Two Steps Forward, One Step Back: Developments in the Law Affecting Electronic Payments and Financial Services

Our past surveys have observed that frequent changes in the rules surrounding electronic payments-spurred by both regulation and enforcement actions create uncertainty and make forward progress difficult for many providers. This survey year is no exception: regulators have taken two steps forward, one step back on a number of fronts. This survey reports on (1) the proposal by the Office of the Comptroller of the Currency ( OCC ) regarding fintech charters, which states have challenged in actions still pending- (2) changes to Regulation CC regarding remote check deposit and disputes over altered or forged checks-(3) the Supreme Court\u27s decision in Expression Hair Designs, which may create the potential for challenges to required regulatory disclosures- (4) a modification by the Internal Revenue Service ( IRS ) of its demand for Bitcoin user information from a virtual currency exchange, after facing court challenges and congressional inquiries- (5) new payroll card regulations in Connecticut, Pennsylvania, and New York-with the New York rule being invalidated by another state agency, throwing the whole controversy into the state courts- (6) recent enforcement actions by the Consumer Financial Protection Bureau ( CFPB ) and Federal Trade Commission ( FTC ) regarding unfair and deceptive acts and practices- and (7) the CFPB\u27s final rule regarding prepaid accounts. Like the proverbial frog trying to escape from a well, business lawyers who follow these issues must learn to deal with constant movement, albeit in multiple directions