​​​​​​​​​​​​​​​​​is issued by the Innovative Payments Association twenty times a year as a service to members.
Editors: Brian Tate, President and CEO, IPA; Ben Jackson, COO, IPA;  Grant Hannah, Director of Government Relations, IPA; Eli Rosenberg, Partner, Baird Holm LLP; and Gray Derrick, Partner, Baird Holm LLP.
Please address comments and suggestions to: gr@ipa.org.

Innovative Payments Conference Coming Online in April 2021
The IPA’s Innovative Payments Conference is the must-attend annual event for the payments community. Take part in three days of cutting-edge content, discussions and enhanced networking as you engage directly with those leading the way in prepaid compliance, legislation, regulation and innovation.
 
​​Stay tuned as we build out the agenda and speaking faculty. We’re looking forward to putting on another great event for you. And even better, if you already know you’d like to attend, subscribe to our updates today so you will be one of the first to hear when our Early Bird rate launches.
 
The IPC program is designed to keep you ahead of an ever-changing industry and position you to succeed in tomorrow's payments environment. Year after year, the event is an unqualified success, attracting hundreds of attendees from across the country. Download the brochure today to learn more about what to expect at IPC 2021!
 
Click here for additional information.
 
IPA Launches Safe Shopping Webpage
This year has led to more online shopping than ever. Unfortunately, that means that scammers and fraudsters are also sneaking around cyberspace.
 
The Innovative Payments Association, the Retail Gift Card Association, and the Payments Fraud and Risk Consortium have brought together a dozen tips from our members’ security teams to help you & your customers have a safe holiday shopping season. 
 
Check out our newest page, shoppingsafely.org, that teaches everyone how to protect themselves from fraud as we take everything virtual in 2020 and beyond!

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)
 
FDIC Issues Brokered Deposits Final Rule
This morning the Federal Deposit Insurance Corporation (FDIC) released its Final Rule on Unsafe and Unsound Banking Practices: Brokered Deposits Restrictions (Final Rule) related to the agency’s Frequently Asked Questions (FAQs) and regulations on Brokered Deposits. Today’s release follows the FDIC’s Notice of Proposed Rulemaking (NPR) from December 2019.  The Final Rule becomes effective April 1, 2021; with an extended compliance date of January 1, 2022.
 
Recommending changes to the FDIC’s rules on Brokered Deposits has been a priority issue for the IPA since they were first released by the FDIC in 2015 (the most recent version was issued on June 30, 2016). The IPA extends our gratitude to the FDIC for their willingness to engage in constructive conversations and work with the Association over the past 5 years in our effort to ensure that the FDIC’s rules create a level playing field and enable the payments industry to offer consumers the innovative, low-cost, safe, and convenient products they demand. The IPA applauds the FDIC for taking this step towards creating a brokered deposits regime that recognizes the innovation in the payments industry that has taken place in thirty-plus years since the brokered deposits rules were first established.
 
In brief, the Final Rule clarifies the definition of “Deposit Broker,” what it means to be “engaged in the business of placing deposits, or facilitating the placement of deposits, ” and when an agent or nominee meets the “primary purpose” exception to this "“Deposit Broker” definition. 
 
Accordingly, under the Final Rule, a person is engaged in the business of facilitating the placement of deposits if that person is engaged in certain activities with respect to deposits placed at more than one insured depository institution (IDI). Specifically, the final rule provides that if a person engages in any one of the following activities, while engaged in business, the person will be a deposit broker and any deposits placed by the person will be brokered:
 

• The person has legal authority, contractual or otherwise, to close the account or move the third party’s funds to another insured depository institution;
• The person is involved in negotiating or setting rates, fees, terms, or conditions for the deposit account; or
• The person engages in matchmaking, as defined in the rule.

 
Additionally, in an effort to clarify the types of persons that meet the “deposit broker” definition, the FDIC provides that under the Final Rule any person that has an exclusive deposit placement arrangement with one IDI, and is not placing or facilitating the placement of deposits at any other IDI, will not be “engaged in the business” of placing, or facilitating the placement of, deposits and therefore will not meet the “deposit broker” definition.
 
Most notably, the FDIC also recognizes a number of business relationships, which the FDIC calls “designated exceptions,” as meeting the primary purpose exception, including the “enabling transactions” exception. Under the final rule, if an agent or nominee places 100 percent of its customer funds that have been placed at depository institutions, with respect to a particular business line, into transaction accounts, and no fees, interest, or other remuneration is provided to the depositor, the agent or nominee will meet the designated exception of enabling transactions.
 
The FDIC clarifies that, in a change from the proposed rule, entities that wish to avail themselves of the designated exception for “enabling transactions” would not be subject to the application process, and may instead file a notice, as laid out in section I(C)(3) of the Final Rule. Agents or nominees that place customer deposits at depository institutions in transactional accounts in which the customer earns some amount of interest, fees, or other remuneration, may still qualify for the primary purpose exception, but will continue to be subject to an application process with the FDIC prior to taking advantage of the exception. The following criteria will be considered as part of the application process:
 

• The amount of interest, fees, or other remuneration;
• The amount of transactions that customers make, on average, on a month-to-month basis;
• The marketing materials provided by the agent or nominee indicate that funds placed into insured depository institutions are to enable transactions for depositors; and
• If any customer funds are placed in deposit accounts that are not transaction accounts, the percentage of customer funds placed in deposit accounts that are not transaction accounts.

 
As a reminder, in April the IPA filed our comment letter responding to the FDIC’s proposed rulemaking (“Proposed Rule”) on Brokered Deposits. In brief, the IPA’s comment thanks the FDIC for releasing their proposal and creating new exceptions to their current brokered deposit regulations. However, the IPA’s comment urges the FDIC to expand and modify their proposal by:
 

• Establishing a bright line test to determine who qualifies for the Enabling exception for transaction accounts without an application process.   
• If the FDIC proceeds with an application process IPA requests that the FDIC:  
  • create a transparent application process with an objective list of factors;
  • ensure that all decisions are put in writing; and
  • allow banks to appeal if they are denied
• Make it clear that the 2016 FAQs will no longer be in effect once the final rule is published.  

 
A complete timeline of regulatory activity since 2015 and the IPA’s involvement is below: 
 
FDIC Brokered Deposits FAQ Timeline:

• FDIC releases initial FAQ on January 5, 2015  
• Revised FAQs released on November 13, 2015
• Second Revision released on June 30, 2016
• The IPA (NBPCA) unsolicited comment letter and white paper on Dec. 23, 2015  
• U.S. Rep. Tipton (R-CO) introduces Protect Prepaid Accounts Act (2016)
• IPA meeting with FDIC Chair Jelena McWilliams (July 24, 2018)
• IPA Op-ed: Taking a Second Look at the FDIC’s Brokered Deposit Definition (Sept. 7, 2018)
• FDIC releases ANPR on Brokered Deposits in December 2018 
• IPA comment responding to the ANPR on Brokered Deposits on April 18, 2019 
• IPA meeting with FDIC General Counsel Nick Posiadly on July 24, 2019
• IPA Op-ed: For the Sake of Payments Innovation, Deposit Insurance Must Enter the 21st Century (Nov. 11, 2019)
• FDIC releases NPR on Brokered Deposits in December 2019
• IPA comment responding to the NPR in April 2020
• IPA interviews FDIC General Counsel Nick Posiadly as part of IPA Summer of Learning Series on July 16, 2020
• FDIC releases Final Rule on Brokered Deposits in December 2020

 
The IPA will host a members-only call to discuss the Final Rule further and answer questions on Thursday, December 17, 2020 at 3 PM ET (One Tap Dial-in: 425-535-9887,,728742176#). The IPA thanks all of our members for supporting the IPA’s effort to modernize the FDIC’s Brokered Deposit regulations. If you have any questions or concerns, please contact Grant Hannah, Eli Rosenberg or Brian Tate.   
 
IPA Drafting Comment in Response to Banking Regulators’ Temporary Asset Thresholds Interim Final Rule
On November 20, the FDIC, OCC, and Fed released an Interim Final Rule on Temporary Asset Thresholds that would allow banks with under $10 billion in total assets as of December 31, 2019, to use asset data as of that date in order to determine the applicability of various regulatory asset thresholds during calendar years 2020 and 2021. 
 
According to the regulators, the rule was released to provide relief to community banking organizations that have experienced rapid and unexpected increases in their sizes due to participation in coronavirus response programs, like PPP, and other lending that supports the U.S. economy.
 
There is a 60-day comment period that closes on February 1, 2020. The IPA will submit a comment in response. If you have any specific concerns you would like the IPA to address in the letter, please let Grant Hannah (ghannah@ipa.org) know.
 
CONSUMER FINANCIAL PROTECTION BUREAU (CFPB)
 
CFPB Issues Advisory Opinion on Earned Wage Access
On November 30, the Consumer Financial Protection Bureau (CFPB) issued an advisory opinion regarding earned wage access (EWA) products. According to the CFPB, the advisory opinion aims to resolve regulatory uncertainty regarding the applicability of the definition of credit under Regulation Z and encourage further innovation in the EWA space. In brief, the advisory opinion concludes that Covered EWA Transactions, as defined in the advisory opinion, are not “credit” for purposes of Regulation Z.
 
This advisory opinion was issued under the CFPB’s Advisory Opinions Policy, which allows entities seeking to comply with regulatory requirements to submit a request to the CFPB where uncertainty exists.
 
Additional information can be found here.
 
CFPB Releases Fall 2020 Rulemaking Agenda
On December 11, the Consumer Financial Protection Bureau (Bureau) published its Fall 2020 Agenda as part of the Fall 2020 Unified Agenda of Federal Regulatory and Deregulatory Actions. The agenda lists the regulatory matters that we expect to focus on between November 2020 and November 2021.
 
The Bureau has already completed some of the actions listed on the Fall 2020 Agenda:
 

• On September 15, 2020, the Bureau took a step towards implementing section 1071 of the Dodd-Frank Act, releasing an outline of regulatory proposals under consideration and alternatives considered in advance of convening a panel under the Small Business Regulatory Enforcement Fairness Act (SBREFA). 
• On October 20, 2020, the Bureau issued the first of three final rules concerning amendments to the qualified mortgage (QM) provisions of Regulation Z, which implement provisions of the Truth in Lending Act (TILA). 
• On October 22, 2020, the Bureau issued an Advance Notice of Proposed Rulemaking concerning consumer data access to implement Section 1033 of the Dodd-Frank Act.
• On October 30, 2020, the Bureau issued a final rule to restate and clarify prohibitions on harassment and abuse, false or misleading representations, and unfair practices by debt collectors when collecting consumer debt. 

 
In addition, the Bureau has several other regulatory activities planned for the remainder of 2020 through the spring of 2021. Key among these are the following:
 

• In addition to completing and publishing the October 30, 2020 final rule on debt collection, the Bureau has also engaged in testing of time-barred debt disclosures that were not the focus of the May 2019 proposal. In early 2020, after completing the testing, the Bureau published a supplemental NPRM related to time-barred debt disclosures. The Bureau expects to issue a final rule in December 2020 addressing, among other things, disclosures related to the validation notice and time-barred debt.
• The Bureau is continuing a rulemaking to address the anticipated expiration of the LIBOR index, which the UK Financial Conduct Authority has stated that it cannot guarantee the publication of beyond the end of 2021. 
• The Bureau is participating in interagency rulemaking processes with the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Federal Housing Finance Agency to develop regulations to implement the amendments made by the Dodd-Frank Act to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) concerning appraisals.
• The Bureau anticipates issuing an NPRM in spring 2021 to consider possible amendments to the Bureau’s mortgage servicing rules to address actions required of servicers working with borrowers affected by natural disasters or other emergencies.
• The Bureau anticipates publishing two NPRMs in early 2021 concerning possible revisions to the 2015 Home Mortgage Disclosure Act (HMDA).

 
Additional information can be found here. 
 
FINANCIAL CRIMES ENFORCEMENT NETWORK (FinCEN)

FinCEN Director Emphasizes Importance of Information Sharing Among Financial Institutions
On December 10, FinCEN Director Kenneth A. Blanco discussed how information sharing is critical to identifying, reporting, and preventing financial crime. In his remarks at a virtual conference, Director Blanco provided clarification on FinCEN’s information sharing program under Section 314(b) of the USA PATRIOT Act, and announced that FinCEN is issuing a new 314(b) Fact Sheet and rescinding previously issued guidance (FIN-2009-G002) as well as a former administrative ruling (FIN-2012-R006) (parts of which are incorporated into the guidance in the new 314(b) Fact Sheet). 
Section 314(b) of the USA PATRIOT Act is an important tool for combatting financial crime.  It provides financial institutions with the ability to share information with one another, under a safe harbor provision that offers protections from civil liability, in order to better identify and report potential money laundering or terrorist financing.  After carefully considering feedback from the financial industry, FinCEN is providing three main clarifications:

• A financial institution may share information relating to activities that it suspects may involve possible terrorist financing or money laundering.  Although this may include circumstances in which a financial institution has information about activities it suspects involve the proceeds of a specified unlawful activity (SUA), financial institutions do not need to have specific information that these activities directly relate to proceeds of an SUA, or to have identified specific laundered proceeds of an SUA. Nor do financial institutions need to have made a conclusive determination that the activity is suspicious in order to benefit from the statutory safe harbor.  Further, financial institutions may share information about activities as described, even if the activities do not constitute a “transaction.”  This can include an attempted transaction, or an attempt to induce others to engage in such a transaction.  This allows financial institutions to avail themselves of Section 314(b) information sharing to address incidents of fraud or cybercrime, and other predicate offenses, where appropriate.  In addition, there is no limitation under Section 314(b) on the sharing of personally identifiable information, or the type or medium of information shared, to include sharing information verbally.
• An entity that is not itself a financial institution under the Bank Secrecy Act may form and operate an association of financial institutions whose members share information under Section 314(b).  Notably, this includes compliance service providers. 
• An unincorporated association governed by a contract among the group of financial institutions that constitutes its members may engage in information sharing under Section 314(b).

 Additional information can be accessed here.
 
FEDERAL RESERVE BOARD OF GOVERNORS (FED)
 
Federal Reserve Plans More Fintech Guidance for Banks
In a speech on December 4, Federal Reserve Board Governor Michelle Bowman announced a couple of actions the Fed plans to take in the new year related to bank-fintech partnerships. 
 
First, she indicated that the Fed plans to publish a white paper that documents examples of bank partnerships with fintech companies and outlines effective practices for managing those arrangements early next year. She further specified that the white paper would describe a range of distinct options for such partnerships and seek to identify benefits and challenges of the different approaches. 
 
In addition, she said that she has “directed Federal Reserve staff to work with their interagency colleagues to develop a vendor due diligence guide, aligned with existing supervisory expectations, which would include sample questions for vendors and guidance on appropriate responses.”
 
Finally, she added that she expects Federal Reserve staff to work with the Office of the Comptroller of the Currency and Federal Deposit Insurance Corp. "to enhance and align interagency guidance for third-party risk management."
 
A copy of the full speech can be accessed here.
 

Waters Provides Recommendations to President-Elect Biden on Trump Actions to Reverse
 
On December 4, Congresswoman Maxine Waters (D-CA), Chairwoman of the House Committee on Financial Services, sent a letter to President-Elect Biden, providing recommendations on areas where the Biden Administration should immediately reverse the actions of the Trump Administration, and several actions that the Biden Administration can immediately take.
 
Included with the letter is a list of regulations and other executive actions taken by the Trump Administration over the past four years within the jurisdiction of the House Committee on Financial Services that the Biden Administration should reverse. Also included are recommendations to strengthen certain regulations after the damage the Trump Administration has caused is reversed.
 
Additional information and the corresponding documents can be accessed here.

IPA Sending Letter in Support of New Jersey Earned Wage Access Bill
The IPA will send a letter of support for New Jersey A3450, which would establish a legal and consumer protection framework for earned wage access (EWA) in the State of New Jersey. In brief, the IPA’s letter discusses the need for EWA products, the benefits EWA products offer both employees and employers, and the positive impact A3450 would have for consumer protection and innovation in the State of New Jersey.  
 
The measure is scheduled to come up for a floor vote in the Assembly on December 17th. The IPA thanks all who provided assistance and feedback throughout the drafting process.
 
The IPA’s letter can be accessed here.
 
California Attorney General’s Office Recently Releases Fourth Set of Proposed Regulatory Modifications to The California Consumer Privacy Act
The fourth set of modifications are in response to the comments to the third set of modifications and are intended to clarify and conform the proposed regulations to existing law.  The changes made include:
 

• Revisions to section 999.306, subd. (b)(3), which clarifies that a business selling personal information collected from consumers in the course of interacting with them offline shall inform consumers of their right to opt out of the sale of their personal information by an offline method.
• Proposed section 999.315, subd. (f), which reinstates the requirement for a uniform opt-out button to be used “in addition to . . . but not in lieu of . . . a ‘Do Not Sell My Personal Information link.”

 
The Attorney General’s Office is accepting written comments regarding the fourth set of proposed modifications until December 28, 2020.
 
Additional information and the full text of the modifications can be found here. 

New Federal Laws
 
None.
 
Pending Federal Bills
 
H.R. 189--Financial Institution Customer Protection Act of 2019
Summary: This bill specifies that a federal banking agency cannot request or order a financial institution to close a customer account unless the agency has a valid reason for doing so, and that reason cannot be only reputational risk.
Introduced:  Jan. 3, 2019
Status: The bill was referred to the House Committee on Financial Services on Jan. 3, 2019.
Sponsor: Rep. Blaine Luetkemeyer (R-MO); 0 co-sponsors. 2% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/189/all-actions?q=%7B%22search%22%3A%5B%22hr+189%22%5D%7D&s=2&r=1
 
H.R. 758--Cooperate with Law Enforcement Agencies and Watch Act of 2019
Summary: The bill would protect institutions from regulatory action for keeping accounts open at the request of law enforcement.
Introduced:  Jan. 24, 2019
Status: The bill was received in the Senate, read twice, and referred to the Committee on Banking, Housing, and Urban Affairs on March 12, 2019.
Sponsor: Rep. J. French Hill (R-AR); 2 co-sponsors. 2% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/758/cosponsors?q=%7B%22search%22%3A%5B%22hr+758%22%5D%7D&r=1&s=1
 
H.R. 907—To Clarify Exclusions from the Definition of a Deposit Broker
Summary: The bill would amend the Federal Deposit Insurance Act (“FDIA”) to clarify the exemptions from the definition of a “deposit broker.” Specifically, the bill would amend FDIA Section 29(g)(2)(I) to provide that a deposit broker does not include an agent or nominee (i) whose primary business purpose is not the placement of deposits with an insured financial institution; or (ii) who is an exclusive agent of an insurance company or insured depository institution affiliated with an insurance company, provided that the agent or nominee is, among other things, contractually prohibited from placing funds with any other unaffiliated depository institution.
Introduced:  Jan. 30, 2019
Status: The bill was referred to the House Committee on Financial Services on Jan. 30, 2019.
Sponsor: Rep. Darin LaHood (R-IL); 2 co-sponsors. 2% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/house-bill/907/text?r=55&s=1
 
H.R. 1423—Forced Arbitration Injustice Repeal (FAIR) Act
Summary: The bill would prohibit forced arbitration agreements and any agreements that would preclude class action lawsuits. 
Introduced:  Feb. 28, 2019
Status:  Received in the Senate and Read twice and referred to the Committee on the Judiciary on September 24, 2019.
Sponsor: Rep. Johnson, Henry C. “Hank,” Jr. (D-GA); 222 cosponsors. 2% chance of enactment (according to govtrack). 
Details: https://www.congress.gov/bill/116th-congress/house-bill/1423
 
H.R. 2514—Counter Act of 2019
Summary: This bill would make changes to the Bank Secrecy Act and anti-money laundering laws. It would require the financial regulators and Financial Crimes Enforcement Network to each appoint a civil liberties and privacy officer who would need to consult on any new regulations. It would create a public-private information sharing program between FinCEN and the financial services industry, and it would require AML training for examiners. 
Introduced: May 3, 2019
Status: The bill passed the House of Representatives on October 28, 2019 and was received in the Senate and referred to the Senate Banking Committee on October 29, 2019.
Sponsor: Rep. Emanuel Cleaver (D-MO); 2 co-sponsors, 2% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/2514?q=%7B%22search%22%3A%5B%22hr2514%22%5D%7D&r=1&s=2
 
H.R. 2630—Cash Always Should be Honored (CASH) Act
Summary: This bill would make it unlawful for any physical retail establishment to refuse to accept cash as payment.
Introduced:  May 9, 2019
Status: The bill was referred to the House Committee on Energy and Commerce on May 9, 2019.
Sponsor: Rep. David Cicilline (D-RI); 10 co-sponsors. 2% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/house-bill/2630
 
H.R. 4501— Consumer Transaction Account Protection Act of 2019
Summary: This bill would specify that consumer transaction account deposits of an insured depository institution shall not be considered to be funds obtained through a deposit broker.
Introduced:  September 26, 2019
Status: The bill was referred to the House Committee on Financial Services on September 26, 2019.
Sponsor: Rep. Roger Williams (R-TX); 1 co-sponsor. 2% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/house-bill/4501?r=11&s=1
 
H.R. 4767—Financial Services Innovation Act of 2019
Summary: The bill requires federal regulators to create Financial Services Innovation Offices (FSIOs) within their agencies to foster innovation in financial services. Companies would also be able to apply for an “enforceable compliance agreement” with the FSIOs that, if accepted, will allow them to provide an innovative product or service under an alternative compliance plan.
Introduced:  Oct. 21, 2019
Status: The bill was referred to the House Financial Services Committee and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. On Nov. 11, 2019 it was referred to the Subcommittee on Commodity Exchanges, Energy, and Credit of the Committee on Agriculture.
Sponsor: Rep. Patrick McHenry (R-NC); 1 co-sponsor; 2% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/4767?q=%7B%22search%22%3A%5B%224767%22%5D%7D&s=1&r=1
 
