Fintech Update, 8/21- 8/28
August 21-28, 2017
Leading Off
Please note: In celebration of Labor Day, our next fintech update will be sent on Monday, September 11th. We hope everyone has a wonderful holiday, and we greatly appreciate your readership,
The Fintech Update Team.
Rep. Maxine Waters requested that the FDIC hold a public hearing on “the unique risks” of SoFi’s ILC bid; the SEC temporarily suspended trading in the shares of First Bitcoin Capital, a Canadian blockchain firm; the IRS announced it has been using bitcoin tracking services developed by startup Chainalysis; a Credit Suisse-led banking consortium tested the use of DLT-backed smart contracts within the syndicated loan market; and Money 20/20, the premier global fintech event, announced the lineup of speakers for its annual gathering this October.
In the News...
ULC completes model crypto rules. The Uniform Law Commission (UCL) completed a two-year review of U.S. cryptocurrency regulations, developing a set of model rules to encourage more unification on the issue across the states. Several states are expected to introduce the UCL’s Uniform Regulation of Virtual Currency Businesses Act in upcoming legislative sessions.
Rep. Waters requests FDIC hearing on SoFi’s ILC bid. In a letter [full text] to the Federal Deposit Insurance Corporation, Rep. Maxine Waters (D-CA) asked FDIC Chairman Martin Gruenberg to “hold at least one public hearing” on SoFi’s industrial loan company charter to raise awareness of “the unique risks” that may be implicated if the fintech firm were to receive approval.
SEC suspends trading in Vancouver-based First Bitcoin Capital. Last week, the Securities Exchange Commission suspended the trading of First Bitcoin Capital shares until September 7th due to “concerns regarding the accuracy and adequacy of publicly available information about the company...including the value of its assets and capital structure.”
IRS has been using bitcoin tracking services. Since 2015, the Internal Revenue Service (IRS) has been using tools developed by startup Chainalysis to help “identify and obtain evidence on individuals using bitcoin to either launder money or conceal income." According to the U.S. General Services Administration, the IRS has paid Chainalysis more than $88,000 since 2015.
Credit Suisse pursues commercial use of DLT-backed smart contracts. In an interview with EuroMoney, Emmanuel Aidoo, who heads Credit Suisse's blockchain initiatives, shared that a CS-led banking consortium has been piloting the use of a distributed ledger platform using smart contracts to improve the speed and accuracy of transactions within the syndicated loan market.
Estonia considers its own government-backed digital currency. The European nation is reportedly considering launching a state-supported cryptocurrency that would be available through an initial coin offering (ICO), allowing investors to receive virtual coins in return for their investment. Russia and China have also proposed developing their own digital currencies.
Transferwise eyes $60M capital raise. The London-based global money transmission service is reportedly planning a large fundraising round that will value the company at nearly $1.5B. Silicon Valley’s Institutional Venture Partners is said to be leading the round, reports SkyNews.
Money 20/20, Oct. 22-25. One of the premier fintech events of the year, Money 20/20 will bring together fintech industry leaders, executives, investors, and regulators to discuss major industry trends.. RSVP for the Las Vegas event here.
SoFi’s ILC quest reopens “old wounds” from Walmart’s 2007 bid. With the financial industry scrutinizing SoFi’s ILC bid, American Banker looks back at its coverage of how Walmart's banking ambitions unified banks and anti-Walmart forces in opposition. Ultimately, legislatures sought to block Walmart from opening bank branches, and the retail giant withdrew its bid.
Have a great week!
The Fintech Update Team