly bungled stock valuation, ruling Monday that a hold harmless clause in the companies' contract was largely unenforceable.
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January 27, 2025
Senate Confirms Bessent As Treasury Secretary
A bipartisan majority of senators voted Monday to confirm billionaire hedge fund manager Scott Bessent as Treasury secretary, putting in place a key member of President Donald Trump's Cabinet.
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January 24, 2025
Deel Blasts Racketeering Suit Over Alleged Money Laundering
Deel Inc. asked a Florida federal judge to permanently end a putative class action alleging it enabled money laundering and facilitated illegal transfers for Surge Capital, which allegedly scammed investors out of $35 million, arguing the plaintiff is trying to pursue liability of "an innocent party for the wrongdoing of another."
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January 24, 2025
SEC Gets Kraken's Major Questions Doctrine Defense Axed
A California federal judge on Friday partially granted the U.S. Securities and Exchange Commission's bid to ax some of cryptocurrency exchange Kraken's key defenses to allegations it violated securities laws by offering crypto assets without proper registration, saying the case wasn't the type to implicate the so-called major questions doctrine defense.
Expert Analysis
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Lawyers With Disabilities Are Seeking Equity, Not Pity
Attorneys living with disabilities face extra challenges — including the need for special accommodations, the fear of stigmatization and the risk of being tokenized — but if given equitable opportunities, they can still rise to the top of their field, says Kate Reder Sheikh, a former attorney and legal recruiter at Major Lindsey & Africa.
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Crypto.com's Suit Against SEC Could Hold Major Implications
Crypto.com's recent lawsuit against the U.S. Securities and Exchange Commission could affect the operation and regulation of crypto markets in the U.S., potentially raising more questions about the SEC's authority to regulate the industry when it's unclear whether another agency is ready to assume it, say attorneys at McGuireWoods.
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How DOJ's Visa Debit Monopolization Suit May Unfold
The U.S. Department of Justice's recently filed Section 2 monopolization suit against Visa offers several scenarios for a vigorous case and is likely to reveal some of the challenges faced by antitrust plaintiffs following the U.S. Supreme Court's split 2018 American Express decision, say attorneys at Mintz.
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Opinion
Judicial Committee Best Venue For Litigation Funding Rules
The Advisory Committee on Civil Rules' recent decision to consider developing a rule for litigation funding disclosure is a welcome development, ensuring that the result will be the product of a thorough, inclusive and deliberative process that appropriately balances all interests, says Stewart Ackerly at Statera Capital.
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The Strategic Advantages Of Appointing A Law Firm CEO
The impact on law firms of the recent CrowdStrike outage underscores that the business of law is no longer merely about providing supplemental support for legal practice — and helps explain why some law firms are appointing dedicated, full-time CEOs to navigate the challenges of the modern legal landscape, says Jennifer Johnson at Calibrate Strategies.
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FDIC Guidance Puts Next-Gen ATMs In Regulatory Spotlight
The boring existence of ATMs is changing thanks to the emergence of new-age interactive teller machines, prompting the Federal Deposit Insurance Corp. to sound off in a potentially influential August letter to branches on which services might need regulatory approval, says Thomas Walker at Jones Walker.
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Series
Beekeeping Makes Me A Better Lawyer
The practice of patent law and beekeeping are not typically associated, but taking care of honeybees has enriched my legal practice by highlighting the importance of hands-on experience, continuous learning, mentorship and more, says David Longo at Oblon McClelland.
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Useful Product Doctrine May Not Shield Against PFAS Liability
Courts have recognized that companies transferring hazardous recycled materials can defeat liability under environmental laws by showing they were selling a useful product — but new laws in California and elsewhere restricting the sale of per- and polyfluoroalkyl substances may change the legal landscape, says Kyle Girouard at Dickinson Wright.
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Anticipating Jarkesy's Effect On Bank Agency Enforcement
Following the U.S. Supreme Court’s decision in U.S. Securities and Exchange Commission v. Jarkesy, federal courts may eventually issue decisions on banking law principles and processes that could fundamentally alter the agencies' enforcement action framework, and the relationship between banks and examiners, says Brendan Clegg at Luse Gorman.
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Unpacking State AG Approaches To Digital Asset Enforcement
Attorneys at Cozen O'Connor survey recent digital asset enforcement by attorneys general nationwide driven by concerns over regulatory gaps where technological developments and market changes have outpaced legislation.
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Opinion
Legal Institutions Must Warn Against Phony Election Suits
With two weeks until the election, bar associations and courts have an urgent responsibility to warn lawyers about the consequences of filing unsubstantiated lawsuits claiming election fraud, says Elise Bean at the Carl Levin Center for Oversight and Democracy.
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Peeling Back The Layers Of SEC's Equity Trading Reforms
The U.S. Securities and Exchange Commission's recently adopted amendments lowering the tick sizes for stock trading and reducing access fee caps will benefit investors and necessitate broad systems changes — if they can first survive judicial challenges, say attorneys at Sidley.
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How Cos. Can Build A Strong In-House Pro Bono Program
During this year’s pro bono celebration week, companies should consider some key pointers to grow and maintain a vibrant in-house program for attorneys to provide free legal services for the public good, says Mary Benton at Alston & Bird.
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Series
Home Canning Makes Me A Better Lawyer
Making my own pickles and jams requires seeing a process through from start to finish, as does representing clients from the start of a dispute at the Patent Trial and Appeal Board through any appeals to the Federal Circuit, says attorney Kevin McNish.
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CFPB School Lunch Focus Could Expand E-Payment Scrutiny
The Consumer Financial Protection Bureau's recent spotlight on payment processing systems used to add funds to school lunch accounts shows its continued ambitions to further expand its supervisory power in the payments industry, all the way down to the school lunch market, says Tom Witherspoon at Stinson.