H.R. 6116-- Consumer Financial Protection Commission Act
 
Summary: The bill would convert the leadership structure of the CFPB from a sole director to a commission. The commission would be made up of 5 members who are appointed by the president and approved by the Senate to serve 5-year terms. No more than 3 members of the commission would be allowed to be from the same political party. The name of the Bureau would also be changed to the Consumer Financial Protection Commission. 
Introduced:  March 5, 2020
Status: The bill was referred to the House Financial Services Committee.
Sponsor: Rep. Blaine Luetkemeyer (R-MO); 25 co-sponsors; 2% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/6116/cosponsors?r=4&s=1&searchResultViewType=expanded&KWICView=false
 
H.R. 6241-- Touchless Transactions Act of 2020
Summary: The bill would eliminate signatures for swipe, dip, or tap point-of-sale transactions.
Introduced:  March 12, 2020
Status: The bill was referred to the House Financial Services Committee.
Sponsor: Rep. French Hill (R-AR); 10 co-sponsors; 2% chance of enactment (according to govtrack)
Details:https://www.congress.gov/bill/116th-congress/house-bill/6241?q=%7B%22search%22%3A%5B%22hr+6241%22%5D%7D&s=2&r=1
 
H.R. 8721-- Public Banking Act of 2020
Summary: The bill would allow for the creation of state and locally administered public banks by establishing the Public Bank Grant program administered by the Secretary of the Treasury and the Federal Reserve Board which would provide grants for the formation, chartering and capitalization of public banks. It also codifies that public banks may be members of the Federal Reserve. The legislation also creates a pathway for state-chartered banks to gain federal recognition and provides a framework for public banks to interact with Fed Accounts, postal banking, and Digital Dollar platforms.
Introduced:  October 30, 2020
Status: Referred to the Committee on Financial Services, and in addition to the Committee on Oversight and Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Sponsor: Reps. Rashida Tlaib (D-MI) and Alexandria Ocasio-Cortez (D-NY); 9 co-sponsors; 2% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/house-bill/8721?s=1&r=1
 
S. 142—The American Data Dissemination Act
Summary: The bill would impose privacy requirements on providers of internet services similar to the requirements imposed on federal agencies under the Privacy Act of 1974.
Introduced: Jan. 16. 2019
Status: The bill was referred to the Senate Commerce, Science, and Transportation Committee on Jan. 16, 2019.
Sponsor: Sen. Marco Rubio (R-FL), 0 co-sponsors, 2% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/senate-bill/142/text?q=%7B%22search%22%3A%5B%22S.142%22%5D%7D&r=1&s=3
 
S. 149—Stop Senior Scams Act
Summary:  The bill would establish an advisory council made up of federal regulators and industry representatives from, among others, gift card and prepaid card companies, to collect and review information in the development of model materials to provide to retailers, financial services companies, and wire-transfer companies to be used to educate employees on how to identify and prevent scams affecting seniors.
Introduced: Jan. 16, 2019
Status: Passed the Senate on June 16, 2020 by unanimous consent and was sent to the House of Representatives for further consideration. 
Sponsor:  Sen. Robert Casey (D-PA); 2 co-sponsors, 2% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/senate-bill/149/text?q=%7B%22search%22%3A%5B%22S.149%22%5D%7D&r=1&s=2
 
S. 189—The Social Media Privacy Protection and Consumer Rights Act of 2019
Summary: This bill requires online platform operators to inform a user, prior to a user creating an account or otherwise using the platform, that the user’s personal data produced during online behavior will be collected and used by the operator and third parties.
Introduced: Jan. 17, 2019
Status: Read twice and referred to the Committee on Commerce, Science, and Transportation on Jan. 17, 2019
Sponsor:  Sen. Amy Klobuchar (D-MN); 3 co-sponsors, 2% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/senate-bill/189/text?q=%7B%22search%22%3A%5B%22S.189%22%5D%7D&r=1&s=1
 
S. 453—A Bill to Amend the Consumer Financial Protection Act of 2010 to Subject the Bureau of Consumer Financial Protection to the Regular Appropriations Process
Summary: The bill would amend the Consumer Financial Protection Act of 2010 to subject the Consumer Financial Protection Bureau to the regular appropriations process.
Introduced:  Feb. 12, 2019
Status:  Read twice and referred to the Committee on Banking, Housing, and Urban Affairs on Feb. 12, 2019.
Sponsor: Sen. David Perdue (R-GA); 18 cosponsors. 2% chance of enactment (according to govtrack). 
Details: https://www.congress.gov/bill/116th-congress/senate-bill/453
 
S. 3108— Consumer Transaction Account Protection Act of 2019
Summary: This bill would specify that consumer transaction account deposits of an insured depository institution shall not be considered to be funds obtained through a deposit broker.
Introduced:  December 19, 2020
Status: The bill was referred to the Committee on Banking, Housing, and Urban Affairs on December 19, 2019.
Sponsor: Sen. Doug Jones (D-AL); 2 co-sponsors. 2% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/senate-bill/3108?q=%7B%22search%22%3A%5B%22brokered+deposits%22%5D%7D&s=4&r=2
 
S. 3962— Asset Growth Restriction Act of 2020
Summary: The bill would strike the current legal framework for brokered deposits and replace it with an authorization for the FDIC to limit the asset growth of financially troubled banks by regulation, rule, or order.
Introduced:  June 15, 2020
Status: The bill was referred to the Committee on Banking, Housing, and Urban Affairs on June 15, 2020.
Sponsor: Sen. Jerry Moran (R-KS); 0 co-sponsors. 1% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/senate-bill/3962?s=7&r=9
 
S. 4159 — E-SIGN Modernization Act of 2020
Summary: The bill would remove the requirement that consumers “ reasonably demonstrate” that they can access the disclosures that are the subject of the consent, through a website or e-mail, for example, after they’ve specifically asked to go paperless.
Introduced:  July 2, 2020
Status: The bill was marked-up and approved by the Commerce Committee on September 16, 2020.
Sponsor: Sen. John Thune (R-SD); 3 co-sponsors. 2% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/senate-bill/3962?s=7&r=9

​​​​​​​​​​​​​​​​is issued by the Innovative Payments Association twenty times a year as a service to members.
Editors: Brian Tate, President and CEO, IPA; Ben Jackson, COO, IPA;  Grant Hannah, Director of Government Relations, IPA; Eli Rosenberg, Partner, Baird Holm LLP; and Gray Derrick, Partner, Baird Holm LLP.
Please address comments and suggestions to: gr@ipa.org.

New Federal Laws
 
None.

Pending Federal Bills
 
H.R. 189--Financial Institution Customer Protection Act of 2019
Summary: This bill specifies that a federal banking agency cannot request or order a financial institution to close a customer account unless the agency has a valid reason for doing so, and that reason cannot be only reputational risk.
Introduced:  Jan. 3, 2019
Status: The bill was referred to the House Committee on Financial Services on Jan. 3, 2019.
Sponsor: Rep. Blaine Luetkemeyer (R-MO); 0 co-sponsors. 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/189/all-actions?q=%7B%22search%22%3A%5B%22hr+189%22%5D%7D&s=2&r=1
 
H.R. 758--Cooperate with Law Enforcement Agencies and Watch Act of 2019
Summary: The bill would protect institutions from regulatory action for keeping accounts open at the request of law enforcement.
Introduced:  Jan. 24, 2019
Status: The bill was received in the Senate, read twice, and referred to the Committee on Banking, Housing, and Urban Affairs on March 12, 2019.
Sponsor: Rep. J. French Hill (R-AR); 2 co-sponsors. 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/758/cosponsors?q=%7B%22search%22%3A%5B%22hr+758%22%5D%7D&r=1&s=1
 
H.R. 907—To Clarify Exclusions from the Definition of a Deposit Broker
Summary: The bill would amend the Federal Deposit Insurance Act (“FDIA”) to clarify the exemptions from the definition of a “deposit broker.” Specifically, the bill would amend FDIA Section 29(g)(2)(I) to provide that a deposit broker does not include an agent or nominee (i) whose primary business purpose is not the placement of deposits with an insured financial institution; or (ii) who is an exclusive agent of an insurance company or insured depository institution affiliated with an insurance company, provided that the agent or nominee is, among other things, contractually prohibited from placing funds with any other unaffiliated depository institution.
Introduced:  Jan. 30, 2019
Status: The bill was referred to the House Committee on Financial Services on Jan. 30, 2019.
Sponsor: Rep. Darin LaHood (R-IL); 2 co-sponsors. 3% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/house-bill/907/text?r=55&s=1
 
H.R. 1423—Forced Arbitration Injustice Repeal (FAIR) Act
Summary: The bill would prohibit forced arbitration agreements and any agreements that would preclude class action lawsuits. 
Introduced:  Feb. 28, 2019
Status:  Received in the Senate and Read twice and referred to the Committee on the Judiciary on September 24, 2019.
Sponsor: Rep. Johnson, Henry C. “Hank,” Jr. (D-GA); 222 cosponsors. 3% chance of enactment (according to govtrack). 
Details: https://www.congress.gov/bill/116th-congress/house-bill/1423
 
H.R. 2514—Counter Act of 2019
Summary: This bill would make changes to the Bank Secrecy Act and anti-money laundering laws. It would require the financial regulators and Financial Crimes Enforcement Network to each appoint a civil liberties and privacy officer who would need to consult on any new regulations. It would create a public-private information sharing program between FinCEN and the financial services industry, and it would require AML training for examiners. 
Introduced: May 3, 2019
Status: The bill passed the House of Representatives on October 28, 2019 and was received in the Senate and referred to the Senate Banking Committee on October 29, 2019.
Sponsor: Rep. Emanuel Cleaver (D-MO); 2 co-sponsors, 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/2514?q=%7B%22search%22%3A%5B%22hr2514%22%5D%7D&r=1&s=2
 
H.R. 2630—Cash Always Should be Honored (CASH) Act
Summary: This bill would make it unlawful for any physical retail establishment to refuse to accept cash as payment.
Introduced:  May 9, 2019
Status: The bill was referred to the House Committee on Energy and Commerce on May 9, 2019.
Sponsor: Rep. David Cicilline (D-RI); 10 co-sponsors. 3% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/house-bill/2630
 
H.R. 4501— Consumer Transaction Account Protection Act of 2019
Summary: This bill would specify that consumer transaction account deposits of an insured depository institution shall not be considered to be funds obtained through a deposit broker.
Introduced:  September 26, 2019
Status: The bill was referred to the House Committee on Financial Services on September 26, 2019.
Sponsor: Rep. Roger Williams (R-TX); 1 co-sponsor. 3% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/house-bill/4501?r=11&s=1
 
H.R. 4767—Financial Services Innovation Act of 2019
Summary: The bill requires federal regulators to create Financial Services Innovation Offices (FSIOs) within their agencies to foster innovation in financial services. Companies would also be able to apply for an “enforceable compliance agreement” with the FSIOs that, if accepted, will allow them to provide an innovative product or service under an alternative compliance plan.
Introduced:  Oct. 21, 2019
Status: The bill was referred to the House Financial Services Committee and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. On Nov. 11, 2019 it was referred to the Subcommittee on Commodity Exchanges, Energy, and Credit of the Committee on Agriculture.
Sponsor: Rep. Patrick McHenry (R-NC); 1 co-sponsor; 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/4767?q=%7B%22search%22%3A%5B%224767%22%5D%7D&s=1&r=1
 
H.R. 6116-- Consumer Financial Protection Commission Act
Summary: The bill would convert the leadership structure of the CFPB from a sole director to a commission. The commission would be made up of 5 members who are appointed by the president and approved by the Senate to serve 5-year terms. No more than 3 members of the commission would be allowed to be from the same political party. The name of the Bureau would also be changed to the Consumer Financial Protection Commission. 
Introduced:  March 5, 2020
Status: The bill was referred to the House Financial Services Committee.
Sponsor: Rep. Blaine Luetkemeyer (R-MO); 25 co-sponsors; 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/6116/cosponsors?r=4&s=1&searchResultViewType=expanded&KWICView=false
 
H.R. 6241-- Touchless Transactions Act of 2020
Summary: The bill would eliminate signatures for swipe, dip, or tap point-of-sale transactions.
Introduced:  March 12, 2020
Status: The bill was referred to the House Financial Services Committee.
Sponsor: Rep. French Hill (R-AR); 10 co-sponsors; 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/6241?q=%7B%22search%22%3A%5B%22hr+6241%22%5D%7D&s=2&r=1
 
H.R. 8721-- Public Banking Act of 2020
Summary: TThe bill would allow for the creation of state and locally administered public banks by establishing the Public Bank Grant program administered by the Secretary of the Treasury and the Federal Reserve Board which would provide grants for the formation, chartering and capitalization of public banks. It also codifies that public banks may be members of the Federal Reserve. The legislation also creates a pathway for state-chartered banks to gain federal recognition and provides a framework for public banks to interact with Fed Accounts, postal banking, and Digital Dollar platforms.
Introduced:  October 30, 2020
Status: Referred to the Committee on Financial Services, and in addition to the Committee on Oversight and Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Sponsor: Reps. Rashida Tlaib (D-MI) and Alexandria Ocasio-Cortez (D-NY); 9 co-sponsors; % chance of enactment not yet available (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/house-bill/8721?s=1&r=1
 
S. 142—The American Data Dissemination Act
Summary: The bill would impose privacy requirements on providers of internet services similar to the requirements imposed on federal agencies under the Privacy Act of 1974.
Introduced: Jan. 16. 2019
Status: The bill was referred to the Senate Commerce, Science, and Transportation Committee on Jan. 16, 2019.
Sponsor: Sen. Marco Rubio (R-FL), 0 co-sponsors, 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/senate-bill/142/text?q=%7B%22search%22%3A%5B%22S.142%22%5D%7D&r=1&s=3
 
S. 149—Stop Senior Scams Act
Summary:  The bill would establish an advisory council made up of federal regulators and industry representatives from, among others, gift card and prepaid card companies, to collect and review information in the development of model materials to provide to retailers, financial services companies, and wire-transfer companies to be used to educate employees on how to identify and prevent scams affecting seniors.
Introduced: Jan. 16, 2019
Status: Passed the Senate on June 16, 2020 by unanimous consent and was sent to the House of Representatives for further consideration. 
Sponsor:  Sen. Robert Casey (D-PA); 2 co-sponsors, 83% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/senate-bill/149/text?q=%7B%22search%22%3A%5B%22S.149%22%5D%7D&r=1&s=2
 
S. 189—The Social Media Privacy Protection and Consumer Rights Act of 2019
Summary: This bill requires online platform operators to inform a user, prior to a user creating an account or otherwise using the platform, that the user’s personal data produced during online behavior will be collected and used by the operator and third parties.
Introduced: Jan. 17, 2019
Status: Read twice and referred to the Committee on Commerce, Science, and Transportation on Jan. 17, 2019
Sponsor:  Sen. Amy Klobuchar (D-MN); 3 co-sponsors, 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/senate-bill/189/text?q=%7B%22search%22%3A%5B%22S.189%22%5D%7D&r=1&s=1
 
S. 453—A Bill to Amend the Consumer Financial Protection Act of 2010 to Subject the Bureau of Consumer Financial Protection to the Regular Appropriations Process
Summary: The bill would amend the Consumer Financial Protection Act of 2010 to subject the Consumer Financial Protection Bureau to the regular appropriations process.
Introduced:  Feb. 12, 2019
Status:  Read twice and referred to the Committee on Banking, Housing, and Urban Affairs on Feb. 12, 2019.
Sponsor: Sen. David Perdue (R-GA); 18 cosponsors. 3% chance of enactment (according to govtrack). 
Details: https://www.congress.gov/bill/116th-congress/senate-bill/453
 
S. 3108— Consumer Transaction Account Protection Act of 2019
Summary: This bill would specify that consumer transaction account deposits of an insured depository institution shall not be considered to be funds obtained through a deposit broker.
Introduced:  December 19, 2020
Status: The bill was referred to the Committee on Banking, Housing, and Urban Affairs on December 19, 2019.
Sponsor: Sen. Doug Jones (D-AL); 2 co-sponsors. 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/senate-bill/3108?q=%7B%22search%22%3A%5B%22brokered+deposits%22%5D%7D&s=4&r=2
 
S. 3962— Asset Growth Restriction Act of 2020
Summary: The bill would strike the current legal framework for brokered deposits and replace it with an authorization for the FDIC to limit the asset growth of financially troubled banks by regulation, rule, or order.
Introduced:  June 15, 2020
Status: The bill was referred to the Committee on Banking, Housing, and Urban Affairs on June 15, 2020.
Sponsor: Sen. Jerry Moran (R-KS); 0 co-sponsors. 1% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/senate-bill/3962?s=7&r=9
 
S. 4159 — E-SIGN Modernization Act of 2020
Summary: The bill would remove the requirement that consumers “ reasonably demonstrate” that they can access the disclosures that are the subject of the consent, through a website or e-mail, for example, after they’ve specifically asked to go paperless.
Introduced:  July 2, 2020
Status: The bill was marked-up and approved by the Commerce Committee on September 16, 2020.
Sponsor: Sen. John Thune (R-SD); 3 co-sponsors. 15% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/senate-bill/3962?s=7&r=9
​

​​​​​​​​​​​​​​​is issued by the Innovative Payments Association twenty times a year as a service to members.
Editors: Brian Tate, President and CEO, IPA; Ben Jackson, COO, IPA;  Grant Hannah, Director of Government Relations, IPA; Eli Rosenberg, Partner, Baird Holm LLP; and Gray Derrick, Partner, Baird Holm LLP.
Please address comments and suggestions to: gr@ipa.org.

IPA & Ogilvy Government Relations Post Election Analysis

As you are aware, the results of the 2020 election will not only determine our country’s next President, but also the composition of the 117thCongress, where 35 U.S. Senate seats and all 435 U.S. House of Representatives seats were up for re-election. 
​
This year has been filled with surprises and challenges, and the election is shaping up to be no exception. Votes in many key states are still being counted due to record numbers of mail-in ballots and early votes. As a result, the winners of the races for the White House and Senate Majority have not been determined.
At this time, Vice President Biden leads President Trump (238-213, according to CNN) in the race to 270 electoral votes. Pennsylvania (20 electoral college votes), Michigan (16), Georgia (16), North Carolina (15), Arizona (11), Wisconsin (10), Nevada (6), Maine (4), and Alaska (3) have not yet been called. Varying deadlines to receive ballots and millions of still-uncounted votes in these states, in addition to impending legal challenges, could extend the timeline for final results for days, if not weeks.

In the race for the Senate Majority, Democrats have a net gain of one at this point (Colorado and Arizona pickup, Alabama loss), with Sen. Peters’ race in Michigan still not called. On the Republican side, Sen. Collins’ and Sen. Tillis’ elections have not been called. The Georgia special election for Sen. Loeffler is headed to a runoff, and Sen. Perdue’s lead is right at 50% and has not been called either. If that were to slip below 50%, there could be a second runoff. Control of the Senate may ultimately be determined by the January 5th Georgia runoff. Democrats will need two of these seats plus a Biden win, or three seats without Biden, to take control of the Senate.

The one area where there is clarity is the U.S. House of Representatives. Democrats retained their majority in the House, but Republicans have exceeded expectations with a current net gain of at least four seats.

To help make sense of this all, our partners at Ogilvy Government Relations have prepared a 2020 post-election analysis, which provides an excellent overview of the current state of play and the potential impacts of the 2020 election. In addition, to explain the impacts of the election in more detail and provide an update on where things stand in the presidential and Senate races, the IPA will host a members-only Post Election Analysis Call on Thursday, November 5th at 3 PM ET. On the call, political consultants from Ogilvy GR will provide an analysis of the election including a discussion of (i) the results of the election and insight into who might occupy key congressional leadership positions, (ii) how the election results may impact the priorities of the 117th Congress, and (iii) potential executive-level appointments. To join the November 5th Post Election Analysis Call, please register here.

FEDERAL RESERVE
 
Federal Reserve Releases Detailed Data on Noncash Payments
 
On October 29, the Federal Reserve released detailed data about noncash payments in the United States from 2012 to 2018. This release supplements top-line data from the 2019 Federal Reserve Payments Study (FRPS), previously reported in December 2019.   
 
The FRPS Detailed Data Release includes new information about core noncash payments and some evolving areas of payments:

• The estimated number and value of checks for 2018 are revised to 14.0 billion and $26.8 trillion, respectively. As a result, the estimated decline in the number of checks from 2015 to 2018 is revised to 8.2 percent per year, steeper than the previously reported 7.2 percent per year decline. The estimated decline in the value of checks is revised to 2.8 percent per year, less steep than the previously reported 4.0 percent per year decline.
• Use of alternative payment methods and services continues to grow. For example, according to estimates from processors, the number of payments via person-to-person and money transfer services more than doubled from 2015 to 2018.
• Wire transfers originated by consumers grew at double-digit rates by both number and value from 2012 through 2018.

 
Details on the following highlights, previously reported in December, also are provided:

• Prepaid debit card payments accounted for 10.5 percent of all card payments in 2018 by number, a decrease from 11.1 percent in 2015. The number of prepaid debit card payments increased to 13.8 billion with a value of $0.35 trillion in 2018, an increase of 2.6 billion and $0.06 trillion from 2015.
• The number of ACH credit and debit transfers grew by 6.0 percent per year between 2015 and 2018, exceeding the 4.9 percent per-year growth rate recorded for 2012 to 2015.  
• Debit and credit card payments grew at an accelerated rate of 8.9 percent per year between 2015 and 2018, up from the 6.8 percent yearly rate of increase from 2012 to 2015.  
• For general-purpose cards overall, the value of remote payments in 2018 nearly equaled that of in-person payments.

 
The detailed data include a spreadsheet with 11 tabs for accounts, cards, and payment instrument use as well as a release note describing the data sources and allocations. The December report of the 2019 Federal Reserve Payments Study, glossaries, and questionnaires also are posted. 
 
The detailed data and the December report can accessed here.
 
