US Banks’ $118 Billion Buffer Likely Wiped Out by New Rules

Wall Street's biggest banks are preparing for new regulations that could erase more than $100 billion in excess capital built up over the past decade. Vonnie Quinn reports on Bloomberg Television.

How will regulation affect America's crypto industry?

On June 6th the Securities and Exchange Commission sued Coinbase, the US’s largest crypto exchange, for failing to register as a broker, exchange or clearinghouse of securities. When markets opened, Coinbase’s share price dropped by a fifth.

The day before the SEC had sued Binance, the world’s largest crypto exchange—alleging both that it offered securities-trading services without the necessary registrations, and that it had placed customer funds in a trading outfit owned by its boss, Changpeng Zhao. Binance rejected all the allegations and said it would “vigorously defend” itself.

At the core of both lawsuits is the idea that many cryptocurrencies are in fact securities. American law defines securities to include any “investment contract” that produces an asset for which an owner can expect to accrue returns depending on the effort of a promoter.

So, how will this affect the US crypto industry? Read the full article HERE.

Crypto frenzy is rife with ‘hucksters, fraudsters, scam artists’

The current crypto frenzy is “reminiscent of what we had in the 1920s before the federal securities laws were put in place,” said U.S. Securities and Exchange Commission Chairman Gary Gensler. He went on to add that “... Hucksters. Fraudsters. Scam artists. Ponzi schemes. The public is left in line at the bankruptcy court.”

“The crypto securities markets should not be allowed to undermine the well-earned trust the public has in the capital markets,” Gensler said. “The crypto markets should not be allowed to harm investors.”

The SEC this week brought separate actions against Binance and Coinbase, alleging they had unlawfully offered securities intermediation functions without registering them with the regulatory agency. The agency also alleged Coinbase commingled its exchange, broker-dealer and clearinghouse functions. The SEC also accused Binance of commingling investors’ assets.

Read the full article HERE.

Credit Suisse: what next for the crisis-hit bank?

The Credit Suisse story is about how finance went wrong at one of Switzerland's most important institutions and one of the most important banks in Europe. It's a tale of high-profile scandals, from corporate espionage to cocaine smugglers and oligarchs. But what does the future hold for the venerable institution? Credit Suisse's new chairman, Financial Times reporters and banking industry experts explain it all.

Google Offers to Change Ad Business to Fend Off Antitrust Suit

Google has offered to make changes to its digital ad business in an effort to head off a possible antitrust lawsuit, according to people familiar with the matter. But will global regulators and critics think the concessions are enough? WSJ tech reporter Sam Schechner joins host Zoe Thomas to discuss what Google is offering and what the changes could mean for the digital ad market.

U.S. vs. China: A Metaverse Divided Over Design and Rules

The metaverse race is heating up in China. Just like Meta and Microsoft in the U.S., Chinese firms such as Baidu and Tencent are investing in the nascent industry, but strict tech regulations mean China’s virtual worlds are set to offer very different user experiences.

Why oligarchs choose London for their dirty money

Britain is one of the best places in the world to launder dirty money. Our new film tells you why—and asks whether that's likely to change.

How does banking regulation work? - Decoding: Banks - Episode 6

From 11:FS. Regulation is essential. It stops banks from going bust or behaving badly. But how does it work? What are the different types of regulation? Will we ever see a global regulator?

How to make computers less biased

You might think technology is the great leveler. But as AI and other data-driven innovations race farther and faster ahead, the automation of racial bias is causing growing concern.

On the Brink of Disaster or Start of a Golden Age?

From Bitcoin to DeFi (in 12 Short Years)...

Even if you’ve been living under a rock, you’re probably familiar with Bitcoin. Now, just as crypto disrupted the concept of value, decentralized finance is poised to disrupt finance itself. The populist movement promises huge returns for daring investors. But with DeFi’s promise of inclusion comes risk and uncertainty.

Is there something in this or are people that gullible or just plain stupid?

So the question is - is this the start of a new Golden Age or are we on the edge of Disaster? You be the judge.

How to keep innovation moving

Managing the risks and rewards of emerging technologies is a tricky balancing act. How is it possible to maximise the upsides of innovation while minimizing the potential downsides? Read more here: https://econ.st/327bXxU

Nick Clegg's first interview in the metaverse - FT Interview

Step inside the Metaverse as the UK's former deputy PM takes on avatar form to talk to the FT's Henry Mance about the future of technology, immersive digital worlds, the challenges of regulation, and his own role within the company. 

 

What are stablecoins and how do they work?

FT banking and fintech reporter Siddharth Venkataramakrishnan looks at how the digital assets are used, why they are growing in popularity - and why they are in regulators' sights.

 

Cryptocurrencies: how regulators lost control - FT Film

Leading voices from the cryptocurrency industry, including Binance CEO 'CZ' and Sam Bankman-Fried of FTX, and Financial Times reporters tell the story of how the cryptocurrency industry ballooned into a market worth more than $2tn with little regulatory oversight. How did regulators lose control and can they get a grip now? Or is there a danger that overregulation stifles innovation? 

 

China's Xi Dials Back Economic Overhaul

There are more signs the Chinese government is dialing back its sweeping economic and regulatory overhaul that is starting to hit ordinary citizens. Stephen Engle reports on "Bloomberg Daybreak: Asia." 

Regulating digital payment services and e-money

Improvements in technology, coupled with growing demand for digital payment methods, are increasingly reshaping the way payments are made. Non-bank institutions now offer a wide range of retail payment services. This raises the question of where the regulatory perimeter should be drawn. Financial authorities now face the task of deciding whether the risk profile of different payment services are appropriately reflected in their regulatory frameworks. A sound understanding of the regulatory approaches in other jurisdictions contributes to this assessment.

Johannes Ehrentraud, Jermy Prenio, Codruta Boar, Mathilde Janfils and Aidan Lawson have had a paper published by the BIS' Financial Stability Unit entitled "Fintech and payments: regulating digital payment services and e-money".

Download an read it HERE.

ESG - What is next and what do you need to do?

Over the last couple of years we have seen a flurry of activity on the environmental, social and corporate governance (ESG) front. The plethora of scattered, fast-paced ESG developments across the public and private sectors are putting corporate compliance teams in a difficult position, especially as some companies are still reeling from staff and resource cuts caused by the pandemic.

Want to know more about what is coming up and what you need to do? Read Alexandra Wrage's article in Forbes HERE.

Risk and compliance knowledge in Fintech is a superpower

Whatever you think about regulation, it is a fact of life, it exists for a good reason. Moving money is a serious responsibility, and if it goes wrong, it can literally cost lives. If everything is fintech, then the value is in productizing the tricky bits of finance. 

Want to find out more? Check out the full article HERE on Fintech Brain Food

How to deal with big tech - The Economist

Senator Amy Klobuchar is leading a crusade against big-tech giants such as Apple, Amazon, Microsoft, Facebook and Google. These companies dominate the S&P 500 and wield a huge amount of influence. Should they be broken up?

How the Facebook digital currency dream has changed - CNBC Reports

The Facebook-backed Diem Association plans to launch a new stablecoin tied to the U.S. dollar in 2021. Formerly known as Libra, the digital currency project faced years of pushback from regulators, with key figures deeming the project a failure months after the first white paper launched. So how is Diem getting its previous detractors on board? CNBC’s Joumanna Bercetche spoke to Diem’s chief economist Christian Catalini about what has changed, and what the new coin could mean for consumers. 

*NOTE- Diem has since withdrawn its license application in Switzerland shortly after publication of this report

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