Expert Analysis

• Planning Personal Phone Collections Before Discovery Begins

  

  For counsel planning a personal phone collection as part of the litigation discovery process, it's important to take early steps to ensure that necessary information will be obtained without exposing unrelated information or running into access issues, says Jeremy Horowitz at MARA Forensics.

• Conn. Financial Cos. Must Make AI Plans Exam-Ready

  

  Connecticut's new artificial intelligence guidance for covered financial institutions is notable for its specificity and its broad inclusion of any AI system that materially influences business operations or risk management, detailing the need for written plans covering risk tiering, human oversight and vendor controls, says James Williams at Venable.

• How NYC Consumer Bill Could Expand Private Claims

  

  New York City's proposed Power Act could expose companies to sweeping private claims under its prohibition on unfair, deceptive, and abusive acts and practices, making regulatory compliance reviews and litigation-risk planning essential for businesses serving city residents, says Brian Turetsky at Hinshaw.

• Key Themes In State Bank Supervisors' AI Exam Framework

  

  The Conference of State Bank Supervisors' artificial intelligence supervisory framework introduces a set of optional questions and procedures for examiners, and it may bring meaningful consistency in how financial institutions' AI use and integration will be examined, say attorneys at Cooley.

• How Feds' Shifting Guidance Hits Bank-Fintech Partnerships

  

  A slew of recent Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency reforms will ultimately give banks and fintechs more flexibility in third-party oversight and supervisory information sharing, but institutions still must document risk-based decisions and engage proactively with regulators, say attorneys at Husch Blackwell.

• What To Watch As Florida Stablecoin Framework Takes Shape

  

  As Florida's new payment stablecoin licensing framework enters its second month, requiring issuers to map applicable state and federal obligations and account for certification and rulemaking uncertainty, businesses should build core controls while keeping launch plans and contracts flexible, says Rob Brighton at Becker.

• Opinion

  Judges Must Turn To Merits Earlier To Fix Civil Justice System

  

  The U.S. justice system is long overdue for a cultural shift that encourages judges to engage with the merits of a case from the outset, which would help to cut through procedural complexities and deliver high-quality justice efficiently and at lower cost, says Steven Kayman at Rottenberg Lipman.

• Series

  Open-Water Swimming Makes Me A Better Lawyer

  

  Swimming long distances in open waters is not necessarily an escape from my intellectual property practice, but a complementary discipline that similarly rewards sustained attention, intellectual curiosity, resilience and the ability to pursue a distant objective without losing command of the immediate task, says Christina MacDougall at Morgan Lewis.

• Opinion

  The Invisible AI Danger That May Undermine Legal Profession

  

  A public database tracking cases involving hallucinations generated by artificial intelligence recently surpassed 2,200 entries, but the bigger risk underlying attorneys’ use of such tools is that they will slowly surrender their judgment to AI and lose analytical skills, says Massachusetts District Court Associate Justice Brian Palmucci.

• SEC's 'Innovation Exemption' Isn't A Substitute For Legislation

  

  The U.S. Securities and Exchange Commission's recently announced innovation exemption, allowing trading in certain tokenized securities on permissioned on-chain trading platforms, is a temporary and conditional solution for a specific market model, not a general exemption for on-chain securities trading, says Niels Lemmers at Flow Traders.

• Courts Signal Higher FCRA Bar For Identity Theft Claims

  

  Recent rulings adopting a heightened, "objectively and readily verifiable" inaccuracy standard may give credit furnishers stronger defenses to identity theft-related Fair Credit Reporting Act claims in the Ninth Circuit, while requiring them to continue documenting thorough dispute investigations, says Brian Kiolbasa at Ballard Spahr.

• How Banks Can Better Prepare For Wire Fraud Risks

  

  Recent schemes serve as a reminder that banks can better limit liability for fraudulent wire transfers by documenting commercially reasonable security procedures, following them consistently, and addressing beneficiary name and account number discrepancies, says Shelli Clarkston at Spencer Fane.

• FINRA Disputes Highlight Timeliness In Arbitrator Bias Claims

  

  Recent Financial Industry Regulatory Authority litigation over arbitrator neutrality shows that the strength of challenges depends not only on what counsel discovers, but also on how early it is uncovered and how concretely it can be demonstrated, says Dax White at White Law.

• Opinion

  A Capital Markets Agenda For The New Congress

  

  When the 120th Congress convenes in January, it should place capital markets issues near the top of its to-do list, with a focus on legislation that can make the public company model more competitive, says David Kaufman at Thompson Coburn.

• FinCEN Scam Alerts Push Banks To Rethink AML Monitoring

  

  Recent Financial Crimes Enforcement Network guidance on digital asset scams suggests that future anti-money laundering examinations may focus less on whether institutions detect the movement of criminal proceeds and more on whether they can identify fraud schemes before victims suffer catastrophic losses, say attorneys at Ballard Spahr.