Expert Analysis

• How Economic Analysis Informs Consumer Lending Disputes

  

  A new wave of consumer lending class actions makes clear that economic analysis of control, pricing, repayment risk and borrower behavior will be central to litigation involving fintech platforms, earned wage access products and online lending models as regulatory enforcement recedes, say economists at The Brattle Group.

• Banks Face Lighter CRA Burdens Under Regulators' Proposal

  

  Banking regulators' recently proposed rule to redo the framework under the Community Reinvestment Act would materially change which banks are subject to its most demanding requirements and how regulators evaluate lending, services, community development activities and strategic plans, says James Williams at Venable.

• Series

  Taekwondo Makes Me A Better Lawyer

  

  Taekwondo has taught me to recognize when to fight for a position and when to focus on finding a solution, and that the best outcomes are often achieved by solving problems — all of which has improved my work as a bankruptcy lawyer, mediator and Subchapter V trustee, says Amy Denton Mayer at Berger Singerman.

• NC Crypto Kiosk Law Opens Door To Stricter Fraud Regs

  

  North Carolina's new cryptocurrency kiosk law will force operators to build fraud-screening, disclosure and compliance systems before the end of the year, while also providing an opening for more stringent city and county limits on kiosk placement and operations, say attorneys at Moore & Van Allen.

• Student Loan Suit Draws Line On Testimony In Trust Litigation

  

  A recent interlocutory opinion from the Southern District of New York shows securitization experts can explain servicing practices but cannot substitute for authenticated loan-level ownership proof or intent evidence, signaling that parties in student loan trust cases should sharpen recordkeeping and tracing strategies, says attorney Stanley Tate.

• Opinion

  A Guiding Principle For The SEC On Exempt Capital Markets

  

  The U.S. Securities and Exchange Commission's recently proposed Regulation Crypto Assets borrows selectively from other capital-raising exemptions while giving crypto issuers materially different terms, and those unexplained differences reveal the need for a regulatory approach of presumptive parity, says Brian Christie at the Crowdfunding Professional Association.

• EU's Russian Crypto Sanctions Call For Layered Compliance

  

  The European Union's recently adopted Russia crypto sanctions package marks a significant escalation in enforcement, making it prudent to adopt a stratified compliance approach capable of identifying indirect measures via decentralized finance, cross-chain infrastructure, stablecoins and other blockchain-native services, says Kevin Strenski at Nardello.

• What To Know As Legal Duty To Consider AI Takes Shape

  

  While the U.K. Jurisdiction Taskforce’s recent statement on liability for artificial intelligence harms is nonbinding for both U.K. and U.S. lawyers, it highlights the importance of being able to distinguish between the availability of a tool and a professional obligation to use it, say Jonny Frank and Michael Costa at StoneTurn.

• NY Ch. 7 Ruling Continues Cash Advance Recharacterization

  

  A New York bankruptcy court recently ruled in the Kossoff Chapter 7 proceedings that a merchant cash advance agreement was not a true asset sale, joining a growing number of decisions in concluding that such transactions are disguised loans and therefore subject to avoidance actions, says Schuyler Carroll at Manatt.

• Prepping To Use Crypto Collateral Under Ohio Ownership Law

  

  Ohio's digital asset law should ease the path to using cryptocurrency as collateral, and as the October effective date approaches, lenders should update their loan documentation and diligence processes to take advantage of the new control-based perfection rules, say attorneys at Kegler Brown.

• How Solar Fraud Case Affects Lender Oversight Of Dealers

  

  The U.S. Supreme Court's refusal to review the Third Circuit's ruling in Migliore v. Sunlight Financial means that residential solar finance companies are protected from vicarious liability for deceptive acts by independent solar dealers — but lenders must still take steps to guard against dealer misconduct, says Rand Manasse at Green Lane Partners.

• Parsing Gov't Scrutiny Of Lending To Unauthorized Workers

  

  Attorneys at Mayer Brown explain guidance recently issued by three banking regulators that addresses risks associated with lending to so-called non-work authorized individuals and discuss what the regulatory update could mean for fintech companies.

• Addressing Merchant Cash Advances In Subchapter V

  

  As regulatory enforcement continues and more small businesses turn to Subchapter V bankruptcy to manage merchant cash advance debt, counsel and trustees can take meaningful steps throughout the bankruptcy process to successfully counteract the potentially nefarious actions of MCAs, say Hannah Hutman at Hoover Penrod and Starria Cuffee at Stretto.

• SEC Rulemaking Radar: The Rubber Meets The Road

  

  The U.S. Securities and Exchange Commission's new rulemaking agenda shows its regulatory reset taking shape, with sweeping crypto proposals that could bring the biggest changes it has made to broker-dealer, exchange and trading compliance in decades, says Christopher Grobbel at Goodwin.

• CFPB Complaint Portal Overhaul Signals Changing Priorities

  

  The Consumer Financial Protection Bureau's updates to its consumer complaint portal and decision to cease publishing consumer complaint narratives should be viewed by companies as one component of a larger recalibration of how the CFPB collects information and allocates its supervisory and enforcement resources, say attorneys at Cooley.