MULTI-AGENCY
 
Financial Regulatory Agencies Propose Regulation on the Role of Supervisory Guidance
 
On October 29, five federal financial regulatory agencies today released a Notice of Proposed Rulemaking (NPR) inviting comment on a proposed rule that would codify the Interagency Statement Clarifying the Role of Supervisory Guidance issued by the agencies on September 11, 2018. The Statement clarified that, unlike a law or regulation, supervisory guidance does not have the force and effect of law and, as such, does not create binding legal obligations for the public. 
 
According to the NPR, the proposed rule is intended to confirm that the agencies will continue to follow and respect the limits of administrative law in carrying out their supervisory responsibilities. The proposal would also clarify that the 2018 Statement, as amended, is binding on the agencies.
 
The five agencies that are party to the NPR include: 

• The Office of the Comptroller of the Currency, Treasury; 
• The Board of Governors of the Federal Reserve System; 
• The Federal Deposit Insurance Corporation; 
• The National Credit Union Administration; and 
• The Bureau of Consumer Financial Protection

 
Comments will be accepted for 60 days following publication in the Federal Register. The full NPR can be accessed here.

MULTI-AGENCY
 
Financial Regulatory Agencies Propose Regulation on the Role of Supervisory Guidance
 
On October 29, five federal financial regulatory agencies today released a Notice of proposed Rulemaking (NPR) inviting comment on a proposed rule that would codify the Interagency Statement Clarifying the Role of Supervisory Guidance issued by the agencies on September 11, 2018. The Statement clarified that, unlike a law or regulation, supervisory guidance does not have the force and effect of law and, as such, does not create binding legal obligations for the public. 
 
According to the NPR, the proposed rule is intended to confirm that the agencies will continue to follow and respect the limits of administrative law in carrying out their supervisory responsibilities. The proposal would also clarify that the 2018 Statement, as amended, is binding on the agencies.
 
The five agencies that are party to the NPR include: 

• The Office of the Comptroller of the Currency, Treasury; 
• The Board of Governors of the Federal Reserve System; 
• The Federal Deposit Insurance Corporation; 
• The National Credit Union Administration; and 
• The Bureau of Consumer Financial Protection

 
Comments will be accepted for 60 days following publication in the Federal Register. The full NPR can be accessed here.

Reps. Tlaib & Ocasio-Cortez Introduce Public Banking Legislation 
 
On October 30, Congresswomen Rashida Tlaib (D-MI) and Alexandria Ocasio-Cortez (D-NY) introduced the Public Banking Act (H.R. 8721), which allows for the creation of state and locally administered public banks by establishing the Public Bank Grant program administered by the Secretary of the Treasury and the Federal Reserve Board which would provide grants for the formation, chartering and capitalization of public banks. It also codifies that public banks may be members of the Federal Reserve. The legislation also creates a pathway for state-chartered banks to gain federal recognition and provides a framework for public banks to interact with Fed Accounts, postal banking, and Digital Dollar platforms.
 
It also: 

• Allows the Secretary of the Treasury and the Federal Reserve Board to provide public banks grants for: bank formation, capitalization, developing financial market infrastructure, supporter operations, covering unexpected losses, and more without the requirement to provide matching funds.
• Allows the Federal Reserve to charter and grant membership to public banks, and in conjunction with the appropriate federal agencies, establish a separate regulatory scheme with respect to these.
• Establishes public banking incubator program to provide technical assistance to public member banks to develop technologies, practices, and data that promote public welfare.
• Establishes new liquidity and credit facilities at the Federal Reserve to provide direct federal support to state and local public banks and their communities;
• Prohibits investment in fossil fuel projects.

 
The legislation currently has nine co-sponsors, all of whom are Democrats, and has been referred to the Committee on Financial Services, and in addition to the Committee on Oversight and Reform. Additional information can be found here. 
 
It is unlikely that this legislation will be considered in the 116th Congress. However, this proposal and others like it (postal banking, FedAccounts, pass-through wallets, etc.) will likely be priorities for Democrats in the 117th Congress.

​None.

New Federal Laws
 
None.

Pending Federal Bills
 
H.R. 189--Financial Institution Customer Protection Act of 2019
Summary: This bill specifies that a federal banking agency cannot request or order a financial institution to close a customer account unless the agency has a valid reason for doing so, and that reason cannot be only reputational risk.
Introduced:  Jan. 3, 2019
Status: The bill was referred to the House Committee on Financial Services on Jan. 3, 2019.
Sponsor: Rep. Blaine Luetkemeyer (R-MO); 0 co-sponsors. 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/189/all-actions?q=%7B%22search%22%3A%5B%22hr+189%22%5D%7D&s=2&r=1
 
H.R. 758--Cooperate with Law Enforcement Agencies and Watch Act of 2019
Summary: The bill would protect institutions from regulatory action for keeping accounts open at the request of law enforcement.
Introduced:  Jan. 24, 2019
Status: The bill was received in the Senate, read twice, and referred to the Committee on Banking, Housing, and Urban Affairs on March 12, 2019.
Sponsor: Rep. J. French Hill (R-AR); 2 co-sponsors. 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/758/cosponsors?q=%7B%22search%22%3A%5B%22hr+758%22%5D%7D&r=1&s=1
 
H.R. 907—To Clarify Exclusions from the Definition of a Deposit Broker
Summary: The bill would amend the Federal Deposit Insurance Act (“FDIA”) to clarify the exemptions from the definition of a “deposit broker.” Specifically, the bill would amend FDIA Section 29(g)(2)(I) to provide that a deposit broker does not include an agent or nominee (i) whose primary business purpose is not the placement of deposits with an insured financial institution; or (ii) who is an exclusive agent of an insurance company or insured depository institution affiliated with an insurance company, provided that the agent or nominee is, among other things, contractually prohibited from placing funds with any other unaffiliated depository institution.
Introduced:  Jan. 30, 2019
Status: The bill was referred to the House Committee on Financial Services on Jan. 30, 2019.
Sponsor: Rep. Darin LaHood (R-IL); 2 co-sponsors. 3% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/house-bill/907/text?r=55&s=1
 
H.R. 1423—Forced Arbitration Injustice Repeal (FAIR) Act
Summary: The bill would prohibit forced arbitration agreements and any agreements that would preclude class action lawsuits. 
Introduced:  Feb. 28, 2019
Status:  Received in the Senate and Read twice and referred to the Committee on the Judiciary on September 24, 2019.
Sponsor: Rep. Johnson, Henry C. “Hank,” Jr. (D-GA); 222 cosponsors. 3% chance of enactment (according to govtrack). 
Details: https://www.congress.gov/bill/116th-congress/house-bill/1423
 
H.R. 2514—Counter Act of 2019
Summary: This bill would make changes to the Bank Secrecy Act and anti-money laundering laws. It would require the financial regulators and Financial Crimes Enforcement Network to each appoint a civil liberties and privacy officer who would need to consult on any new regulations. It would create a public-private information sharing program between FinCEN and the financial services industry, and it would require AML training for examiners. 
Introduced: May 3, 2019
Status: The bill passed the House of Representatives on October 28, 2019 and was received in the Senate and referred to the Senate Banking Committee on October 29, 2019.
Sponsor: Rep. Emanuel Cleaver (D-MO); 2 co-sponsors, 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/2514?q=%7B%22search%22%3A%5B%22hr2514%22%5D%7D&r=1&s=2
 
H.R. 2630—Cash Always Should be Honored (CASH) Act
Summary: This bill would make it unlawful for any physical retail establishment to refuse to accept cash as payment.
Introduced:  May 9, 2019
Status: The bill was referred to the House Committee on Energy and Commerce on May 9, 2019.
Sponsor: Rep. David Cicilline (D-RI); 10 co-sponsors. 3% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/house-bill/2630
 
H.R. 4501— Consumer Transaction Account Protection Act of 2019
Summary: This bill would specify that consumer transaction account deposits of an insured depository institution shall not be considered to be funds obtained through a deposit broker.
Introduced:  September 26, 2019
Status: The bill was referred to the House Committee on Financial Services on September 26, 2019.
Sponsor: Rep. Roger Williams (R-TX); 1 co-sponsor. 3% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/house-bill/4501?r=11&s=1
 
H.R. 4767—Financial Services Innovation Act of 2019
Summary: The bill requires federal regulators to create Financial Services Innovation Offices (FSIOs) within their agencies to foster innovation in financial services. Companies would also be able to apply for an “enforceable compliance agreement” with the FSIOs that, if accepted, will allow them to provide an innovative product or service under an alternative compliance plan.
Introduced:  Oct. 21, 2019
Status: The bill was referred to the House Financial Services Committee and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. On Nov. 11, 2019 it was referred to the Subcommittee on Commodity Exchanges, Energy, and Credit of the Committee on Agriculture.
Sponsor: Rep. Patrick McHenry (R-NC); 1 co-sponsor; 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/4767?q=%7B%22search%22%3A%5B%224767%22%5D%7D&s=1&r=1
 
H.R. 6116-- Consumer Financial Protection Commission Act
Summary: The bill would convert the leadership structure of the CFPB from a sole director to a commission. The commission would be made up of 5 members who are appointed by the president and approved by the Senate to serve 5-year terms. No more than 3 members of the commission would be allowed to be from the same political party. The name of the Bureau would also be changed to the Consumer Financial Protection Commission. 
Introduced:  March 5, 2020
Status: The bill was referred to the House Financial Services Committee.
Sponsor: Rep. Blaine Luetkemeyer (R-MO); 25 co-sponsors; 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/6116/cosponsors?r=4&s=1&searchResultViewType=expanded&KWICView=false
 
H.R. 6241-- Touchless Transactions Act of 2020
Summary: The bill would eliminate signatures for swipe, dip, or tap point-of-sale transactions.
Introduced:  March 12, 2020
Status: The bill was referred to the House Financial Services Committee.
Sponsor: Rep. French Hill (R-AR); 10 co-sponsors; 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/6241?q=%7B%22search%22%3A%5B%22hr+6241%22%5D%7D&s=2&r=1
 
H.R. 8721-- Public Banking Act of 2020
Summary: The bill would which allows for the creation of state and locally administered public banks by establishing the Public Bank Grant program administered by the Secretary of the Treasury and the Federal Reserve Board which would provide grants for the formation, chartering and capitalization of public banks. It also codifies that public banks may be members of the Federal Reserve. The legislation also creates a pathway for state-chartered banks to gain federal recognition and provides a framework for public banks to interact with Fed Accounts, postal banking, and Digital Dollar platforms.
Introduced:  October 30, 2020
Status: Referred to the Committee on Financial Services, and in addition to the Committee on Oversight and Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Sponsor: Reps. Rashida Tlaib (D-MI) and Alexandria Ocasio-Cortez (D-NY); 9 co-sponsors; % chance of enactment not yet available (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/house-bill/8721?s=1&r=1
 
S. 142—The American Data Dissemination Act
Summary: The bill would impose privacy requirements on providers of internet services similar to the requirements imposed on federal agencies under the Privacy Act of 1974.
Introduced: Jan. 16. 2019
Status: The bill was referred to the Senate Commerce, Science, and Transportation Committee on Jan. 16, 2019.
Sponsor: Sen. Marco Rubio (R-FL), 0 co-sponsors, 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/senate-bill/142/text?q=%7B%22search%22%3A%5B%22S.142%22%5D%7D&r=1&s=3
 
S. 149—Stop Senior Scams Act
Summary:  The bill would establish an advisory council made up of federal regulators and industry representatives from, among others, gift card and prepaid card companies, to collect and review information in the development of model materials to provide to retailers, financial services companies, and wire-transfer companies to be used to educate employees on how to identify and prevent scams affecting seniors.
Introduced: Jan. 16, 2019
Status: Passed the Senate on June 16, 2020 by unanimous consent and was sent to the House of Representatives for further consideration. 
Sponsor:  Sen. Robert Casey (D-PA); 2 co-sponsors, 83% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/senate-bill/149/text?q=%7B%22search%22%3A%5B%22S.149%22%5D%7D&r=1&s=2
 
S. 189—The Social Media Privacy Protection and Consumer Rights Act of 2019
Summary: This bill requires online platform operators to inform a user, prior to a user creating an account or otherwise using the platform, that the user’s personal data produced during online behavior will be collected and used by the operator and third parties.
Introduced: Jan. 17, 2019
Status: Read twice and referred to the Committee on Commerce, Science, and Transportation on Jan. 17, 2019
Sponsor:  Sen. Amy Klobuchar (D-MN); 3 co-sponsors, 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/senate-bill/189/text?q=%7B%22search%22%3A%5B%22S.189%22%5D%7D&r=1&s=1
 
S. 453—A Bill to Amend the Consumer Financial Protection Act of 2010 to Subject the Bureau of Consumer Financial Protection to the Regular Appropriations Process
Summary: The bill would amend the Consumer Financial Protection Act of 2010 to subject the Consumer Financial Protection Bureau to the regular appropriations process.
Introduced:  Feb. 12, 2019
Status:  Read twice and referred to the Committee on Banking, Housing, and Urban Affairs on Feb. 12, 2019.
Sponsor: Sen. David Perdue (R-GA); 18 cosponsors. 3% chance of enactment (according to govtrack). 
Details: https://www.congress.gov/bill/116th-congress/senate-bill/453
 
S. 3108— Consumer Transaction Account Protection Act of 2019
Summary: This bill would specify that consumer transaction account deposits of an insured depository institution shall not be considered to be funds obtained through a deposit broker.
Introduced:  December 19, 2020
Status: The bill was referred to the Committee on Banking, Housing, and Urban Affairs on December 19, 2019.
Sponsor: Sen. Doug Jones (D-AL); 2 co-sponsors. 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/senate-bill/3108?q=%7B%22search%22%3A%5B%22brokered+deposits%22%5D%7D&s=4&r=2
 
S. 3962— Asset Growth Restriction Act of 2020
Summary: The bill would strike the current legal framework for brokered deposits and replace it with an authorization for the FDIC to limit the asset growth of financially troubled banks by regulation, rule, or order.
Introduced:  June 15, 2020
Status: The bill was referred to the Committee on Banking, Housing, and Urban Affairs on June 15, 2020.
Sponsor: Sen. Jerry Moran (R-KS); 0 co-sponsors. 1% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/senate-bill/3962?s=7&r=9
 
S. 4159 — E-SIGN Modernization Act of 2020
Summary: The bill would remove the requirement that consumers “ reasonably demonstrate” that they can access the disclosures that are the subject of the consent, through a website or e-mail, for example, after they’ve specifically asked to go paperless.
Introduced:  July 2, 2020
Status: The bill was marked-up and approved by the Commerce Committee on September 16, 2020.
Sponsor: Sen. John Thune (R-SD); 3 co-sponsors. 15% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/senate-bill/3962?s=7&r=9

​​​​​​​​​​​​​​is issued by the Innovative Payments Association twenty times a year as a service to members.
Editors: Brian Tate, President and CEO, IPA; Ben Jackson, COO, IPA;  Grant Hannah, Director of Government Relations, IPA; Eli Rosenberg, Partner, Baird Holm LLP; and Gray Derrick, Partner, Baird Holm LLP.
Please address comments and suggestions to: gr@ipa.org.

NEW FEDERAL LAWS
None.



PENDING FEDERAL BILLS
H.R. 189--Financial Institution Customer Protection Act of 2019
Summary: This bill specifies that a federal banking agency cannot request or order a financial institution to close a customer account unless the agency has a valid reason for doing so, and that reason cannot be only reputational risk.
Introduced: Jan. 3, 2019
Status: The bill was referred to the House Committee on Financial Services on Jan. 3, 2019.
Sponsor: Rep. Blaine Luetkemeyer (R-MO); 0 co-sponsors. 4% chance of enactment (according to govtrack).
Details
H.R. 758--Cooperate with Law Enforcement Agencies and Watch Act of 2019
Summary: The bill would protect institutions from regulatory action for keeping accounts open at the request of law enforcement.
Introduced: Jan. 24, 2019
Status: The bill was received in the Senate, read twice, and referred to the Committee on Banking, Housing, and Urban Affairs on March 12, 2019.
Sponsor: Rep. J. French Hill (R-AR); 2 co-sponsors. 4% chance of enactment (according to govtrack). 
Details

H.R. 907--To Clarify Exclusions from the Definition of a Deposit Broker
Summary: The bill would amend the Federal Deposit Insurance Act (“FDIA”) to clarify the exemptions from the definition of a “deposit broker.” Specifically, the bill would amend FDIA Section 29(g)(2)(I) to provide that a deposit broker does not include an agent or nominee (i) whose primary business purpose is not the placement of deposits with an insured financial institution; or (ii) who is an exclusive agent of an insurance company or insured depository institution affiliated with an insurance company, provided that the agent or nominee is, among other things, contractually prohibited from placing funds with any other unaffiliated depository institution.
Introduced: Jan. 30, 2019
Status: The bill was referred to the House Committee on Financial Services on Jan. 30, 2019. Sponsor: Rep. Darin LaHood (R-IL); 2 co-sponsors. 4% chance of enactment (according to govtrack). 
Details

H.R. 1423--Forced Arbitration Injustice Repeal (FAIR) Act
Summary: The bill would prohibit forced arbitration agreements and any agreements that would preclude class action lawsuits.
Introduced: Feb. 28, 2019
Status: Received in the Senate and Read twice and referred to the Committee on the Judiciary on September 24, 2019. Sponsor: Rep. Johnson, Henry C. “Hank,” Jr. (D-GA); 222 cosponsors. 4% chance of enactment (according to govtrack). Details

H.R. 2514--COUNTER ACT OF 2019
Summary: This bill would make changes to the Bank Secrecy Act and anti-money laundering laws. It would require the financial regulators and Financial Crimes Enforcement Network to each appoint a civil liberties and privacy officer who would need to consult on any new regulations. It would create a public-private information sharing program between FinCEN and the financial services industry, and it would require AML training for examiners.
Introduced: May 3, 2019
Status: The bill passed the House of Representatives on October 28, 2019 and was received in the Senate and referred to the Senate Banking Committee on October 29, 2019.
Sponsor: Rep. Emanuel Cleaver (D-MO); 2 co-sponsors, 4% chance of enactment (according to govtrack).
Details
H.R. 2630--CASH ALWAYS SHOULD BE HONORED (CASH) ACT
Summary: This bill would make it unlawful for any physical retail establishment to refuse to accept cash as payment. Introduced: May 9, 2019
Status: The bill was referred to the House Committee on Energy and Commerce on May 9, 2019.
Sponsor: Rep. David Cicilline (D-RI); 10 co-sponsors. 4% chance of enactment (according to govtrack).
Details
H.R. 4501— CONSUMER TRANSACTION ACCOUNT PROTECTION ACT OF 2019
Summary: This bill would specify that consumer transaction account deposits of an insured depository institution shall not be considered to be funds obtained through a deposit broker.
Introduced: September 26, 2019
Status: The bill was referred to the House Committee on Financial Services on September 26, 2019. 
Sponsor: Rep. Roger Williams (R-TX); 1 co-sponsor. 4% chance of enactment (according to govtrack).
Details

H.R. 4767--FINANCIAL SERVICES INNOVATION ACT OF 2019
Summary: The bill requires federal regulators to create Financial Services Innovation Offices (FSIOs) within their agencies to foster innovation in financial services. Companies would also be able to apply for an “enforceable compliance agreement” with the FSIOs that, if accepted, will allow them to provide an innovative product or service under an alternative compliance plan.
Introduced: Oct. 21, 2019
Status: The bill was referred to the House Financial Services Committee and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. On Nov. 11, 2019 it was referred to the Subcommittee on Commodity Exchanges, Energy, and Credit of the Committee on Agriculture.
Sponsor: Rep. Patrick McHenry (R-NC); 1 co-sponsor; 4% chance of enactment (according to govtrack). 
Details:

H.R. 6116— CONSUMER FINANCIAL PROTECTION COMMISSION ACT
Summary: The bill would eliminate signatures for swipe, dip, or tap point-of-sale transactions.
Introduced: March 5, 2020
Status: The bill was referred to the House Financial Services Committee.
Sponsor: Rep. Blaine Luetkemeyer (R-MO); 25 co-sponsors; 4% chance of enactment (according to govtrack).
Details

H.R. 6241— TOUCHLESS TRANSACTIONS ACT OF 2020
Summary: The bill would convert the leadership structure of the CFPB from a sole director to a commission. The commission would be made up of 5 members who are appointed by the president and approved by the Senate to serve 5- year terms. No more than 3 members of the commission would be allowed to be from the same political party. The name of the Bureau would also be changed to the Consumer Financial Protection Commission.
Introduced: March 12, 2020
Status: The bill was referred to the House Financial Services Committee.
Sponsor: Rep. French Hill (R-AR); 10 co-sponsors; 4% chance of enactment (according to govtrack).

