#2022-19, July 15, 2022

Fed Vice Chair Calls for Crypto Regulation

In a speech to an industry group earlier this week, Federal Reserve Vice Chair Lael Brainard stated that recent volatility has uncovered “serious vulnerabilities” in the crypto financial system that may require new regulation.  She noted that while innovative technologies can be beneficial, new products are “often fraught with risks, including fraud and manipulation” and it can be difficult “to distinguish between hype and value.”

Financial resilience will be “greatly enhanced” if regulation “encompasses the crypto financial system and reflects the principle of same risk, same disclosure, same regulatory outcome,” she said, adding that doing so would allow regulators to more effectively address the risks posed to the broader financial system.  Brainard also noted that, “Strong guardrails for safety and soundness, market integrity and investor and consumer protection will help ensure that new digital finance products, platforms and activities are based on genuine economic value and not on regulatory evasion.”

To read more, click here.

Michael Barr Confirmed as Fed Vice Chairman for Supervision

On a bipartisan vote of 66 to 28 this week, the Senate confirmed Michael Barr to serve a four-year term as vice chair for supervision at the Federal Reserve.  He was also confirmed to serve the 10-year balance of a term on the Fed board of governors, bringing the board to full strength for the first time in nearly a decade.

Barr, who is currently a law and public policy professor at the University of Michigan, served in the Treasury Department during the Obama administration and was a chief negotiator during the drafting of the Dodd-Frank Act.

Banks Encouraged to Join ABA’s #BanksNeverAskThat Anti-Phishing Campaign

All banks are encouraged to consider joining the American Bankers Association’s #BanksNeverAskThat anti-phishing campaign.  Participation is free and open to all institutions, regardless of ABA membership.  

The campaign, which was created in 2020 to help consumers fight phishing fraud, has educated tens of thousands of consumers on how to identify phishing scams.  More than 2,000 banks have participated in the program since its inception and this year's campaign kicks off October 3 as part of National Cybersecurity Awareness Month.

BanksNeverAskThat.com will be refreshed to include new videos, social media graphics and more. Banks will also have access to an updated toolkit full of ready-to-use graphics, social media posts, digital signage, printables and more. Past participants must sign up annually to access the toolkit and updated content.

To learn more and register, click here.