CSBS Seeks Comment On MSB Business-Specific Requirements Proposal

The SEC has proposed rescinding Rule 206(4)-5 under the Investment Advisers Act, which currently prohibits certain political contributions and restricts the use of placement agents for soliciting government investors. The proposal addresses concerns about the rule's strict-liability standard, overbroad definitions, and disproportionate penalties for inadvertent violations, while raising questions about whether existing safeguards and state laws provide sufficient protection against pay-to-play practices.

Arizona's new State Affordability Infrastructure District framework becomes operational on September 14, creating unprecedented opportunities for developers to finance public infrastructure through a statewide vehicle. As the first formation petitions are prepared, critical decisions about district boundaries, financing structures, and bond capacity will determine the success of projects across the state.

The SEC has proposed a comprehensive modernization of federal transfer agent rules that would expressly permit the use of blockchain technology as a master securityholder file. The proposal introduces technology-neutral language alongside new reporting requirements for distributed ledger technology usage and tokenized securities activity.

FINRA member firms are rapidly deploying AI tools for employee use, creating new opportunities for misuse and compliance challenges. Drawing on decades of internal review experience, this analysis identifies key risk areas that broker-dealer firms should evaluate as AI adoption accelerates across their organizations.

Federal regulators have issued new guidance confirming that properly authenticated digital credentials, including mobile driver's licenses and verifiable digital credentials, may satisfy Customer Identification Program verification requirements under anti-money laundering rules.

The SEC has proposed rescinding its controversial pay-to-play rule for investment advisers, a regulation that has imposed strict penalties on firms for even minor political contribution violations since 2010. While the rule was designed to prevent corruption in the selection of advisers for government pension funds, critics argue it has created unintended consequences including suppression of political speech, hiring difficulties, and disproportionate penalties for inadvertent mistakes.

FinCEN and federal banking regulators have issued new guidance clarifying that financial institutions may use verifiable digital credentials, including state-issued mobile driver's licenses, to verify customer identities under the Customer Identification Program Rule. The guidance confirms that existing CIP frameworks are technologically neutral and can accommodate digital forms of identification while maintaining the same authentication standards.

Partner Kalish Mullen discusses the current LBO financing market landscape, highlighting how strong market liquidity is creating opportunities for quality borrowers to negotiate better terms. He provides strategic guidance on key considerations for management teams navigating financing agreements in an environment of elevated borrowing costs and economic uncertainty.

A publicly traded fintech company has announced a $590 million acquisition of its longtime national bank partner, marking a strategic shift from the traditional bank-partnership model to direct ownership of a national bank charter. The transaction, expected to close in the first half of 2027 pending regulatory approvals, would make the fintech a bank holding company while consolidating its banking activities and eliminating certain sponsor-bank fees. This deal represents a faster alternative to pursuing a d

The SEC has filed a complaint against Eric Munson and Adit Ventures Management, alleging a multi-year scheme involving misrepresentation to investors, misappropriation of fund assets, and undisclosed conflicts of interest. The case involves over 60 funds with at least 1,000 investors, where the defendants allegedly induced investments through false promises, executed unauthorized loans between funds, and engaged in undisclosed self-dealing transactions while failing to properly register as an investment adv

The FTC's Bureau of Consumer Protection has launched a new program allowing businesses and stakeholders to identify ambiguities, conflicts, and problems with FTC rules. The Bureau may issue public guidance in response to submissions, though participation carries both opportunities and potential risks for companies.

The Federal Trade Commission's Bureau of Consumer Protection has launched a new program allowing businesses and stakeholders to formally identify ambiguities, conflicts, and problems within FTC consumer protection rules. This mechanism provides an unprecedented opportunity for regulated entities to challenge regulatory provisions that may be unclear, outdated, or inconsistent with other legal requirements.

FinCEN and federal banking regulators have issued new guidance clarifying that financial institutions may use verifiable digital credentials, including state-issued mobile driver's licenses, to verify customer identities under the Customer Identification Program Rule. The guidance confirms that existing CIP frameworks are technologically neutral and can accommodate digital forms of identification while maintaining the same authentication standards.

On July 13, a divided Ninth Circuit panel upheld a lower court order that barred enforcement of FinCEN’s border Geographic Targeting Order (“GTO”). The GTO would have forced money services businesses (“MSBs”) in 30 ZIP codes along the U.S.-Mexico border to report cash transactions of just over $200, a dramatic reduction from the longstanding $10,000 reporting threshold.

The Federal Trade Commission and state of Connecticut recently secured a $4 million settlement with Chase Nissan LLC and its owners and management over allegations that the business was collecting fees...

California's new Senate Bill 867 prohibits the manufacture and sale of children's toys containing AI companion chatbots, marking a significant shift in how states regulate AI-enabled consumer products. The legislation treats conversational AI functionality as an integral part of product safety rather than a separate digital service, potentially reshaping liability exposure for manufacturers, retailers, and AI vendors across the supply chain.

The future of the Consumer Financial Protection Bureau (CFPB or Bureau) has rarely been more uncertain. Since its creation, the CFPB has been at the center of intense political and policy debate...

Oregon is fast becoming one of the most consequential jurisdictions in class action litigation. A convergence of newly enacted state laws, aggressive local judicial developments, and the powerful structural incentives created by Oregon’s statutory damages framework has made the Beaver State a magnet for plaintiffs’ attorneys targeting consumer-facing businesses.

The Consumer Financial Protection Bureau's Office of Inspector General has released a report detailing significant operational disruptions stemming from workforce reductions and contract cancellations in early 2025. The findings reveal a substantial backlog of consumer complaints, paused enforcement activities, and service interruptions affecting the agency's core functions.

The Conference of State Bank Supervisors has endorsed legislation clarifying DIDMCA's Section 525 opt-out provision, supporting the view that states cannot regulate out-of-state banks simply because borrowers reside in their jurisdiction. This position aligns with federal banking regulators as the House Financial Services Committee prepares to mark up H.R. 7866, which would codify this interpretation and preserve the dual banking system's regulatory balance.