S. 142—The American Data Dissemination Act
​Summary: The bill would impose privacy requirements on providers of internet services similar to the requirements imposed on federal agencies under the Privacy Act of 1974.
Introduced: Jan. 16. 2019
Status: The bill was referred to the Senate Commerce, Science, and Transportation Committee on Jan. 16, 2019. Sponsor: Sen. Marco Rubio (R-FL), 0 co-sponsors, 4% chance of enactment (according to govtrack).
Details

​S. 149—Stop Senior Scams Act
Summary:  The bill would establish an advisory council made up of federal regulators and industry representatives from, among others, gift card and prepaid card companies, to collect and review information in the development of model materials to provide to retailers, financial services companies, and wire-transfer companies to be used to educate employees on how to identify and prevent scams affecting seniors.
Introduced: Jan. 16, 2019
Status: Passed the Senate on June 16, 2020 by unanimous consent and was sent to the House of Representatives for further consideration. 
Sponsor:  Sen. Robert Casey (D-PA); 2 co-sponsors, 83% chance of enactment (according to govtrack).
Details:

S. 189—The Social Media Privacy Protection and Consumer Rights Act of 2019
Summary: This bill requires online platform operators to inform a user, prior to a user creating an account or otherwise using the platform, that the user’s personal data produced during online behavior will be collected and used by the operator and third parties.
Introduced: Jan. 17, 2019
Status: Read twice and referred to the Committee on Commerce, Science, and Transportation on Jan. 17, 2019
Sponsor:  Sen. Amy Klobuchar (D-MN); 3 co-sponsors, 4% chance of enactment (according to govtrack).
Details
 
S. 453—A Bill to Amend the Consumer Financial Protection Act of 2010 to Subject the Bureau of Consumer Financial Protection to the Regular Appropriations Process
Summary: The bill would amend the Consumer Financial Protection Act of 2010 to subject the Consumer Financial Protection Bureau to the regular appropriations process.
Introduced:  Feb. 12, 2019
Status:  Read twice and referred to the Committee on Banking, Housing, and Urban Affairs on Feb. 12, 2019.
Sponsor: Sen. David Perdue (R-GA); 18 cosponsors. 4% chance of enactment (according to govtrack). 
Details

S. 3108— Consumer Transaction Account Protection Act of 2019
Summary: This bill would specify that consumer transaction account deposits of an insured depository institution shall not be considered to be funds obtained through a deposit broker.
Introduced:  December 19, 2020
Status: The bill was referred to the Committee on Banking, Housing, and Urban Affairs on December 19, 2019.
Sponsor: Sen. Doug Jones (D-AL); 2 co-sponsors. 4% chance of enactment (according to govtrack).
Details
 
S. 3962— Asset Growth Restriction Act of 2020
Summary: The bill would strike the current legal framework for brokered deposits and replace it with an authorization for the FDIC to limit the asset growth of financially troubled banks by regulation, rule, or order.
Introduced:  June 15, 2020
Status: The bill was referred to the Committee on Banking, Housing, and Urban Affairs on June 15, 2020.
Sponsor: Sen. Jerry Moran (R-KS); 0 co-sponsors. 1% chance of enactment (according to govtrack).
Details
 
S. 4159 — E-SIGN Modernization Act of 2020
Summary: The bill would remove the requirement that consumers “ reasonably demonstrate” that they can access the disclosures that are the subject of the consent, through a website or e-mail, for example, after they’ve specifically asked to go paperless.
Introduced:  July 2, 2020
Status: The bill was marked-up and approved by the Commerce Committee on September 16, 2020.
Sponsor: Sen. John Thune (R-SD); 3 co-sponsors. 15% chance of enactment (according to govtrack).
Details
 

​​​​​​​​​​​​​is issued by the Innovative Payments Association twenty times a year as a service to members.
Editors: Brian Tate, President and CEO, IPA; Ben Jackson, COO, IPA;  Grant Hannah, Director of Government Relations, IPA; Eli Rosenberg, Partner, Baird Holm LLP; and Gray Derrick, Partner, Baird Holm LLP.
Please address comments and suggestions to: gr@ipa.org.

IPA Launches Webpage for Prepaid Rule Litigation Resources
 
On December 11, 2019, PayPal, Inc. filed a lawsuit in the United States District Court for the District of Columbia challenging the Consumer Financial Protection Bureau’s Prepaid Rule that took effect on April 1, 2019. In the time since the suit was filed, there have been numerous filings and documents that have been filed as the case has progressed. In order to consolidate the filings and offer IPA members a convenient way to access them, the IPA has launched a new webpage dedicated the case. On the new page, you’ll find an up to date list of documents that have been filed in the case with links to access them. New documents will be added to this page as they become available. 
 
The webpage can be accessed here.
 
IPA Accepting Nominations for its First Community Service Awards
 
You Asked. We Listened. Submit your nominations for the inaugural IPA Community Service Awards. Nominations are due by 5pm Eastern on October 30, 2020. 
​
Volunteer of the Year honors the payments professional who demonstrates a deep commitment to voluntarism. 
 
Best Local Community Service recognizes work that payments companies do to directly support their communities.
 
Best Nonprofit Digital Campaign recognizes the ways in which payments companies use their technological expertise to raise money, bring awareness, or gather other resources to support the mission of organizations that have a positive impact on people’s lives. 
 
Financial Empowerment Award recognizes payments companies’ efforts to help their customers and communities improve their financial situations through efforts such as financial literacy programs, savings programs, or innovative lending programs. 
 
Learn more and submit your nominations here!
 
IPA Webinar: IPA Election Overview
​The November 2020 general election is fast approaching. The outcome of the election will determine which party controls the presidency, House, and Senate. Consequently, the outcome of the election could lead to seismic shifts in the legislative and regulatory environment for payments. Join the IPA on October 14 as we provide an overview of the current election and campaign landscape and breakdown the latest polling with less than a month to go.
 
This event is for IPA Members only. Register here!
 
IPA Webinar: Potential Threats to FinTech in 2021
 
Next year (2021) is shaping up to be a year where policymakers make earnest attempts to learn more about the rapidly evolving payment sector. While 2020 is not over yet, it will likely be remembered as a year for the history books. With the emergence of COVID-19, policymakers focused on responding to the public health crisis and resulting economic impact by stabilizing the economy with direct federal financial support via a variety of avenues – including electronic payments. The emergence of electronic payments during the national crisis has fundamentally shifted the policy landscape for the entire banking ecosystem.  
 
Join us on October 14th, as part of the IPA’s Fall Semester series of webinars, we’ll explore Potential Threats to Fintech in 2021. We’ll also breakdown different product segments like digital wallets, cryptocurrency, POS lending, wage advance, and others and highlight the potential impact the various electoral outcomes could have on the payments community. We hope you’ll join us!
 
Register here!
 
Interested in the Canadian Market? The CPPO Virtual Symposium is Happening Oct. 14-15
 
The fourth annual CPPO Symposium is the premier event for the prepaid technology industry, fueling the transformation to digital banking in Canada. Attended by leaders in fintech, banking, payments and government, the Symposium is ideal for learning about the $5 billion Canadian prepaid technology industry. It will include sessions covering the prepaid regulatory environment, global financial health, innovative fintech partnerships and more!
 
The CPPO Symposium is going virtual this year, October 14-15, 2020, from 11:00 a.m. to 3:00 p.m. Eastern Time. Register today!

DEPARTMENT OF THE TREASURY
IPA and ATPC Send Letter to IRS & Treasury on Potential Future Stimulus Payments
On September 28, the IPA and the American Transaction Processors Coalition (ATPC) sent a joint letter to the Department of the Treasury and Internal Revenue Service on potential future stimulus payments. In brief, the letter highlights the critical role the prepaid card industry has played in helping connect individual Americans and businesses with critically needed economic support from federal and state entities. In addition, the letter outlines four steps that could build upon Treasury and IRS’s success in delivering Economic Impact Payments earlier this year to ensure that a potential additional round of stimulus payments to Americans would be distributed as efficiently as possible. These include:

• Designating EIP payments as such in the ACH record, so that payment processors can distinguish EIP payments from all other ACH payments; 
• Continuing to leverage the Direct Express, U.S. Debit, and other federal disbursement programs; 
• Continuing to utilize the Non-Filers, and Get My Payment portals; and
• Expanding and encouraging the use of electronic payments by updating the IRS’s FAQs on the IRS website to make it clearer that Americans who have prepaid accounts can register their accounts, alongside savings and checking accounts, to receive a faster EIP payment.  

 
The letter concludes by thanking Treasury and IRS for their thoughtfulness, diligence, and dedication to the American people and reiterates the payments community’s readiness to work with Treasury and IRS to make sure any economic support approved by Congress reaches its intended recipients.
 
A copy of the full letter can be accessed here.

CONSUMER FINANCIAL PROTECTION BUREAU (CFPB)
Consumer Financial Protection Bureau Files Response to PayPal in Prepaid Rule Litigation
 
On September 25, the Consumer Financial Protection Bureau (Bureau) filed its response to PayPal’s August reply in support for their motion for summary judgement in the ongoing litigation over the Bureau’s Prepaid Rule (Rule). In brief, the Bureau asserts that it acted well within its authority in adopting the short-form disclosure requirements and the 30-day waiting period for linking credit to a prepaid account. The Bureau further reiterates its previous arguments to support its position. Namely, it lays out that both the Electronic Funds Transfer Act and the Dodd-Frank Act authorize the short-form disclosure requirements and that both the Truth in Lending Act and the Dodd-Frank Act authorize the 30-day waiting period. The Bureau concludes by stating that the Court should rule in favor of the Bureau. 
 
The next step in the case will likely be for Judge Richard Leon to schedule oral arguments, though nothing has been put on the schedule yet.
 
The Bureau’s filing can be accessed here.
 
Consumer Financial Protection Bureau Issues Policy Statement on Applications for Early Termination Of Consent Orders
 
On October 5, the Consumer Financial Protection Bureau (Bureau) issued a policy statement on applications for early termination of administrative consent orders (Consent Orders).  The policy statement outlines the early termination application process for entities subject to a Consent Order and the standards that the Bureau intends to use when evaluating applications.
 
According to the Bureau, in order for a Consent Order to be terminated early, an entity should demonstrate that it meets certain threshold eligibility criteria, has fully complied with the terms of the Consent Order, and has a satisfactory compliance management system in applicable areas. The Bureau says these conditions are designed to minimize the risk of new violations of law by the company and to protect consumers.   
 
Additional information can be found here. 
 
OFFICE OF THE COMPTROLLER OF THE CURRENCY (OCC)
OCC Announces Federally Chartered Banks and Thrifts May Engage in Certain Stablecoin Activities
 
On September 21, the OCC published a letter clarifying national banks' and federal savings associations' authority to hold "reserves" on behalf of customers who issue certain stablecoins.
 
The letter responds to questions regarding the application of stablecoin-related bank activities. It concludes national banks and federal savings associations may hold "reserves" on behalf of customers who issue stablecoins, in situations where the coins are held in hosted wallets. The letter addresses the use of stablecoins backed by a single fiat currency on a one-to-one basis where the bank verifies at least daily that reserve account balances meet or exceed the number of the issuer's outstanding stablecoins.
 
Additional information can be found here. 
​
FEDERAL RESERVE BOARD OF GOVERNORS (FED)
Fed Releases 2019 Survey of Consumer Finances
 
The Federal Reserve has released their triennial Survey of Consumer Finances. The survey collects information about family income, net worth, balance sheet components, credit use, and other financial outcomes. 
 
The 2019 survey found that, in the three years between 2016-2019: 

• Real gross domestic product grew at an annual rate of 2.5 percent, and the civilian unemployment rate fell from 5.0 percent to 3.8 percent.
• Median family income rose 5 percent, and mean family income decreased 3 percent.
• Median net worth grew 18 percent, and mean net worth rose a modest 2 percent.
• Families near the bottom of the income and wealth distributions generally continued to experience gains in median and mean net worth between 2016 and 2019.

 
The full report can be accessed here. 

​Recap of Task Force on Financial Technology Hearing on Chaters
 
On September 29, the House Financial Services Committee’s Task Force on Financial Technology held a hearing entitled, “License to Bank: Examining the Legal Framework Governing Who Can Lend and Process Payments in the Fintech Age.” Below, please find a recap of the hearing. 
 
Recap 

• Witness opening statements ran the gamut and two of the witnesses spoke about the potential risks of allowing non-depositories and specifically big tech from accessing bank charters. Another called for a national licensing scheme for money service businesses, though he noted that this does not necessarily have to be a bank charter. 
• There was a lot of discussion around big tech accessing bank charters then becoming too big to fail and requiring a government bailout. This was topic that Democrats, in particular, inquired about. Witnesses’ oferred solutions ranging from a closing of the ILC loophole, to stronger regulation at the bank holding level, to introducing public banking options like FedAccunts and postal banking to introduce competitive pressure. 
• There was a heavy focus on cryptocurrency/blockchain from Republicans. Specifically, ensuring that United States retained its competitive advantage and remained a leader in innovation with this technology was a focus. They called for the regulatory framework around crypto and blockchain to be updated and unified to ensure that innovation continues. 
• Republican members mentioned the digital dollar and said that they were encouraged by the Fed’s work in this area. 
• Additionally, the Ranking Member of the Task Force, Rep. Tom Emmer called for the Task Force to be elevated to a subcommittee in the next Congress. 

 
A recording of the hearing can be accessed here.

None.

California Enacts “Mini-CFPB” Law, Significantly Altering Financial Services Regulation in the State
By: Jeremy McLaughlin & Mehreen Ahmed, K&L Gates
 
On September 25, California Governor Newsom signed AB-1864 into law, which will significantly change the landscape of consumer financial service regulation in the state. The law renames the Department of Business Oversight as the Department of Financial Protection and Innovation (“DFPI”). Along with a new name, the DFPI also gains important enforcement powers as the agency will now have the power to enforce all California laws related to “persons offering or providing consumer financial products or services in the state.” The law allows DFPI to establish a “Financial and Technology Innovation Office.” A key aim of the law is to improve the state’s consumer protection capacity by increasing the number of investigators and attorneys to oversee financial institutions.
​The new legislation has been dubbed a “Mini-CFPB” bill because it includes the California Consumer Financial Protection Law (“CCFPL”), which allows DFPI to regulate unlawful, deceptive, or abusive acts or practices (“UDAAP”)—a power identical to that granted to the Consumer Financial Protection Bureau (“CFPB”) through the Dodd-Frank Act. The law expands the type of entities that are subject to regulatory oversight, including service providers and affiliates acting as a service provider. In addition to regulating money transmitters, banks, and finance lenders, the agency can now also regulate fintech companies, debt collectors, and credit reporting agencies, although a variety of entities are exempted. The law also contains new registration requirements, which would often involve paying a fee, background checks for certain personnel who control the business, obtaining a bond, and showing audited financial statements. 
 
Perhaps one of the most significant aspects of the law is the broad grant of enforcement powers to DFPI, including the power to bring administrative and civil actions seeking civil and monetary penalties as well as injunctive relief, issue subpoenas, promulgate regulations, hold hearings, issue publications, conduct investigations, and implement outreach and education programs. The law will take effect on January 1, 2021.

​New Federal Laws
 
None.

Pending Federal Bills
​
H.R. 189--Financial Institution Customer Protection Act of 2019
Summary: This bill specifies that a federal banking agency cannot request or order a financial institution to close a customer account unless the agency has a valid reason for doing so, and that reason cannot be only reputational risk.
Introduced:  Jan. 3, 2019
Status: The bill was referred to the House Committee on Financial Services on Jan. 3, 2019.
Sponsor: Rep. Blaine Luetkemeyer (R-MO); 0 co-sponsors. 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/189/all-actions?q=%7B%22search%22%3A%5B%22hr+189%22%5D%7D&s=2&r=1
 
H.R. 758--Cooperate with Law Enforcement Agencies and Watch Act of 2019
Summary: The bill would protect institutions from regulatory action for keeping accounts open at the request of law enforcement.
Introduced:  Jan. 24, 2019
Status: The bill was received in the Senate, read twice, and referred to the Committee on Banking, Housing, and Urban Affairs on March 12, 2019.
Sponsor: Rep. J. French Hill (R-AR); 2 co-sponsors. 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/758/cosponsors?q=%7B%22search%22%3A%5B%22hr+758%22%5D%7D&r=1&s=1
 
H.R. 907—To Clarify Exclusions from the Definition of a Deposit Broker
Summary: The bill would amend the Federal Deposit Insurance Act (“FDIA”) to clarify the exemptions from the definition of a “deposit broker.” Specifically, the bill would amend FDIA Section 29(g)(2)(I) to provide that a deposit broker does not include an agent or nominee (i) whose primary business purpose is not the placement of deposits with an insured financial institution; or (ii) who is an exclusive agent of an insurance company or insured depository institution affiliated with an insurance company, provided that the agent or nominee is, among other things, contractually prohibited from placing funds with any other unaffiliated depository institution.
Introduced:  Jan. 30, 2019
Status: The bill was referred to the House Committee on Financial Services on Jan. 30, 2019.
Sponsor: Rep. Darin LaHood (R-IL); 2 co-sponsors. 3% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/house-bill/907/text?r=55&s=1
 
H.R. 1423—Forced Arbitration Injustice Repeal (FAIR) Act
Summary: The bill would prohibit forced arbitration agreements and any agreements that would preclude class action lawsuits. 
Introduced:  Feb. 28, 2019
Status:  Received in the Senate and Read twice and referred to the Committee on the Judiciary on September 24, 2019.
Sponsor: Rep. Johnson, Henry C. “Hank,” Jr. (D-GA); 222 cosponsors. 3% chance of enactment (according to govtrack). 
Details: https://www.congress.gov/bill/116th-congress/house-bill/1423
 
H.R. 2514—Counter Act of 2019
Summary: This bill would make changes to the Bank Secrecy Act and anti-money laundering laws. It would require the financial regulators and Financial Crimes Enforcement Network to each appoint a civil liberties and privacy officer who would need to consult on any new regulations. It would create a public-private information sharing program between FinCEN and the financial services industry, and it would require AML training for examiners. 
Introduced: May 3, 2019
Status: The bill passed the House of Representatives on October 28, 2019 and was received in the Senate and referred to the Senate Banking Committee on October 29, 2019.
Sponsor: Rep. Emanuel Cleaver (D-MO); 2 co-sponsors, 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/2514?q=%7B%22search%22%3A%5B%22hr2514%22%5D%7D&r=1&s=2
 
H.R. 2630—Cash Always Should be Honored (CASH) Act
Summary: This bill would make it unlawful for any physical retail establishment to refuse to accept cash as payment.
Introduced:  May 9, 2019
Status: The bill was referred to the House Committee on Energy and Commerce on May 9, 2019.
Sponsor: Rep. David Cicilline (D-RI); 10 co-sponsors. 3% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/house-bill/2630
 
H.R. 4501— Consumer Transaction Account Protection Act of 2019
Summary: This bill would specify that consumer transaction account deposits of an insured depository institution shall not be considered to be funds obtained through a deposit broker.
Introduced:  September 26, 2019
Status: The bill was referred to the House Committee on Financial Services on September 26, 2019.
Sponsor: Rep. Roger Williams (R-TX); 1 co-sponsor. 3% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/house-bill/4501?r=11&s=1
 
H.R. 4767—Financial Services Innovation Act of 2019
Summary: The bill requires federal regulators to create Financial Services Innovation Offices (FSIOs) within their agencies to foster innovation in financial services. Companies would also be able to apply for an “enforceable compliance agreement” with the FSIOs that, if accepted, will allow them to provide an innovative product or service under an alternative compliance plan.
Introduced:  Oct. 21, 2019
Status: The bill was referred to the House Financial Services Committee and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. On Nov. 11, 2019 it was referred to the Subcommittee on Commodity Exchanges, Energy, and Credit of the Committee on Agriculture.
Sponsor: Rep. Patrick McHenry (R-NC); 1 co-sponsor; 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/4767?q=%7B%22search%22%3A%5B%224767%22%5D%7D&s=1&r=1
 
H.R. 6116-- Consumer Financial Protection Commission Act
Summary: The bill would eliminate signatures for swipe, dip, or tap point-of-sale transactions.
Introduced:  March 5, 2020
Status: The bill was referred to the House Financial Services Committee.
Sponsor: Rep. Blaine Luetkemeyer (R-MO); 25 co-sponsors; 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/6116/cosponsors?r=4&s=1&searchResultViewType=expanded&KWICView=false
 
H.R. 6241-- Touchless Transactions Act of 2020
Summary: The bill would convert the leadership structure of the CFPB from a sole director to a commission. The commission would be made up of 5 members who are appointed by the president and approved by the Senate to serve 5-year terms. No more than 3 members of the commission would be allowed to be from the same political party. The name of the Bureau would also be changed to the Consumer Financial Protection Commission. 
Introduced:  March 12, 2020
Status: The bill was referred to the House Financial Services Committee.
Sponsor: Rep. French Hill (R-AR); 10 co-sponsors; 3% chance of enactment (according to govtrack).
 
S. 142—The American Data Dissemination Act
Summary: The bill would impose privacy requirements on providers of internet services similar to the requirements imposed on federal agencies under the Privacy Act of 1974.
Introduced: Jan. 16. 2019
Status: The bill was referred to the Senate Commerce, Science, and Transportation Committee on Jan. 16, 2019.
Sponsor: Sen. Marco Rubio (R-FL), 0 co-sponsors, 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/senate-bill/142/text?q=%7B%22search%22%3A%5B%22S.142%22%5D%7D&r=1&s=3
 
S. 149—Stop Senior Scams Act
Summary:  The bill would establish an advisory council made up of federal regulators and industry representatives from, among others, gift card and prepaid card companies, to collect and review information in the development of model materials to provide to retailers, financial services companies, and wire-transfer companies to be used to educate employees on how to identify and prevent scams affecting seniors.
Introduced: Jan. 16, 2019
Status: Passed the Senate on June 16, 2020 by unanimous consent and was sent to the House of Representatives for further consideration. 
Sponsor:  Sen. Robert Casey (D-PA); 2 co-sponsors, 83% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/senate-bill/149/text?q=%7B%22search%22%3A%5B%22S.149%22%5D%7D&r=1&s=2
 
S. 189—The Social Media Privacy Protection and Consumer Rights Act of 2019
Summary: This bill requires online platform operators to inform a user, prior to a user creating an account or otherwise using the platform, that the user’s personal data produced during online behavior will be collected and used by the operator and third parties.
Introduced: Jan. 17, 2019
Status: Read twice and referred to the Committee on Commerce, Science, and Transportation on Jan. 17, 2019
Sponsor:  Sen. Amy Klobuchar (D-MN); 3 co-sponsors, 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/senate-bill/189/text?q=%7B%22search%22%3A%5B%22S.189%22%5D%7D&r=1&s=1
 
S. 453—A Bill to Amend the Consumer Financial Protection Act of 2010 to Subject the Bureau of Consumer Financial Protection to the Regular Appropriations Process
Summary: The bill would amend the Consumer Financial Protection Act of 2010 to subject the Consumer Financial Protection Bureau to the regular appropriations process.
Introduced:  Feb. 12, 2019
Status:  Read twice and referred to the Committee on Banking, Housing, and Urban Affairs on Feb. 12, 2019.
Sponsor: Sen. David Perdue (R-GA); 18 cosponsors. 3% chance of enactment (according to govtrack). 
Details: https://www.congress.gov/bill/116th-congress/senate-bill/453
 
S. 3108— Consumer Transaction Account Protection Act of 2019
Summary: This bill would specify that consumer transaction account deposits of an insured depository institution shall not be considered to be funds obtained through a deposit broker.
Introduced:  December 19, 2020
Status: The bill was referred to the Committee on Banking, Housing, and Urban Affairs on December 19, 2019.
Sponsor: Sen. Doug Jones (D-AL); 2 co-sponsors. 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/senate-bill/3108?q=%7B%22search%22%3A%5B%22brokered+deposits%22%5D%7D&s=4&r=2
 
S. 3962— Asset Growth Restriction Act of 2020
Summary: The bill would strike the current legal framework for brokered deposits and replace it with an authorization for the FDIC to limit the asset growth of financially troubled banks by regulation, rule, or order.
Introduced:  June 15, 2020
Status: The bill was referred to the Committee on Banking, Housing, and Urban Affairs on June 15, 2020.
Sponsor: Sen. Jerry Moran (R-KS); 0 co-sponsors. 1% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/senate-bill/3962?s=7&r=9
 
S. 4159 — E-SIGN Modernization Act of 2020
Summary: The bill would remove the requirement that consumers “ reasonably demonstrate” that they can access the disclosures that are the subject of the consent, through a website or e-mail, for example, after they’ve specifically asked to go paperless.
Introduced:  July 2, 2020
Status: The bill was marked-up and approved by the Commerce Committee on September 16, 2020.
Sponsor: Sen. John Thune (R-SD); 3 co-sponsors. 15% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/senate-bill/3962?s=7&r=9

​​​​​​​​​​​​is issued by the Innovative Payments Association twenty times a year as a service to members.
Editors: Brian Tate, President and CEO, IPA; Ben Jackson, COO, IPA;  Grant Hannah, Director of Government Relations, IPA; Eli Rosenberg, Partner, Baird Holm LLP; and Gray Derrick, Partner, Baird Holm LLP.
Please address comments and suggestions to: gr@ipa.org.

​IPA Webinar: Understanding the New Paradigm for Regulators and Industry
 
The Conference of State Banking Supervisors is moving forward with several initiatives to support streamlining licensing, responding to findings in the FinTech Advisory Recommendations (02/2019) and networked supervision. 
 
These changes are moving quickly in several areas and will affect state licensed entities in a number of areas from obtaining a license, participating in an exam and consumer complaints.
 
The Money Services Business Association (MSBA) is a key partner in the initiatives, and we will provide an update on what the Industry can expect.
 
1. CSBS Uniform Money Transmission Modernization Act 
 
- How did we get here?
- Participants
- Status 
- Next Steps
 
2. State Examination System (SES) 
 
- Another piece of the puzzle
- One Company – One Exam 
 
3. Consumer Complaints 
 
4. NMLS – Modernization
 
Please join us on September 23 at 3 PM ET! Registration and additional information can be found here.

​IPA Fraud Week (Sept. 28 through Oct. 2)
 
One side effect of the pandemic has been an increase in cybercrime, as criminals try to take advantage of the disruption. The IPA will be holding its first ever Fraud Week from Sept 28 through Oct. 2. We will have experts from member companies, the FBI, and the Department of Justice presenting on how to prevent and mitigate cyber-attacks on payments companies. We will explore topics from the kinds of fraud attacks to how to work with law enforcement to dealing with Paycheck Protection Program fraud. Join us for the full week or only register for the sessions that interest you. The choice is yours! IPA Members: Please login to receive your member rate. 
 
Monday (9/28) 3 p.m. EST -- Fraud 101 with Steve Lenderman

During this session, we will review fraud types, schemes, scams, the actors that perpetrate these frauds and how consumers and businesses can protect themselves from becoming victims of fraud. We will begin with a review of fraud, past, present and future. The session will analyze fraud across several financial sectors, the tools and technology needed to orchestrate the fraud, and what you can do to counter it. The goal of this session is to provide you and your business a fraud knowledge base. If you know what fraud is, the you can detect and protect!
 
Tuesday (9/29) 3 p.m. EST -- Combating COVID19 Fraud from Paychecks to Vaccines

The pandemic has led to an increase in cyber-attacks of all kinds. This session will cover cyber-enabled fraud targeting various forms of assistance in the pandemic, including the use of stolen personally identifiable information purchased on the dark web to apply for Paycheck Protection Program loans and unemployment benefits, some of which is monetized on prepaid cards. It also will include tips on how to work with law enforcement in the wake of an attack.
The problem is not just limited to the financial services industry. To show how the problem has expanded, Kitchens will also cover nation-state cyber activity targeting coronavirus research.
 
Wednesday (9/30) 3 p.m. EST -- Money Laundering, Identity theft, And Gov't Benefits Fraud with Mandy Cooper and Kenta Mount of Central Payments
 
In this session, Central Payments will present case studies related to the following kinds of attacks:

• Money Laundering
• Identity Theft
• Government Benefits Fraud

 
They will explore the different forms these attacks can take and explain what kind of monitoring can be put in place to identify when these attacks are happening. 
 
Thursday (10/1) 3 p.m. EST -- Fighting Fraud with the FBI Internet Crimes Complaint Center with Caroline Adams of the FBI

This session will cover three ways the FBI can help the industry fight fraud. First, it will introduce the FBI's Internet Crime Complaint Center and how it can help companies fight fraud.  Next, it will give an overview of trending scams that the Bureau is seeing through the Center.  Finally, it will explain the Financial Fraud Kill Chain, which can help victims recover funds and provide example of successes they’ve had with banking partners.
 
Friday (10/2) 3 p.m. EST -- Payroll Protection Program, Paying People & Fraudsters

When the Payroll Protection Program was launched on April 3, 2020 Congress designated $349 Billion in relief to businesses to keep payrolls going and the US economy. The program received a tremendous amount of applications. Unfortunately, not all of these loan applications were submitted with good intentions. As usual, fraudsters quickly figured out how to turn something that was designed to help people into a profitable fraud enterprise. This presentation will review the basics of the PPP, the gaps that allowed fraudsters in, and how they committed several fraud schemes. 
 
Register here!
 
IPA Webinar: Potential Threats to FinTech in 2021
 
Next year (2021) is shaping up to be a year where policymakers make earnest attempts to learn more about the rapidly evolving payment sector. While 2020 is not over yet, it will likely be remembered as a year for the history books. With the emergence of COVID-19, policymakers focused on responding to the public health crisis and resulting economic impact by stabilizing the economy with direct federal financial support via a variety of avenues – including electronic payments. The emergence of electronic payments during the national crisis has fundamentally shifted the policy landscape for the entire banking ecosystem.  
 
Join us on October 14th, as part of the IPA’s Fall Semester series of webinars, we’ll explore Potential Threats to Fintech in 2021. We’ll also breakdown different product segments like digital wallets, cryptocurrency, POS lending, wage advance, and others and highlight the potential impact the various electoral outcomes could have on the payments community. We hope you’ll join us!
 
Register here!
 
Interested in the Canadian Market? The CPPO Virtual Symposium is Happening Oct. 14-15
 
The fourth annual CPPO Symposium is the premier event for the prepaid technology industry, fueling the transformation to digital banking in Canada. Attended by leaders in fintech, banking, payments and government, the Symposium is ideal for learning about the $5 billion Canadian prepaid technology industry. It will include sessions covering the prepaid regulatory environment, global financial health, innovative fintech partnerships and more!
 
The CPPO Symposium is going virtual this year, October 14-15, 2020, from 11:00 a.m. to 3:00 p.m. Eastern Time. Register today!

CONSUMER FINANCIAL PROTECTION BUREAU (CFPB)
Consumer Financial Protection Bureau Announces Advisory Committee Members
 
On September 16, the Consumer Financial Protection Bureau announced the appointment of members to the Consumer Advisory Board (CAB), Community Bank Advisory Council (CBAC), Credit Union Advisory Council (CUAC), and Academic Research Council (ARC). These experts advise Bureau leadership on a broad range of consumer financial issues and emerging market trends.
 
In spring 2019, Director Kraninger announced a series of enhancements to the Bureau’s advisory committee charters including: expanding the focus of the meetings to cover broad policy matters; increasing the frequency of in-person meetings from two times a year to three times a year for the CAB, CBAC, and CUAC; elevating the ARC to a Director-level advisory committee and increasing its meeting frequency; and increasing term lengths from one year to two years, among other enhancements.
 
The CAB is mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act to advise and consult with the Bureau’s Director on a variety of consumer financial issues. The Bureau also created three additional discretionary councils: the CBAC, CUAC, and ARC. The CBAC and CUAC advise and consult with the Bureau on consumer financial issues related to community banks and credit unions. The ARC advises the Bureau on its strategic research planning process and research agenda and provides feedback on research methodologies, data collection strategies, and methods of analysis, including methodologies and strategies for quantifying the costs and benefits of regulatory actions.
 
The following members will serve on each of their respective committees:
 
Consumer Advisory Board (CAB)

• Chair of the CAB - Eric Kaplan, Director – Housing Finance Program, Milken Institute (Washington, DC)
• Joaquin Altoro, CEO, Wisconsin Housing & Economic Development Authority (Madison, WI)
• Nikitra Bailey, EVP, Center for Responsible Lending (Durham, NC)
• Lorray Brown, Attorney/Consumer Law Attorney, Co-Director, Michigan Poverty Law Program (Ypsilanti, MI)
• Nadine Cohen, Managing Attorney, Greater Boston Legal Services (Boston, MA)
• David Ehrich, Executive Director, AIR – Alliance for Innovation Regulation (Washington, DC)
• Mae Watson Grote, Founder and CEO, The Financial Clinic (Brooklyn, NY)
• Tim Lampkin, CEO, Higher Purpose Co. (Clarksdale, MS)
• Leigh Phillips, President and CEO, EARN DBA SaverLife (San Francisco, CA)
• Jean Setzfand, Senior Vice President, AARP (Washington, DC)
• Rebecca Steele, President/CEO, National Foundation for Credit Counseling (Washington, DC)
• Tim Welsh, Vice Chairman Consumer and Business Banking, U.S. Bank (Minneapolis, MN)

 
Continue reading here. 
 
FEDERAL DEPOSIT INSURANCE CORPORATIONS (FDIC)
FDIC Approves Plan to Restore Deposit Insurance Fund Without Raising Fees
On September 15, the Federal Deposit Insurance Corporation (FDIC) approved a plan to restore the Deposit Insurance Fund (DIF) without raising fees on banks. Extraordinary growth in insured deposits during the first and second quarters of 2020 caused the DIF reserve ratio to decline below the statutory minimum of 1.35 percent. 
 
As of June 30, 2020, the reserve ratio had fallen below the statutory minimum and stood at 1.30 percent, 9 basis points below the reserve ratio as of March 31, 2020, and 11 basis points below its recent peak of 1.41 percent as of December 31, 2019. Prior to 2020, the DIF reserve ratio had not decreased since the fourth quarter of 2009.
 
Specifically, under the restoration plan approved today, the FDIC will: 
 

• Monitor deposit balance trends, potential losses, and other factors that affect the reserve ratio,
• Maintain the current schedule of assessment rates for all IDIs,
• At least semiannually, update its analysis and projections for the fund and, if necessary, recommend any modifications to the Plan, such as increasing assessment rates.

 
FDIC Chairman Jelena McWilliams added at a FDIC board meeting today that the FDIC predicts, “the reserve ratio would return to a level above 1.35 percent without any increase in the deposit insurance assessment rate schedule.” 
 
Additional information can be found here. 
​
OFFICE OF THE COMPTROLLER OF THE CURRENCY (OCC)
Senate Democrats Send Letter to OCC on "True Lender" Regulation
On September 16, Senator Chris Van Hollen (D-MD), a member of the Senate Banking Committee, and Senator Sherrod Brown (D-OH), the Ranking Member of the Banking Committee, led six Senate colleagues in expressing opposition to the “True Lender” Rule proposed by the Office of the Comptroller of the Currency (OCC). 
 
In their letter to Acting Comptroller of the Currency Brian Brooks, the Senators say that the proposed rule would serve as a boon to predatory lenders across the nation, harming vulnerable consumers who will face skyrocketing interest rates during an already volatile financial time. They additionally express concern that the proposed rule, instead of closely scrutinizing the relationship and respective economic interests of the non-bank and the bank, looks only at whether technical formalities have been met—namely, whether, as of the date of the origination, the bank is named as the lender in the loan agreement or funds the loan. Further, they urge the Acting Comptroller to withdraw the rule.
 
The full letter can be accessed here.

FINANCIAL CRIMES ENFORCEMENT NETWORK (FinCEN)
FinCEN Seeks Comments on Enhancing the Effectiveness of Anti-Money Laundering Programs
On September 16, the Financial Crimes Enforcement Network (FinCEN) issued an Advance Notice of Proposed Rulemaking (ANPRM) seeking comment on a range of questions pertaining to potential regulatory amendments under the Bank Secrecy Act (BSA). According to FinCEN, the proposals under consideration are intended to provide financial institutions greater flexibility in the allocation of resources and greater alignment of priorities across industry and government, resulting in the enhanced effectiveness and efficiency of anti-money laundering (AML) programs.
 
Specifically, the ANPRM seeks comment on incorporating an “effective and reasonably designed” AML program component to empower financial institutions to allocate resources more effectively. This component also would seek to implement a common understanding between supervisory agencies and financial institutions regarding the necessary AML program elements and would seek to impose minimal additional obligations on AML programs that already comply under the existing supervisory framework.
 
Additional information can be found here and the ANPRM can be found here.

​None. 

Congressional Research Service Releases and Government Accountability Office Report on Economic Impact Payments (EIPs)
 
On September 21, the Government Accountability Office (GAO) released a report entitled, “COVID-19: Federal Efforts Could Be Strengthened by Timely and Concerted Actions.” The report covers federal actions to support public health, individuals, and the economy during the COVID-19 pandemic and provides recommendations on how to fix shortcomings.
 
Beginning on page 45, the report specifically looks at Economic Impact Payments (EIP). Some key highlights include:
 

• There could be 8.7 million or more individuals who are eligible but have not received their EIP.
• Treasury has not updated its April estimate of those who have yet to receive their EIP to account for actual numbers of filers, recipients of federal benefits who received their EIP, those who used the Non-Filers tool, or other new analyses or data.
• As of July 31, 2020, 87 percent of the 3.6 million prepaid cards that had been mailed to payees had been activated. 
• An additional 204,267 or 5.6 percent of the mailed cards had been reported as lost, stolen, or destroyed, and therefore a card was reissued.
• Treasury and IRS officials also acknowledged that they could have done more to alert recipients about when to expect the cards and how to activate them.
• The plain white envelopes in which prepaid cards were sent were intended to provide a degree of security by helping to prevent theft of the cards. However, some recipients may have thought that the envelope was junk mail or that the debit card was a scam. According to Treasury officials, as they became aware of discarded cards, they worked with the card issuer to waive the fee for the first reissuance of any EIP card and reverse any initial reissuance fee that was charged to a recipient
• GAO recommendations: 
  • The Secretary of the Treasury, in coordination with the Commissioner of Internal Revenue, should update and refine the estimate of eligible recipients who have yet to file for an economic impact payment (EIP) to help target outreach and communications efforts.
  • The Secretary of the Treasury, in coordination with the Commissioner of Internal Revenue, should make estimates of eligible recipients who have yet to file for an EIP, and other relevant information, available to outreach partners to raise awareness about how and when to file for EIP.

 
A copy of the report can be found here. 
 
Additionally, the Congressional Research Service (CRS) has released an updated report on the delivery of EIPs. Highlights from the report include:
 

• The IRS began delivering the first round of EIPs 15 days after enactment of the CARES Act. As of May 31, the IRS had issued 160.4 million payments worth $269 billion; 120 million payments (or 75%) were delivered via direct deposit, 35 million (or 22%) as paper checks, and 3.7 million as prepaid debit cards. When the EIP program began, the Ways and Means Committee estimated that between 150 million and 170 million taxpayers would receive payments, and that the IRS would need to obtain information from 90 million to 110 million taxpayers to issue payments to them. 
• Several glitches have marred the delivery of EIPs. Prepaid debit cards have been sent to persons not expecting them who discarded the plain, white envelope containing them, thinking it was junk mail. An estimated 365,000 persons have not received payments for dependent children, even though they had provided the IRS with the required information; the IRS has announced that it began distributing those payments in early August. And many individuals have had difficulty getting their questions about missing or incorrect payments answered by the IRS.

 
A copy of the report can be accessed here.
 
Federal Reserve to Hold Webinar on Community Reinvestment Act (CRA)
The Federal Reserve will hold a webinar to provide information about the Federal Reserve Board’s recently announced Advance Notice of Proposed Rulemaking (ANPR) for the Community Reinvestment Act (CRA) on September 23 at 3 PM ET. The CRA is a seminal piece of legislation enacted to address systemic inequities in access to credit as part of a reinforcing set of laws to expand financial inclusion and combat redlining. The CRA ensures that federally insured banks and institutions meet the credit needs of the communities in which they are chartered and remains as important as ever in today’s circumstances.

During this session, speakers will discuss how the Federal Reserve Board’s ANPR seeks to strengthen, clarify, and tailor the CRA regulations to reflect the current banking landscape and better meet the core purpose of the CRA. In addition to providing an overview of the ANPR and highlighting its key features, speakers will also identify how individuals and organizations can comment on the ANPR.

A recorded archive of the session will be made available on the Ask the Fed® site shortly after the call. Registration is open now at www.askthefed.org. You can email your questions in advance of the session at questions@askthefed.org. Questions received in advance will receive priority.

CA lawsuits challenging OCC and FDIC “Madden fix” rules to be heard by same judge
The two lawsuits filed in federal district court in California by state attorneys general challenging the OCC and FDIC “Madden fix” final rules will both be heard by Judge Jeffrey S. White. Judge White was appointed to the federal bench in 2002 by President George W. Bush.
When the lawsuits were filed, the lawsuit against the OCC was assigned to Judge White, and the lawsuit against the FDIC was assigned to a different judge.  The California AG, one of the plaintiff AGs in both lawsuits, filed an administrative motion with Judge White to consider whether the two cases should be considered “related” under civil local rules.
Continue reading here. 

​New Federal Laws
 
None.
 
Pending Federal Bills
 
H.R. 189--Financial Institution Customer Protection Act of 2019
 
Summary: This bill specifies that a federal banking agency cannot request or order a financial institution to close a customer account unless the agency has a valid reason for doing so, and that reason cannot be only reputational risk.
 
Introduced:  Jan. 3, 2019
 
Status: The bill was referred to the House Committee on Financial Services on Jan. 3, 2019.
 
Sponsor: Rep. Blaine Luetkemeyer (R-MO); 0 co-sponsors. 4% chance of enactment (according to govtrack).
 
Details: https://www.congress.gov/bill/116th-congress/house-bill/189/all-actions?q=%7B%22search%22%3A%5B%22hr+189%22%5D%7D&s=2&r=1
 
H.R. 758--Cooperate with Law Enforcement Agencies and Watch Act of 2019
 
Summary: The bill would protect institutions from regulatory action for keeping accounts open at the request of law enforcement.
 
Introduced:  Jan. 24, 2019
 
Status: The bill was received in the Senate, read twice, and referred to the Committee on Banking, Housing, and Urban Affairs on March 12, 2019.
 
Sponsor: Rep. J. French Hill (R-AR); 2 co-sponsors. 4% chance of enactment (according to govtrack).
 
Details: https://www.congress.gov/bill/116th-congress/house-bill/758/cosponsors?q=%7B%22search%22%3A%5B%22hr+758%22%5D%7D&r=1&s=1
 
H.R. 907—To Clarify Exclusions from the Definition of a Deposit Broker
 
Summary: The bill would amend the Federal Deposit Insurance Act (“FDIA”) to clarify the exemptions from the definition of a “deposit broker.” Specifically, the bill would amend FDIA Section 29(g)(2)(I) to provide that a deposit broker does not include an agent or nominee (i) whose primary business purpose is not the placement of deposits with an insured financial institution; or (ii) who is an exclusive agent of an insurance company or insured depository institution affiliated with an insurance company, provided that the agent or nominee is, among other things, contractually prohibited from placing funds with any other unaffiliated depository institution.
 
Introduced:  Jan. 30, 2019
 
Status: The bill was referred to the House Committee on Financial Services on Jan. 30, 2019.
 
Sponsor: Rep. Darin LaHood (R-IL); 2 co-sponsors. 4% chance of enactment (according to govtrack).
 
Details: https://www.congress.gov/bill/116th-congress/house-bill/907/text?r=55&s=1
 
H.R. 1423—Forced Arbitration Injustice Repeal (FAIR) Act
 
Summary: The bill would prohibit forced arbitration agreements and any agreements that would preclude class action lawsuits. 
 
Introduced:  Feb. 28, 2019
 
Status:         Received in the Senate and Read twice and referred to the Committee on the Judiciary on September 24, 2019.
 
Sponsor: Rep. Johnson, Henry C. “Hank,” Jr. (D-GA); 222 cosponsors. 4% chance of enactment (according to govtrack). 
 
Details: https://www.congress.gov/bill/116th-congress/house-bill/1423
 
H.R. 2514—Counter Act of 2019
 
Summary: This bill would make changes to the Bank Secrecy Act and anti-money laundering laws. It would require the financial regulators and Financial Crimes Enforcement Network to each appoint a civil liberties and privacy officer who would need to consult on any new regulations. It would create a public-private information sharing program between FinCEN and the financial services industry, and it would require AML training for examiners. 
 
Introduced: May 3, 2019
 
Status: The bill passed the House of Representatives on October 28, 2019 and was received in the Senate and referred to the Senate Banking Committee on October 29, 2019.
 
Sponsor: Rep. Emanuel Cleaver (D-MO); 2 co-sponsors, 4% chance of enactment (according to govtrack).
 
Details: https://www.congress.gov/bill/116th-congress/house-bill/2514?q=%7B%22search%22%3A%5B%22hr2514%22%5D%7D&r=1&s=2
 
H.R. 2630—Cash Always Should be Honored (CASH) Act
 
Summary: This bill would make it unlawful for any physical retail establishment to refuse to accept cash as payment.
 
Introduced:  May 9, 2019
 
Status: The bill was referred to the House Committee on Energy and Commerce on May 9, 2019.
 
Sponsor: Rep. David Cicilline (D-RI); 10 co-sponsors. 4% chance of enactment (according to govtrack).
 
Details: https://www.congress.gov/bill/116th-congress/house-bill/2630
 
H.R. 4501— Consumer Transaction Account Protection Act of 2019
 
Summary: This bill would specify that consumer transaction account deposits of an insured depository institution shall not be considered to be funds obtained through a deposit broker.
 
Introduced:  September 26, 2019
 
Status: The bill was referred to the House Committee on Financial Services on September 26, 2019.
 
Sponsor: Rep. Roger Williams (R-TX); 1 co-sponsor. 4% chance of enactment (according to govtrack).
 
Details: https://www.congress.gov/bill/116th-congress/house-bill/4501?r=11&s=1
 
H.R. 4767—Financial Services Innovation Act of 2019
 
Summary: The bill requires federal regulators to create Financial Services Innovation Offices (FSIOs) within their agencies to foster innovation in financial services. Companies would also be able to apply for an “enforceable compliance agreement” with the FSIOs that, if accepted, will allow them to provide an innovative product or service under an alternative compliance plan.
 
Introduced:  Oct. 21, 2019
 
Status: The bill was referred to the House Financial Services Committee and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. On Nov. 11, 2019 it was referred to the Subcommittee on Commodity Exchanges, Energy, and Credit of the Committee on Agriculture.
 
Sponsor: Rep. Patrick McHenry (R-NC); 1 co-sponsor; 4% chance of enactment (according to govtrack).
 
Details: https://www.congress.gov/bill/116th-congress/house-bill/4767?q=%7B%22search%22%3A%5B%224767%22%5D%7D&s=1&r=1
 
H.R. 6116-- Consumer Financial Protection Commission Act
 
Summary: The bill would eliminate signatures for swipe, dip, or tap point-of-sale transactions.
 
Introduced:  March 5, 2020
 
Status: The bill was referred to the House Financial Services Committee.
 
Sponsor: Rep. Blaine Luetkemeyer (R-MO); 25 co-sponsors; 4% chance of enactment (according to govtrack).
 
Details: https://www.congress.gov/bill/116th-congress/house-bill/6116/cosponsors?r=4&s=1&searchResultViewType=expanded&KWICView=false
 
H.R. 6241-- Touchless Transactions Act of 2020
 
Summary: The bill would convert the leadership structure of the CFPB from a sole director to a commission. The commission would be made up of 5 members who are appointed by the president and approved by the Senate to serve 5-year terms. No more than 3 members of the commission would be allowed to be from the same political party. The name of the Bureau would also be changed to the Consumer Financial Protection Commission. 
 
Introduced:  March 12, 2020
 
Status: The bill was referred to the House Financial Services Committee.
 
Sponsor: Rep. French Hill (R-AR); 10 co-sponsors; 4% chance of enactment (according to govtrack).
 
S. 142—The American Data Dissemination Act
 
Summary: The bill would impose privacy requirements on providers of internet services similar to the requirements imposed on federal agencies under the Privacy Act of 1974.
 
Introduced: Jan. 16. 2019
 
Status: The bill was referred to the Senate Commerce, Science, and Transportation Committee on Jan. 16, 2019.
 
Sponsor: Sen. Marco Rubio (R-FL), 0 co-sponsors, 4% chance of enactment (according to govtrack).
 
Details: https://www.congress.gov/bill/116th-congress/senate-bill/142/text?q=%7B%22search%22%3A%5B%22S.142%22%5D%7D&r=1&s=3
 
S. 149—Stop Senior Scams Act
 
Summary:  The bill would establish an advisory council made up of federal regulators and industry representatives from, among others, gift card and prepaid card companies, to collect and review information in the development of model materials to provide to retailers, financial services companies, and wire-transfer companies to be used to educate employees on how to identify and prevent scams affecting seniors.
 
Introduced: Jan. 16, 2019
 
Status: Passed the Senate on June 16, 2020 by unanimous consent and was sent to the House of Representatives for further consideration. 
 
Sponsor:  Sen. Robert Casey (D-PA); 2 co-sponsors, 83% chance of enactment (according to govtrack).
 
Details: https://www.congress.gov/bill/116th-congress/senate-bill/149/text?q=%7B%22search%22%3A%5B%22S.149%22%5D%7D&r=1&s=2
 
S. 189—The Social Media Privacy Protection and Consumer Rights Act of 2019
 
Summary: This bill requires online platform operators to inform a user, prior to a user creating an account or otherwise using the platform, that the user’s personal data produced during online behavior will be collected and used by the operator and third parties.
 
Introduced: Jan. 17, 2019
 
Status: Read twice and referred to the Committee on Commerce, Science, and Transportation on Jan. 17, 2019
 
Sponsor:  Sen. Amy Klobuchar (D-MN); 3 co-sponsors, 4% chance of enactment (according to govtrack).
 
Details: https://www.congress.gov/bill/116th-congress/senate-bill/189/text?q=%7B%22search%22%3A%5B%22S.189%22%5D%7D&r=1&s=1
 
S. 453—A Bill to Amend the Consumer Financial Protection Act of 2010 to Subject the Bureau of Consumer Financial Protection to the Regular Appropriations Process
 
Summary: The bill would amend the Consumer Financial Protection Act of 2010 to subject the Consumer Financial Protection Bureau to the regular appropriations process.
 
Introduced:  Feb. 12, 2019
 
Status:         Read twice and referred to the Committee on Banking, Housing, and Urban Affairs on Feb. 12, 2019.
 
Sponsor: Sen. David Perdue (R-GA); 18 cosponsors. 4% chance of enactment (according to govtrack). 
 
Details:        https://www.congress.gov/bill/116th-congress/senate-bill/453
 
S. 3108— Consumer Transaction Account Protection Act of 2019
 
Summary: This bill would specify that consumer transaction account deposits of an insured depository institution shall not be considered to be funds obtained through a deposit broker.
 
Introduced:  December 19, 2020
 
Status: The bill was referred to the Committee on Banking, Housing, and Urban Affairs on December 19, 2019.
 
Sponsor: Sen. Doug Jones (D-AL); 2 co-sponsors. 4% chance of enactment (according to govtrack).
 
Details: https://www.congress.gov/bill/116th-congress/senate-bill/3108?q=%7B%22search%22%3A%5B%22brokered+deposits%22%5D%7D&s=4&r=2
 
S. 3962— Asset Growth Restriction Act of 2020
 
Summary: The bill would strike the current legal framework for brokered deposits and replace it with an authorization for the FDIC to limit the asset growth of financially troubled banks by regulation, rule, or order.
 
Introduced:  June 15, 2020
 
Status: The bill was referred to the Committee on Banking, Housing, and Urban Affairs on June 15, 2020.
 
Sponsor: Sen. Jerry Moran (R-KS); 0 co-sponsors. 1% chance of enactment (according to govtrack).
 
Details: https://www.congress.gov/bill/116th-congress/senate-bill/3962?s=7&r=9
 
S. 4159 — E-SIGN Modernization Act of 2020
 
Summary: The bill would remove the requirement that consumers “ reasonably demonstrate” that they can access the disclosures that are the subject of the consent, through a website or e-mail, for example, after they’ve specifically asked to go paperless.
 
Introduced:  July 2, 2020
 
Status: The bill was marked-up and approved by the Commerce Committee on September 16, 2020.
 
Sponsor: Sen. John Thune (R-SD); 3 co-sponsors. 17% chance of enactment (according to govtrack).
 
Details: https://www.congress.gov/bill/116th-congress/senate-bill/3962?s=7&r=9
 

​​​​​​​​​​​is issued by the Innovative Payments Association twenty times a year as a service to members.
Editors: Brian Tate, President and CEO, IPA; Ben Jackson, COO, IPA;  Grant Hannah, Director of Government Relations, IPA; Eli Rosenberg, Partner, Baird Holm LLP; and Gray Derrick, Partner, Baird Holm LLP.
Please address comments and suggestions to: gr@ipa.org.

 
Customers are the one thing that every successful business needs, and customer retention is easier than finding new ones. While this seems obvious, the pandemic has threatened the customer base for financial services. In this Webinar, SpringFour will present results from its research into how the pandemic has affected household finances of low and moderate income people. Their research reveals the needs of this segment of customers. We will talk about how companies can retain their customers and maintain their bottom lines by meeting those needs both directly and indirectly.
 
Please join us on September 16 at 3 PM ET. Registration and additional information can be found here.
 
IPA Webinar: Understanding the New Paradigm for Regulators and Industry
 
The Conference of State Banking Supervisors is moving forward with several initiatives to support streamlining licensing, responding to findings in the FinTech Advisory Recommendations (02/2019) and networked supervision. 
 
These changes are moving quickly in several areas and will affect state licensed entities in a number of areas from obtaining a license, participating in an exam and consumer complaints.
 
The Money Services Business Association (MSBA) is a key partner in the initiatives and we will provide an update on what the Industry can expect.
 
1. CSBS Uniform Money Transmission Modernization Act 
- How did we get here?
- Participants
- Status 
- Next Steps
 
2. State Examination System (SES) 
- Another piece of the puzzle
- One Company – One Exam 
​
3. Consumer Complaints 
 
4. NMLS – Modernization
 
Please join us on September 23 at 3 PM ET! Registration and additional information can be found here.

CONSUMER FINANCIAL PROTECTION BUREAU (CFPB)
CFPB Releases Guide For Intermediaries To Assist Non-Filers To Access Their Economic Impact Payments
 
On August 27, the Consumer Financial Protection Bureau released a guide for social service providers, community-based organizations, nonprofits, and other intermediaries who assist individuals in accessing their Economic Impact Payments (EIPs). The guide, Helping Consumers Claim the Economic Impact Payment: A guide for intermediary organizations, provides step-by-step instructions for frontline staff on how to:
 

• Discuss the EIP with their clients;
• Determine if clients need to take action; and
• Support clients with what to expect and how to troubleshoot common issues.

 
Additionally, in the press release announcing the guide, the Bureau notes that, in order to receive their EIP this year, the IRS requests that eligible individuals and families who have no tax filing obligation file a simple return through the non-filer portal  on the IRS.gov website by October 15, 2020. The release further notes that individuals who miss this deadline can also file a 2020 tax return next year to receive the payment in 2021.
 
The Bureau’s press release and additional information about the guide can be accessed here.
 
Electronic Disclosure of Adverse Action Virtual Tech Sprint
 
On October 5-9, 2020, the Consumer Financial Protection Bureau will host its Adverse Action virtual Tech Sprint.
The Bureau seeks sprint participants to develop innovative electronic ways to notify consumers of, and inform them about, adverse credit actions. Innovations may concern any aspect, or potential aspect, of adverse action communication, including its development or use. Participants may—but do not have to—address adverse actions based on the use of machine learning algorithms or data not found in traditional credit reports. The application deadline is Friday, September 11, 2020, at 11:59 p.m. EDT.
Learn more here.

IPA CFPB Trial Disclosure Program Application
The IPA is preparing an application for a waiver template under the CFPB’s Trial Disclosure Program (TDP) on behalf of the IPA members. This waiver template seeks to allow approved applicants to offer prepaid accounts in accordance with the CFPB's Prepaid Account Rule ("Prepaid Rule") without the need to provide the long form disclosure required under the Rule. 
 
If approved, interested IPA members would still be required to submit individual applications to the CFPB for permission to offer prepaid accounts without providing the long form disclosure but would be able to use the waiver template as a guide and to have a better understanding of what the CFPB would be looking for in successful applications. 
 
The IPA’s draft application can be accessed here. If you have any questions or concerns, please let Brian Tate (btate@ipa.org), Eli Rosenberg (erosenberg@bairdholm.com), or Grant Hannah (ghannah@ipa.org) know. 

OFFICE OF THE COMPTROLLER OF THE CURRENCY (OCC)
OCC Announces Plans to Begin Accepting Payments Charter Applications
Last week, Politico reported that the Office of the Comptroller of the Currency (OCC) is moving to begin offering a new Special Purpose National Bank Charter for Payment Companies (Payments Charter). OCC Acting Comptroller Brian Brooks told Politico that the OCC could be ready in short order to start processing applications for charters from payments companies. Acting Comptroller Brooks is also quoted as saying, “We’ve satisfied ourselves that we don’t need a new regulation or a new statute on it.”
​
In reaction to this news, the Conference of State Bank Supervisors, the national trade association of state banking regulators, issued a press release stating their opposition to this step by the OCC. They also compare the Payments Charter to the OCC’s Fintech Charter, which the OCC has been blocked from moving forward with in federal court. The full press release can be found here. 

House Financial Services Committee Chairwoman Waters Announces September Hearing Schedule
 
On August 28, Congresswoman Maxine Waters (D-CA), Chairwoman of the House Committee on Financial Services, announced the hearing schedule for the month of September. The IPA will be closely following these hearings: 

• September 22 at 10:30 AM – The full Committee will convene for a hybrid hearing entitled, “Oversight of the Treasury Department’s and Federal Reserve’s Pandemic Response.” 
• September 29 at 12:00 PM – The Task Force on Financial Technology will convene for a virtual hearing entitled, “License to Bank: Examining the Legal Framework Governing Who Can Lend and Process Payments in the Fintech Age.”

The complete list of September hearings can be found here

Senate Banking Committee Chairman Crapo Sends Letter to OCC on Crypto
 
On September 2, Senate Banking Committee Chairman Mike Crapo (R-ID) sent a letter to the Office of the Comptroller of the Currency (OCC) regarding their Advanced Notice of Proposed Rulemaking (ANPR) on the digital activities of banks and federal savings associations. In brief, Chairman Crapo’s letter encourages the OCC to develop rules of the road for the use of cryptocurrencies and/or distributed ledger technology (DLT) in payments for national banks. Chairman Crapo additionally requests an update on the OCC’s findings from the ANPR and information regarding next steps the OCC intends to take with this technology.
 
A copy of the letter can be accessed here.
 
Rep. Trey Hollingsworth (R-IN) Sends Letter to the FDIC on Brokered Deposits
 
On August 21, Rep. Trey Hollingsworth (R-IN), a member of the House Financial Services Committee, sent a letter to the FDIC regarding their Notice of Proposed Rulemaking on Brokered Deposits. In the letter, Rep. Hollingsworth expresses concern with the definition of “facilitating the placement of deposits” in the proposed rule and its potential impacts. He further outlines his belief that, as long as banks establish, own, and control the depositor relationship, the institutions should not be penalized from outsourcing ancillary activities and services provided that the financial institution retains the direct relationship with the depositor.  
 
A copy of the letter can be accessed here.
 
House Energy and Commerce Committee to Markup Fraud Bills
 
On September 9, the House Energy and Commerce Committee is expected to markup two pieces of legislation that deal with fraud. Please find additional information on the bills below. 
 
H.R. 2610 - Stop Senior Scams Act
 
The Stop Senior Scams Act would establish a Senior Scams Prevention Advisory Council (“Advisory Council”) at the FTC. The Advisory Council, while considering public comment, would collect existing information and guidance on identifying and preventing scams affecting seniors and create improved model educational materials and programs. The bill would direct the FTC to make the improved materials public and encourage their use and distribution. The bill would also amend the Elder Abuse Prevention and Prosecution Act, 34 U.S.C. § 21711, to include information, findings, and recommendations from the Advisory Council in the annual report to Congress.
 
*Note: the IPA sent a letter of support when the Senate companion (S. 149) was being marked-up. 
 
H.R. 6435 – Combating Pandemic Scams Act Of 2020
 
The Combating Pandemic Scams Act of 2020 would require the FTC to inform the public about mail, telemarketing, and internet scams related to COVID-19 and disseminate information on how to report COVID-19-related scams to the appropriate agency. The FTC would also be required to establish a national database for such information.
 
Additional information as well as a livestream of markup can be found here.

IPA Election Snapshot – Post Convention Polling
 
The Democratic National Convention took place from August 17 – August 20 and the Republican National Convention took place from August 24 – August 27.  
 
Now that the conventions are over, we wanted to pass along the results of the latest polling as part of our Election Snapshot series, which can be found below.
 
Election Snapshot – 9.3.20
 
Presidential:
 
A Morning Consult poll conducted on Friday, August 28 that asked 4,035 likely voters which candidate they would pick found:
 

• Former Vice President Joe Biden leads President Trump 50% to 44% among likely voters following the Republican National Convention vs. a lead of 52% to 42% before it began. 
• President Trump cut into Biden’s lead among suburbanites and grew his support among white voters, though he worsened his standing with voters of color.
• Biden’s favorability numbers weakened while the president’s remained steady.

Major Dates on Presidential Calendar: 
 

• Sept. 29: 1st presidential debate (Cleveland, Ohio)
• Oct. 7: Vice presidential debate (Salt Lake City, Utah)
• Oct. 15: 2nd presidential debate (Miami, Fla.)
• Oct. 22: 3rd presidential debate (Nashville, Tenn.)
• Nov. 3: Election Day

 
Senate:
270toWin has compiled a map of the 2020 Senate elections using the current ratings of Sabato's Crystal Ball, The Cook Political Report, and Inside Elections to find a consensus. 
 
Accordingly, the consensus polling indicates that the Senate is a tossup right now. There are 6 seats that are rated tossups which will determine which party wins the majority in the Senate: 
 

• Colorado
• Georgia
• Iowa
• Maine
• Montana
• North Carolina

​House of Representatives:
 
270toWin has also compiled a map of the 2020 House elections using the current ratings of Sabato's Crystal Ball, The Cook Political Report, and Inside Elections to find a consensus. 
 
Accordingly, the current consensus polling indicates that the House is likely to remain in Democratic control.

None.

New Federal Laws
 
None.
 
Pending Federal Bills
 
H.R. 189--Financial Institution Customer Protection Act of 2019
Summary: This bill specifies that a federal banking agency cannot request or order a financial institution to close a customer account unless the agency has a valid reason for doing so, and that reason cannot be only reputational risk.
Introduced:  Jan. 3, 2019
Status: The bill was referred to the House Committee on Financial Services on Jan. 3, 2019.
Sponsor: Rep. Blaine Luetkemeyer (R-MO); 0 co-sponsors. 2% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/189/all-actions?q=%7B%22search%22%3A%5B%22hr+189%22%5D%7D&s=2&r=1
 
H.R. 758--Cooperate with Law Enforcement Agencies and Watch Act of 2019
Summary: The bill would protect institutions from regulatory action for keeping accounts open at the request of law enforcement.
Introduced:  Jan. 24, 2019
Status: The bill was received in the Senate, read twice, and referred to the Committee on Banking, Housing, and Urban Affairs on March 12, 2019.
Sponsor: Rep. J. French Hill (R-AR); 2 co-sponsors. 2% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/758/cosponsors?q=%7B%22search%22%3A%5B%22hr+758%22%5D%7D&r=1&s=1
 
H.R. 907—To Clarify Exclusions from the Definition of a Deposit Broker
Summary: The bill would amend the Federal Deposit Insurance Act (“FDIA”) to clarify the exemptions from the definition of a “deposit broker.” Specifically, the bill would amend FDIA Section 29(g)(2)(I) to provide that a deposit broker does not include an agent or nominee (i) whose primary business purpose is not the placement of deposits with an insured financial institution; or (ii) who is an exclusive agent of an insurance company or insured depository institution affiliated with an insurance company, provided that the agent or nominee is, among other things, contractually prohibited from placing funds with any other unaffiliated depository institution.
Introduced:  Jan. 30, 2019
Status: The bill was referred to the House Committee on Financial Services on Jan. 30, 2019.
Sponsor: Rep. Darin LaHood (R-IL); 2 co-sponsors. 2% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/house-bill/907/text?r=55&s=1
 
H.R. 1423—Forced Arbitration Injustice Repeal (FAIR) Act
Summary: The bill would prohibit forced arbitration agreements and any agreements that would preclude class action lawsuits. 
Introduced:  Feb. 28, 2019
Status:  Received in the Senate and Read twice and referred to the Committee on the Judiciary on September 24, 2019.
Sponsor: Rep. Johnson, Henry C. “Hank,” Jr. (D-GA); 222 cosponsors. 2% chance of enactment (according to govtrack). 
Details: https://www.congress.gov/bill/116th-congress/house-bill/1423
 
H.R. 2514—Counter Act of 2019
Summary: This bill would make changes to the Bank Secrecy Act and anti-money laundering laws. It would require the financial regulators and Financial Crimes Enforcement Network to each appoint a civil liberties and privacy officer who would need to consult on any new regulations. It would create a public-private information sharing program between FinCEN and the financial services industry, and it would require AML training for examiners. 
Introduced: May 3, 2019
Status: The bill passed the House of Representatives on October 28, 2019 and was received in the Senate and referred to the Senate Banking Committee on October 29, 2019.
Sponsor: Rep. Emanuel Cleaver (D-MO); 2 co-sponsors, 2% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/2514?q=%7B%22search%22%3A%5B%22hr2514%22%5D%7D&r=1&s=2
 
H.R. 2630—Cash Always Should be Honored (CASH) Act
Summary: This bill would make it unlawful for any physical retail establishment to refuse to accept cash as payment.
Introduced:  May 9, 2019
Status: The bill was referred to the House Committee on Energy and Commerce on May 9, 2019.
Sponsor: Rep. David Cicilline (D-RI); 10 co-sponsors. 2% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/house-bill/2630
 
H.R. 4501— Consumer Transaction Account Protection Act of 2019
Summary: This bill would specify that consumer transaction account deposits of an insured depository institution shall not be considered to be funds obtained through a deposit broker.
Introduced:  September 26, 2019
Status: The bill was referred to the House Committee on Financial Services on September 26, 2019.
Sponsor: Rep. Roger Williams (R-TX); 1 co-sponsor. 2% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/house-bill/4501?r=11&s=1
 
H.R. 4767—Financial Services Innovation Act of 2019
Summary: The bill requires federal regulators to create Financial Services Innovation Offices (FSIOs) within their agencies to foster innovation in financial services. Companies would also be able to apply for an “enforceable compliance agreement” with the FSIOs that, if accepted, will allow them to provide an innovative product or service under an alternative compliance plan.
Introduced:  Oct. 21, 2019
Status: The bill was referred to the House Financial Services Committee and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. On Nov. 11, 2019 it was referred to the Subcommittee on Commodity Exchanges, Energy, and Credit of the Committee on Agriculture.
Sponsor: Rep. Patrick McHenry (R-NC); 1 co-sponsor; 2% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/4767?q=%7B%22search%22%3A%5B%224767%22%5D%7D&s=1&r=1
 
H.R. 6116-- Consumer Financial Protection Commission Act
Summary: The bill would eliminate signatures for swipe, dip, or tap point-of-sale transactions.
Introduced:  March 5, 2020
Status: The bill was referred to the House Financial Services Committee.
Sponsor: Rep. Blaine Luetkemeyer (R-MO); 25 co-sponsors; 2% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/6116/cosponsors?r=4&s=1&searchResultViewType=expanded&KWICView=false
 
H.R. 6241-- Touchless Transactions Act of 2020
Summary: The bill would convert the leadership structure of the CFPB from a sole director to a commission. The commission would be made up of 5 members who are appointed by the president and approved by the Senate to serve 5-year terms. No more than 3 members of the commission would be allowed to be from the same political party. The name of the Bureau would also be changed to the Consumer Financial Protection Commission. 
Introduced:  March 12, 2020
Status: The bill was referred to the House Financial Services Committee.
Sponsor: Rep. French Hill (R-AR); 10 co-sponsors; 2% chance of enactment (according to govtrack).
 
S. 142—The American Data Dissemination Act
Summary: The bill would impose privacy requirements on providers of internet services similar to the requirements imposed on federal agencies under the Privacy Act of 1974.
Introduced: Jan. 16. 2019
Status: The bill was referred to the Senate Commerce, Science, and Transportation Committee on Jan. 16, 2019.
Sponsor: Sen. Marco Rubio (R-FL), 0 co-sponsors, 2% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/senate-bill/142/text?q=%7B%22search%22%3A%5B%22S.142%22%5D%7D&r=1&s=3
 
S. 149—Stop Senior Scams Act
Summary:  The bill would establish an advisory council made up of federal regulators and industry representatives from, among others, gift card and prepaid card companies, to collect and review information in the development of model materials to provide to retailers, financial services companies, and wire-transfer companies to be used to educate employees on how to identify and prevent scams affecting seniors.
Introduced: Jan. 16, 2019
Status: Passed the Senate on June 16, 2020 by unanimous consent and was sent to the House of Representatives for further consideration. 
Sponsor:  Sen. Robert Casey (D-PA); 2 co-sponsors, 83% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/senate-bill/149/text?q=%7B%22search%22%3A%5B%22S.149%22%5D%7D&r=1&s=2
 
S. 189—The Social Media Privacy Protection and Consumer Rights Act of 2019
Summary: This bill requires online platform operators to inform a user, prior to a user creating an account or otherwise using the platform, that the user’s personal data produced during online behavior will be collected and used by the operator and third parties.
Introduced: Jan. 17, 2019
Status: Read twice and referred to the Committee on Commerce, Science, and Transportation on Jan. 17, 2019
Sponsor:  Sen. Amy Klobuchar (D-MN); 3 co-sponsors, 2% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/senate-bill/189/text?q=%7B%22search%22%3A%5B%22S.189%22%5D%7D&r=1&s=1
 
S. 453—A Bill to Amend the Consumer Financial Protection Act of 2010 to Subject the Bureau of Consumer Financial Protection to the Regular Appropriations Process
Summary: The bill would amend the Consumer Financial Protection Act of 2010 to subject the Consumer Financial Protection Bureau to the regular appropriations process.
Introduced:  Feb. 12, 2019
Status:  Read twice and referred to the Committee on Banking, Housing, and Urban Affairs on Feb. 12, 2019.
Sponsor: Sen. David Perdue (R-GA); 18 cosponsors. 2% chance of enactment (according to govtrack). 
Details: https://www.congress.gov/bill/116th-congress/senate-bill/453
 
S. 3108— Consumer Transaction Account Protection Act of 2019
Summary: This bill would specify that consumer transaction account deposits of an insured depository institution shall not be considered to be funds obtained through a deposit broker.
Introduced:  December 19, 2020
Status: The bill was referred to the Committee on Banking, Housing, and Urban Affairs on December 19, 2019.
Sponsor: Sen. Doug Jones (D-AL); 2 co-sponsors. 2% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/senate-bill/3108?q=%7B%22search%22%3A%5B%22brokered+deposits%22%5D%7D&s=4&r=2
 
S. 3962— Asset Growth Restriction Act of 2020
Summary: The bill would strike the current legal framework for brokered deposits and replace it with an authorization for the FDIC to limit the asset growth of financially troubled banks by regulation, rule, or order.
Introduced:  June 15, 2020
Status: The bill was referred to the Committee on Banking, Housing, and Urban Affairs on June 15, 2020.
Sponsor: Sen. Jerry Moran (R-KS); 0 co-sponsors. 2% chance of enactment (according to govtrack)
Details: https://www.congress.gov/bill/116th-congress/senate-bill/3962?s=7&r=9

​​​​​​​​​​is issued by the Innovative Payments Association twenty times a year as a service to members.
Editors: Brian Tate, President and CEO, IPA; Ben Jackson, COO, IPA;  Grant Hannah, Director of Government Relations, IPA; Eli Rosenberg, Partner, Baird Holm LLP; and Gray Derrick, Partner, Baird Holm LLP.
Please address comments and suggestions to: gr@ipa.org.

IPA Podcast: ​The Future of Payments with the Acting Comptroller
In the latest episode of the IPA Payments Pod, Brian Tate, the IPA’s CEO, and our members talk with Brian Brooks, the Acting Comptroller of the Currency. 

In a wide-ranging discussion, they talk about regulating during the COVID19 pandemic and beyond. Looking to the future, they discuss fintech charters, small dollar lending, and digital dollars.

The Comptroller also brings up the social justice issues that the country has been facing. He describes how the OCC has launched a new effort “Project REACh,” to address structural issues that affect the ability of Americans to build wealth. You can learn more here. 

This is an edited version of the audio portion from the IPA’s Summer of Learning session. 
 
IPA Elevator
The IPA will host its first annual Fintech Elevator on August 26. This event will bring together IPA member companies and venture capitalists to hear pitches from startups in the Fintech space. Don’t miss out on this exciting opportunity to hear from some of the most innovative emerging companies in Fintech!
 
Participating companies include: 

• Build Financial
• Invest Sou Sou
• Frizzmo
• BundleFund
• Llena(AI)

Registration and additional information can be found here.

CONSUMER FINANCIAL PROTECTION BUREAU (CFPB)

PayPal Files Response to CFPB in Prepaid Rule Litigation
On August 21, PayPal filed its response to the Consumer Financial Protection Bureau’s (Bureau) motion for summary judgement in the ongoing litigation over the Bureau’s Prepaid Rule (Rule). In its response, PayPal refutes the Bureau’s position and reaffirms their position digital wallets are fundamentally different from GPR cards, and that the Bureau’s regulatory approach to digital wallets cannot be reconciled with the Administrative Procedure Act’s requirement of reasoned decision making or with the cost-benefit analysis requirements in the Dodd-Frank Act.  Moreover, PayPal also argues that the Bureau lacked statutory authority under EFTA, TILA, and the Dodd-Frank Act to adopt the short-form requirement and the 30-day credit linking ban. It is on these grounds that PayPal again requests that the Court vacate the Rule, declare the Rule unconstitutional as applied to PayPal, and enjoin its enforcement against PayPal. 
 
The Bureau will now have the opportunity to file a response to this filing by PayPal, which is due by September 25.

CFPB Requests Information on the Impact of the CARD Act Regulations on Small Entities and the Consumer Credit Card Market
On August 25, the CFPB released a request for information (RFI) to examine the impact of the rules that implement the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act Rules).
According to the Bureau, it is seeking public input on the CARD Act Rules’ economic impact on small entities. The Bureau is also requesting comments from the public on how the consumer credit card market is functioning as part of a Bureau review required by the CARD Act.
In reviewing the economic impact of the CARD Act Rules on small entities, the Bureau is seeking to determine whether the regulations should be continued without change or be amended or rescinded. In seeking comments on the consumer credit card market, the Bureau must conduct a review of the market every two years.
The full RFI can be found here. 

FEDERAL RESERVE BOARD OF GOVERNORS
Federal Reserve Announces Partnership with MIT on Digital Currency
In a speech at the Federal Reserve Bank of San Francisco on August 13, Federal Reserve Board Governor Lael Brainard announced that, in order to enhance the Federal Reserve's (the Fed) understanding of digital currencies, the Federal Reserve Bank of Boston is partnering with researchers at the Massachusetts Institute of Technology in a multiyear effort to build and test a hypothetical central bank digital currency (CBDC). This collaboration follows in-house experiments at the Fed and collaboration with other central banks over the last few years on CBDCs.
 
According to Governor Brainard, the objectives of research and experimentation across the Federal Reserve System are to assess the safety and efficiency of digital currency systems, to inform their understanding of private-sector arrangements, and to give them hands-on experience to understand the opportunities and limitations of possible technologies for digital forms of central bank money. These efforts are intended to ensure that the Fed fully understands the potential as well as the associated risks and possible unintended consequences that new technologies present in the payments arena.
 
Finally, Governor Brainard emphasized that a significant policy process would be required to consider the issuance of a CBDC, along with extensive deliberations and engagement with other parts of the federal government and a broad set of other stakeholders. She further stated that the Federal Reserve has not made a decision whether to undertake a policy process to consider the issuance of a CBDC, as they are taking the time and effort to understand the significant implications of digital currencies and CBDCs around the globe.
 
The text of Governor Brainard’s speech can be accessed here.
​
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)
States sue FDIC over 'rent-a-bank' partnerships
Seven states and the District of Columbia have filed a lawsuit against the FDIC over a final rule they released earlier this year on the portability of interest rates from banks to non-bank lenders.
 
In the lawsuit, the coalition argues that the FDIC’s final rule conflicts with the Federal Deposit Insurance Act, exceeds the FDIC’s statutory authority and violates the Administrative Procedure Act. Additionally, the lawsuit asserts that the FDIC failed to consider and address the negative effect that its final rule has on consumer financial protections by facilitating predatory lending schemes.
 
A copy of the suit can be found here.

Congressional Letter Sent to FDIC on Brokered Deposits NPR
On August 14, a joint comment letter from a bipartisan group of members of the House Financial Services Committee was submitted to the FDIC regarding their Notice of Proposed Rulemaking on Brokered Deposits. The letter, which was led by Reps. Roger Williams (R-TX) and Vincente Gonzalez (D-TX), expresses concern that the “facilitation of deposits” definition is overly broad and would not incentivize partnerships between banks and innovative fintech companies. In addition, the letter calls on the FDIC to simplify the primary purpose application process. 

Polling Indicates No Immediate Post-Convention Bump for Biden, Still Leads Nationally
​

Republican National Convention
 The Republican National Convention (RNC) is being held from Monday, August 24 – Thursday, August 27 in Charlotte, NC. President Trump is scheduled to deliver his acceptance speech for the Republican nomination for President of the United States remotely on Thursday, August 27. 
 
Additional information about the RNC can be found here.

California Bill Could Impose “Strict Liability” for Payment Processors
California Assembly Bill 3262 would require an electronic retail marketplace, as defined, to be held strictly liable, subject to certain exceptions, for all damages caused by defective products placed into the stream of commerce to the same extent as a retailer. The definition of "Electronic retail marketplace” includes “…an electronic place or internet website that is engaged in the business of placing or facilitating the placement of products into the stream of commerce in this state, regardless of whether the vendor, product, or the marketplace has a physical presence in the state…” 
 
Some have expressed concern that the inclusion of the phrase “facilitating the placement of products” in the definition of “electronic retail marketplace” could be read broadly to include payment processors and other third parties involved E-commerce transactions at electronic retail marketplaces.
 
The IPA will track this legislation through our monthly IPA State Legislative Tracker. If you do not already receive the State Tracker and would like to, please contact Grant Hannah.

New Federal Laws
 
None.
 
Pending Federal Bills
 
H.R. 189--Financial Institution Customer Protection Act of 2019
Summary: This bill specifies that a federal banking agency cannot request or order a financial institution to close a customer account unless the agency has a valid reason for doing so, and that reason cannot be only reputational risk.
Introduced:  Jan. 3, 2019
Status: The bill was referred to the House Committee on Financial Services on Jan. 3, 2019.
Sponsor: Rep. Blaine Luetkemeyer (R-MO); 0 co-sponsors. 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/189/all-actions?q=%7B%22search%22%3A%5B%22hr+189%22%5D%7D&s=2&r=1
 
H.R. 758--Cooperate with Law Enforcement Agencies and Watch Act of 2019
Summary: The bill would protect institutions from regulatory action for keeping accounts open at the request of law enforcement.
Introduced:  Jan. 24, 2019
Status: The bill was received in the Senate, read twice, and referred to the Committee on Banking, Housing, and Urban Affairs on March 12, 2019.
Sponsor: Rep. J. French Hill (R-AR); 2 co-sponsors. 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/758/cosponsors?q=%7B%22search%22%3A%5B%22hr+758%22%5D%7D&r=1&s=1
 
H.R. 907—To Clarify Exclusions from the Definition of a Deposit Broker
Summary: The bill would amend the Federal Deposit Insurance Act (“FDIA”) to clarify the exemptions from the definition of a “deposit broker.” Specifically, the bill would amend FDIA Section 29(g)(2)(I) to provide that a deposit broker does not include an agent or nominee (i) whose primary business purpose is not the placement of deposits with an insured financial institution; or (ii) who is an exclusive agent of an insurance company or insured depository institution affiliated with an insurance company, provided that the agent or nominee is, among other things, contractually prohibited from placing funds with any other unaffiliated depository institution.
Introduced:  Jan. 30, 2019
Status: The bill was referred to the House Committee on Financial Services on Jan. 30, 2019.
Sponsor: Rep. Darin LaHood (R-IL); 2 co-sponsors. 3% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/house-bill/907/text?r=55&s=1
 
H.R. 1423—Forced Arbitration Injustice Repeal (FAIR) Act
Summary: The bill would prohibit forced arbitration agreements and any agreements that would preclude class action lawsuits. 
Introduced:  Feb. 28, 2019
Status:  Received in the Senate and Read twice and referred to the Committee on the Judiciary on September 24, 2019.
Sponsor: Rep. Johnson, Henry C. “Hank,” Jr. (D-GA); 222 cosponsors. 3% chance of enactment (according to govtrack). 
Details: https://www.congress.gov/bill/116th-congress/house-bill/1423
 
H.R. 2514—Counter Act of 2019
Summary: This bill would make changes to the Bank Secrecy Act and anti-money laundering laws. It would require the financial regulators and Financial Crimes Enforcement Network to each appoint a civil liberties and privacy officer who would need to consult on any new regulations. It would create a public-private information sharing program between FinCEN and the financial services industry, and it would require AML training for examiners. 
Introduced: May 3, 2019
Status: The bill passed the House of Representatives on October 28, 2019 and was received in the Senate and referred to the Senate Banking Committee on October 29, 2019.
Sponsor: Rep. Emanuel Cleaver (D-MO); 2 co-sponsors, 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/2514?q=%7B%22search%22%3A%5B%22hr2514%22%5D%7D&r=1&s=2
 
H.R. 2630—Cash Always Should be Honored (CASH) Act
Summary: This bill would make it unlawful for any physical retail establishment to refuse to accept cash as payment.
Introduced:  May 9, 2019
Status: The bill was referred to the House Committee on Energy and Commerce on May 9, 2019.
Sponsor: Rep. David Cicilline (D-RI); 10 co-sponsors. 3% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/house-bill/2630
 
H.R. 4501— Consumer Transaction Account Protection Act of 2019
Summary: This bill would specify that consumer transaction account deposits of an insured depository institution shall not be considered to be funds obtained through a deposit broker.
Introduced:  September 26, 2019
Status: The bill was referred to the House Committee on Financial Services on September 26, 2019.
Sponsor: Rep. Roger Williams (R-TX); 1 co-sponsor. 3% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/house-bill/4501?r=11&s=1
 
H.R. 4767—Financial Services Innovation Act of 2019
Summary: The bill requires federal regulators to create Financial Services Innovation Offices (FSIOs) within their agencies to foster innovation in financial services. Companies would also be able to apply for an “enforceable compliance agreement” with the FSIOs that, if accepted, will allow them to provide an innovative product or service under an alternative compliance plan.
 
Introduced:  Oct. 21, 2019
Status: The bill was referred to the House Financial Services Committee and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. On Nov. 11, 2019 it was referred to the Subcommittee on Commodity Exchanges, Energy, and Credit of the Committee on Agriculture.
Sponsor: Rep. Patrick McHenry (R-NC); 1 co-sponsor; 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/4767?q=%7B%22search%22%3A%5B%224767%22%5D%7D&s=1&r=1
 
H.R. 6116-- Consumer Financial Protection Commission Act
Summary: The bill would eliminate signatures for swipe, dip, or tap point-of-sale transactions.
Introduced:  March 5, 2020
Status: The bill was referred to the House Financial Services Committee.
Sponsor: Rep. Blaine Luetkemeyer (R-MO); 25 co-sponsors; 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/6116/cosponsors?r=4&s=1&searchResultViewType=expanded&KWICView=false
 
H.R. 6241-- Touchless Transactions Act of 2020
Summary: The bill would convert the leadership structure of the CFPB from a sole director to a commission. The commission would be made up of 5 members who are appointed by the president and approved by the Senate to serve 5-year terms. No more than 3 members of the commission would be allowed to be from the same political party. The name of the Bureau would also be changed to the Consumer Financial Protection Commission. 
Introduced:  March 12, 2020
Status: The bill was referred to the House Financial Services Committee.
Sponsor: Rep. French Hill (R-AR); 10 co-sponsors; 3% chance of enactment (according to govtrack).
 
S. 142—The American Data Dissemination Act
Summary: The bill would impose privacy requirements on providers of internet services similar to the requirements imposed on federal agencies under the Privacy Act of 1974.
Introduced: Jan. 16. 2019
Status: The bill was referred to the Senate Commerce, Science, and Transportation Committee on Jan. 16, 2019.
Sponsor: Sen. Marco Rubio (R-FL), 0 co-sponsors, 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/senate-bill/142/text?q=%7B%22search%22%3A%5B%22S.142%22%5D%7D&r=1&s=3
 
S. 149—Stop Senior Scams Act
Summary:  The bill would establish an advisory council made up of federal regulators and industry representatives from, among others, gift card and prepaid card companies, to collect and review information in the development of model materials to provide to retailers, financial services companies, and wire-transfer companies to be used to educate employees on how to identify and prevent scams affecting seniors.
Introduced: Jan. 16, 2019
Status: Passed the Senate on June 16, 2020 by unanimous consent and was sent to the House of Representatives for further consideration. 
Sponsor:  Sen. Robert Casey (D-PA); 2 co-sponsors, 83% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/senate-bill/149/text?q=%7B%22search%22%3A%5B%22S.149%22%5D%7D&r=1&s=2
 
S. 189—The Social Media Privacy Protection and Consumer Rights Act of 2019
Summary: This bill requires online platform operators to inform a user, prior to a user creating an account or otherwise using the platform, that the user’s personal data produced during online behavior will be collected and used by the operator and third parties.
Introduced: Jan. 17, 2019
Status: Read twice and referred to the Committee on Commerce, Science, and Transportation on Jan. 17, 2019
Sponsor:  Sen. Amy Klobuchar (D-MN); 3 co-sponsors, 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/senate-bill/189/text?q=%7B%22search%22%3A%5B%22S.189%22%5D%7D&r=1&s=1
 
S. 453—A Bill to Amend the Consumer Financial Protection Act of 2010 to Subject the Bureau of Consumer Financial Protection to the Regular Appropriations Process 
Summary: The bill would amend the Consumer Financial Protection Act of 2010 to subject the Consumer Financial Protection Bureau to the regular appropriations process.
Introduced:  Feb. 12, 2019
Status:  Read twice and referred to the Committee on Banking, Housing, and Urban Affairs on Feb. 12, 2019.
Sponsor: Sen. David Perdue (R-GA); 18 cosponsors. 3% chance of enactment (according to govtrack). 
Details: https://www.congress.gov/bill/116th-congress/senate-bill/453
 
S. 3108— Consumer Transaction Account Protection Act of 2019
Summary: This bill would specify that consumer transaction account deposits of an insured depository institution shall not be considered to be funds obtained through a deposit broker.
Introduced:  December 19, 2020
Status: The bill was referred to the Committee on Banking, Housing, and Urban Affairs on December 19, 2019.
Sponsor: Sen. Doug Jones (D-AL); 2 co-sponsors. 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/senate-bill/3108?q=%7B%22search%22%3A%5B%22brokered+deposits%22%5D%7D&s=4&r=2
 
S. 3962— Asset Growth Restriction Act of 2020
Summary: The bill would strike the current legal framework for brokered deposits and replace it with an authorization for the FDIC to limit the asset growth of financially troubled banks by regulation, rule, or order.
Introduced:  June 15, 2020
Status: The bill was referred to the Committee on Banking, Housing, and Urban Affairs on June 15, 2020.
Sponsor: Sen. Jerry Moran (R-KS); 0 co-sponsors. 3% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/senate-bill/3962?s=7&r=9

​​​​​​​​​is issued by the Innovative Payments Association twenty times a year as a service to members.
Editors: Brian Tate, President and CEO, IPA; Ben Jackson, COO, IPA;  Grant Hannah, Director of Government Relations, IPA; Eli Rosenberg, Partner, Baird Holm LLP; and Gray Derrick, Partner, Baird Holm LLP.
Please address comments and suggestions to: gr@ipa.org.

​IPA Day of Payments
 
The IPA’s Day of Payments is just around the corner!  Learn from industry experts on how payment products are changing the face of consumer banking.  As the payments community continues to expand and financial institutions continue to partner with fintech companies, the time is now to learn more how the payments revolution can help to expand opportunities for more people into the financial services mainstream. Learn how about how different payment products work are driving online and mobile banking, and how they will have an impact on our day-to-day banking lives. If you want to have a hands-on, deep dive into the latest & greatest trends in payments? We’ll cover topics like prepaid, blockchain/cryptocurrency, digital dollar, and more! Don’t miss out!
 
Additional information and registration can be found here.
 
IPA Elevator
 
The IPA will host its first annual Fintech Elevator on August 26. This event will bring together IPA member companies and venture capitalists to hear pitches from startups in the Fintech space. Don’t miss out on this exciting opportunity to hear from some of the most innovative emerging companies in Fintech!
 
Registration and additional information can be found here.

FINANCIAL CRIMES ENFORCEMENT NETWORK (FinCEN)
FinCEN Issues FAQs Regarding Customer Due Diligence Requirements
On August 3, the Financial Crimes Enforcement Network (FinCEN) issued FAQs regarding customer due diligence requirements. According to FinCEN, these FAQs clarify the regulatory requirements related to obtaining customer information, establishing a customer risk profile, and performing ongoing monitoring of the customer relationship in order to assist covered financial institutions with their compliance obligations in these areas.

The FAQs can be accessed here.

FEDERAL RESERVE BANK OF ATLANTA
 
Atlanta Fed Releases 2019 Diary of Consumer Payment Choice
 
The Federal Reserve Bank of Atlanta has released its 2019 Diary of Consumer Payment Choice. The Diary measures payment behavior through the daily recording of U.S. consumers' spending. It includes estimates of the number, value, and average value of payments that all U.S. adult consumers made using the various U.S. payment instruments. It also includes estimates of cash held on person by denomination of currency, and it discusses changes in payment choice and cash holdings from 2018 to 2019.
Some highlights from the Diary include: 

• In October 2019, almost half of all payments (43 percent) U.S. consumers made were for groceries, gas, and shopping, both in person and online.
• By value, 40 percent of payments were for financial services, including mortgages, credit card bills, other loan payments, insurance, investments, and so on.
• The most commonly used payment instruments were debit cards, cash, and credit cards, which jointly accounted for 80 percent of all payments by number and 37 percent by value.
• In October 2019, almost half of all payments (43 percent) U.S. consumers made were for groceries, gas, and shopping, both in person and online.

The full report can be accessed here

HFSC Chairwoman Waters Introduces the Federal Reserve Racial and Economic Equity Act
 
On August 5, House Financial Services Committee Chair Maxine Waters (D-CA), along with Sens. Elizabeth Warren (D-MA) and Kristen Gillibrand (D-NY), introduced the “Federal Reserve Racial and Economic Equity Act”. This legislation would require the Federal Reserve to use its existing authorities to close racial employment and wage gaps and report on how the gaps change over time. Specifically, the bill would require the U.S. central bank to carry out its functions in a way that “minimizes and eliminates racial disparities in employment, wages, wealth, and access to affordable credit”, including its regulation and supervision of banks and its operation of payments systems.

Sen. Bob Menendez (D-NJ) Sends Letter Urging Negotiators to Ban Arbitration Clauses Attached to Relief Payments
 
On August 3, Senator Bob Menendez (D-NJ), a member of both the Senate Banking and Finance Committee, led a joint letter urging lead negotiators of the next COVID-19 stimulus package to prohibit forced arbitration clauses in any form of Economic Impact Payments (EIPs). In brief, the letter argues that arbitration clauses are a bad deal for consumers and further says that opt-out clauses are inadequate as many individuals may not even be aware that arbitration clauses are in the fine print. The letter concludes, “Given that many consumers are not even aware that arbitration clauses are included in EIP debit cards, combined with the unprecedented nature of this pandemic and the need for financial aid, we believe it is improper for the federal government to allow its contractors to include such anti-consumer clauses.”
 
It is important to note that some of the best evidence of the relative benefits of arbitration as compared to other forms of dispute resolution, such as class-action litigation, comes from the Consumer Financial Protection Bureau's 2015 Study on Arbitration. The CFPB's study notes that, as compared with class-action lawsuits, arbitration is quicker, less expensive, and generally more effective than class-action litigation.
 
Senate Banking Committee Ranking Member Sherrod Brown (D-OH), Senate Finance Committee Ranking Member Ron Wyden (D-OR), Sen. Catherine Cortez Masto (D-NV), Sen. Elizabeth Warren (D-MA), Sen. Jack Reed (D-RI), Sen. Chris Van Hollen (D-MD) and Sen. Sheldon Whitehouse (D-RI) also signed the letter. 
 
The full letter can be found here.

IPA Election Snapshot 
 
Given that we are now less than 100 days away from the November General Election, the IPA is pleased to announce the launch of our “Election Snapshot”. This periodic update will provide a look at where things stand ahead of November. The Snapshot will consist of a high-level state-of-play (“Snapshot Summary”) as well as slides from Bloomberg Government that provide a more in-depth look. Please find the first Snapshot Summary below and the slides from Bloomberg Government here. 
 
Snapshot Summary
 
Party Conventions: 
 
Democratic:
 
The Democratic National Convention (DNC) will be held from Monday, August 17 – Thursday, August 20 in Milwaukee, WI. Presumptive Democratic nominee Joe Biden is scheduled to deliver his acceptance speech for the Democratic nomination for President of the United States remotely on Thursday, August 20. 
 
Additional information about the DNC can be found here.
 
Republican:
 
The Republican National Convention (RNC) will be held from Monday, August 24 – Thursday, August 27 in Charlotte, NC. President Trump is scheduled to deliver his acceptance speech for the Republican nomination for President of the United States remotely on Thursday, August 27. 
 
Additional information about the RNC can be found here.
 
U.S. Senate: 
 

• Republicans currently hold a 6-seat majority (53-47) in the Senate
• If Democrats net four seats, they will take control of the Senate; netting three seats would result in a tie and the majority would be decided by the vice president’s party
• Democrats last defeated more than two Republican senators in 2008, when Barack Obama’s victory helped Democrats beat five GOP incumbents
• There are 35 Senate seats up for election in November
  • Republicans hold 23 of the seats, Democrats hold 12
  • President Trump in 2016 carried all but two states where Republicans are defending Senate seats in 2020; he won 15 of those states by at least 14 percentage points

New Federal Laws
None.

Pending Federal Bills
 
H.R. 189--Financial Institution Customer Protection Act of 2019
Summary: This bill specifies that a federal banking agency cannot request or order a financial institution to close a customer account unless the agency has a valid reason for doing so, and that reason cannot be only reputational risk.
Introduced:  Jan. 3, 2019
Status: The bill was referred to the House Committee on Financial Services on Jan. 3, 2019.
Sponsor: Rep. Blaine Luetkemeyer (R-MO); 0 co-sponsors. 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/189/all-actions?q=%7B%22search%22%3A%5B%22hr+189%22%5D%7D&s=2&r=1
 
H.R. 758--Cooperate with Law Enforcement Agencies and Watch Act of 2019
Summary: The bill would protect institutions from regulatory action for keeping accounts open at the request of law enforcement.
Introduced:  Jan. 24, 2019
Status: The bill was received in the Senate, read twice, and referred to the Committee on Banking, Housing, and Urban Affairs on March 12, 2019.
Sponsor: Rep. J. French Hill (R-AR); 2 co-sponsors. 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/758/cosponsors?q=%7B%22search%22%3A%5B%22hr+758%22%5D%7D&r=1&s=1
 
H.R. 907—To Clarify Exclusions from the Definition of a Deposit Broker
Summary: The bill would amend the Federal Deposit Insurance Act (“FDIA”) to clarify the exemptions from the definition of a “deposit broker.” Specifically, the bill would amend FDIA Section 29(g)(2)(I) to provide that a deposit broker does not include an agent or nominee (i) whose primary business purpose is not the placement of deposits with an insured financial institution; or (ii) who is an exclusive agent of an insurance company or insured depository institution affiliated with an insurance company, provided that the agent or nominee is, among other things, contractually prohibited from placing funds with any other unaffiliated depository institution.
Introduced:  Jan. 30, 2019
Status: The bill was referred to the House Committee on Financial Services on Jan. 30, 2019.
Sponsor: Rep. Darin LaHood (R-IL); 2 co-sponsors. 3% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/house-bill/907/text?r=55&s=1
 
H.R. 1423—Forced Arbitration Injustice Repeal (FAIR) Act
Summary: The bill would prohibit forced arbitration agreements and any agreements that would preclude class action lawsuits. 
Introduced:  Feb. 28, 2019
Status:  Received in the Senate and Read twice and referred to the Committee on the Judiciary on September 24, 2019.
Sponsor: Rep. Johnson, Henry C. “Hank,” Jr. (D-GA); 222 cosponsors. 3% chance of enactment (according to govtrack). 
Details: https://www.congress.gov/bill/116th-congress/house-bill/1423
 
H.R. 2514—Counter Act of 2019
Summary: This bill would make changes to the Bank Secrecy Act and anti-money laundering laws. It would require the financial regulators and Financial Crimes Enforcement Network to each appoint a civil liberties and privacy officer who would need to consult on any new regulations. It would create a public-private information sharing program between FinCEN and the financial services industry, and it would require AML training for examiners. 
Introduced: May 3, 2019
Status: The bill passed the House of Representatives on October 28, 2019 and was received in the Senate and referred to the Senate Banking Committee on October 29, 2019.
Sponsor: Rep. Emanuel Cleaver (D-MO); 2 co-sponsors, 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/2514?q=%7B%22search%22%3A%5B%22hr2514%22%5D%7D&r=1&s=2
 
H.R. 2630—Cash Always Should be Honored (CASH) Act
Summary: This bill would make it unlawful for any physical retail establishment to refuse to accept cash as payment.
Introduced:  May 9, 2019
Status: The bill was referred to the House Committee on Energy and Commerce on May 9, 2019.
Sponsor: Rep. David Cicilline (D-RI); 10 co-sponsors. 3% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/house-bill/2630
 
H.R. 4501— Consumer Transaction Account Protection Act of 2019
Summary: This bill would specify that consumer transaction account deposits of an insured depository institution shall not be considered to be funds obtained through a deposit broker.
Introduced:  September 26, 2019
Status: The bill was referred to the House Committee on Financial Services on September 26, 2019.
Sponsor: Rep. Roger Williams (R-TX); 1 co-sponsor. 3% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/house-bill/4501?r=11&s=1
 
H.R. 4767—Financial Services Innovation Act of 2019
Summary: The bill requires federal regulators to create Financial Services Innovation Offices (FSIOs) within their agencies to foster innovation in financial services. Companies would also be able to apply for an “enforceable compliance agreement” with the FSIOs that, if accepted, will allow them to provide an innovative product or service under an alternative compliance plan.
Introduced:  Oct. 21, 2019
Status: The bill was referred to the House Financial Services Committee and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. On Nov. 11, 2019 it was referred to the Subcommittee on Commodity Exchanges, Energy, and Credit of the Committee on Agriculture.
Sponsor: Rep. Patrick McHenry (R-NC); 1 co-sponsor; 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/4767?q=%7B%22search%22%3A%5B%224767%22%5D%7D&s=1&r=1
 
H.R. 6116-- Consumer Financial Protection Commission Act
Summary: The bill would eliminate signatures for swipe, dip, or tap point-of-sale transactions.
Introduced:  March 5, 2020
Status: The bill was referred to the House Financial Services Committee.
Sponsor: Rep. Blaine Luetkemeyer (R-MO); 25 co-sponsors; 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/house-bill/6116/cosponsors?r=4&s=1&searchResultViewType=expanded&KWICView=false
 
H.R. 6241-- Touchless Transactions Act of 2020
Summary: The bill would convert the leadership structure of the CFPB from a sole director to a commission. The commission would be made up of 5 members who are appointed by the president and approved by the Senate to serve 5-year terms. No more than 3 members of the commission would be allowed to be from the same political party. The name of the Bureau would also be changed to the Consumer Financial Protection Commission. 
Introduced:  March 12, 2020
Status: The bill was referred to the House Financial Services Committee.
Sponsor: Rep. French Hill (R-AR); 10 co-sponsors; 3% chance of enactment (according to govtrack).
 
S. 142—The American Data Dissemination Act
Summary: The bill would impose privacy requirements on providers of internet services similar to the requirements imposed on federal agencies under the Privacy Act of 1974.
Introduced: Jan. 16. 2019
Status: The bill was referred to the Senate Commerce, Science, and Transportation Committee on Jan. 16, 2019.
Sponsor: Sen. Marco Rubio (R-FL), 0 co-sponsors, 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/senate-bill/142/text?q=%7B%22search%22%3A%5B%22S.142%22%5D%7D&r=1&s=3
 
S. 149—Stop Senior Scams Act
Summary:  The bill would establish an advisory council made up of federal regulators and industry representatives from, among others, gift card and prepaid card companies, to collect and review information in the development of model materials to provide to retailers, financial services companies, and wire-transfer companies to be used to educate employees on how to identify and prevent scams affecting seniors.
Introduced: Jan. 16, 2019
Status: Passed the Senate on June 16, 2020 by unanimous consent and was sent to the House of Representatives for further consideration. 
Sponsor:  Sen. Robert Casey (D-PA); 2 co-sponsors, 83% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/senate-bill/149/text?q=%7B%22search%22%3A%5B%22S.149%22%5D%7D&r=1&s=2
 
S. 189—The Social Media Privacy Protection and Consumer Rights Act of 2019
Summary: This bill requires online platform operators to inform a user, prior to a user creating an account or otherwise using the platform, that the user’s personal data produced during online behavior will be collected and used by the operator and third parties.
Introduced: Jan. 17, 2019
Status: Read twice and referred to the Committee on Commerce, Science, and Transportation on Jan. 17, 2019
Sponsor:  Sen. Amy Klobuchar (D-MN); 3 co-sponsors, 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/senate-bill/189/text?q=%7B%22search%22%3A%5B%22S.189%22%5D%7D&r=1&s=1
 
S. 453—A Bill to Amend the Consumer Financial Protection Act of 2010 to Subject the Bureau of Consumer Financial Protection to the Regular Appropriations Process
Summary: The bill would amend the Consumer Financial Protection Act of 2010 to subject the Consumer Financial Protection Bureau to the regular appropriations process.
Introduced:  Feb. 12, 2019
Status:  Read twice and referred to the Committee on Banking, Housing, and Urban Affairs on Feb. 12, 2019.
Sponsor: Sen. David Perdue (R-GA); 18 cosponsors. 3% chance of enactment (according to govtrack). 
Details: https://www.congress.gov/bill/116th-congress/senate-bill/453

S. 3108— Consumer Transaction Account Protection Act of 2019
Summary: This bill would specify that consumer transaction account deposits of an insured depository institution shall not be considered to be funds obtained through a deposit broker.
Introduced:  December 19, 2020
Status: The bill was referred to the Committee on Banking, Housing, and Urban Affairs on December 19, 2019.
Sponsor: Sen. Doug Jones (D-AL); 2 co-sponsors. 3% chance of enactment (according to govtrack).
Details:https://www.congress.gov/bill/116th-congress/senate-bill/3108?q=%7B%22search%22%3A%5B%22brokered+deposits%22%5D%7D&s=4&r=2
 
S. 3962— Asset Growth Restriction Act of 2020
Summary: The bill would strike the current legal framework for brokered deposits and replace it with an authorization for the FDIC to limit the asset growth of financially troubled banks by regulation, rule, or order.
Introduced:  June 15, 2020
Status: The bill was referred to the Committee on Banking, Housing, and Urban Affairs on June 15, 2020.
Sponsor: Sen. Jerry Moran (R-KS); 0 co-sponsors. 3% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/senate-bill/3962?s=7&r=9

​​​​​​​​is issued by the Innovative Payments Association twenty times a year as a service to members.
Editors: Brian Tate, President and CEO, IPA; Ben Jackson, COO, IPA;  Grant Hannah, Director of Government Relations, IPA; Eli Rosenberg, Partner, Baird Holm LLP; and Gray Derrick, Partner, Baird Holm LLP.
Please address comments and suggestions to: gr@ipa.org.

IPA Podcast: Will Cash Survive COVID 19?
 
COVID19 has led to speculation that the pandemic could be the catalyst for the arrival of the cashless society, but research suggest that our assumptions on how the pandemic is shaping payments may need revisiting.

Stay-at-home measures and pandemic fears have led to an increase in online shopping. At the same time, some brick and mortar merchants are refusing cash as a defense against germs. Nonetheless, consumers haven’t abandoned cash just yet. 
Rachel Huber, senior analyst in payments at Javelin Strategies and Research completed a study on the health of cash for ATM provider Cardtronics in late 2019. Given the pandemic, the company thought that she should do another survey to see how the pandemic changed things. 

To give you a sneak preview, it might be too soon to call it a day for cash payments just yet. And our assumptions about who is using cash and why may not be correct. In looking at cash in the context of other payments, Huber learned a few things about contactless adoption as well. 

You can hear about how things are playing out in the episode and find the complete study online. 

Listen to the podcast here!

​IPA Summer of Learning Webinar: Conversation with the CFPB
 
The IPA will host a webinar as part of our Summer of Learning series on July 23 that will feature a conversation with Kirsten Sutton, Chief of Staff and Paul Watkins, Director, Office of Innovation of the Consumer Financial Protection Bureau. Join the IPA & the CFPB as we discuss the CFPB’s COVID-19 Response, the Prepaid Rule, Innovation, and what's coming down the pipeline from the CFPB.
 
Additional information and registration can be found here. Also, please check out the other webinars from our Summer of Learning series!
 
IPA Summer of Learning Webinar: Fireside Chat with OCC Acting Comptroller
 
Join us on July 30 for a fireside chat with the Acting Comptroller of the Currency. We will discuss the OCC’s priorities during the COVID-19 crisis, including the OCC’s Fintech Charter, the potential for a Payment’s Charter, True Lender issues.
 
Additional information and registration can be found here.
 
IPA Summer of Learning: Fireside chat with Joe Vaughn
 
As part of IPA’s Summer of Learning Series, the IPA will host a virtual fireside chat with Joe Vaughn, Senior Diversity and Inclusion Policy Advisor to Rep. Joyce Beatty (D-OH) who chairs the Subcommittee on Diversity & Inclusions of the House Financial Services Committee. Join us to hear from Joe about Chair Beatty’s priorities for her work leading the Diversity & Inclusion Subcommittee, how the Committee is responding to the current national conversation, and more. This timely and important conversation will take a place on Wednesday, August 5 at 2 PM ET.
 
Additional information and registration can be found here.

CONSUMER FINANCIAL PROTECTION BUREAU (CFPB)

CFPB Issues Final Rule on Small Dollar Lending
 
On July 7, the CFPB released issued a final rule concerning small dollar lending “in order to maintain consumer access to credit and competition in the marketplace.” The final rule rescinds the mandatory underwriting provisions of the 2017 rule after re-evaluating the legal and evidentiary bases for these provisions and finding them to be insufficient. The final rule does not rescind or alter the payments provisions of the 2017 rule. 
The Bureau says rescinding the mandatory underwriting provisions of the 2017 rule ensures that consumers have access to credit and competition in states that have decided to allow their residents to use such products, subject to state-law limitations. Currently, 32 states allow small dollar lending. Many of these states set maximum interest rates for small dollar loans or impose other restrictions or limitations on their use.  
The Bureau is also moving forward with implementing the payments provisions of the 2017 final rule. These provisions prohibit lenders from making a new attempt to withdraw funds from an account where two consecutive attempts have failed unless consumers consent to further withdrawals. The payment provisions also require such lenders to provide consumers with written notice before making their first attempt to withdraw payment from their accounts and before subsequent attempts that involve different dates, amounts, or payment channels. These provisions are intended to increase consumer protections from harm associated with lenders’ payment practices. 
Additional information can be found here.

CFPB Issues July 2020 CFPB Complaint Bulletin

On July 16, the CFPB released its July Complaint Bulletin. The Complaint Bulletin reflects complaint data from complaints submitted in 2020, as of June 15, and outlines trends in complaints mentioning coronavirus keywords. 
 
Specifically, the Bulletin highlights that:

• Consumers have submitted approximately 187,000 complaints to the Bureau in 2020, including more than 8,000 complaints that include coronavirus keywords.
• Mortgages (1,575 or 19%) and credit cards (1,512 or 18%) received the most COVID complaints.
  • This differed from complaints overall, which were most often about credit or consumer reporting and debt collection.
• Prepaid received 338 complaints or 4% of all COVID complaints. 
  • Trouble using the card 38% (130) was the most cited concern.
• Comparing the weekly average complaint volume before and after the emergency declaration, shows that prepaid card complaints saw the greatest percent increase and student loan complaints saw the greatest percent decrease. Some of these changes may be explained, in part, by recent changes in market conditions, such as increased unemployment and the implementation of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

 
The full bulletin can be accessed here.

CFPB To Host Symposium on July 29
 
On July 22, the CFPB announced that it will hold a symposium on the use of cost-benefit analysis in consumer financial protection regulation on July 29, 2020 at 9:30 AM ET. According to the Bureau, the symposium is intended to seek perspectives the use of cost-benefit analysis in consumer financial protection regulations. The Bureau also says it is exploring developments in the cost-benefit analysis arena and will consider lessons that may be useful as it nears the start of its second decade of work. 

The event will feature remarks by Bureau Director Kathleen L. Kraninger. This symposium will consist of two panels of experts. The first panel will consider questions related to how the Bureau should use cost-benefit analysis in developing consumer financial regulations and whether the Bureau’s practices provide the proper incentives for the best use and reporting of cost-benefit analysis. The second panel will focus on how the Bureau may help advance the methodology of cost-benefit analysis for consumer financial regulation. The panel may also consider the data and economic models that should be developed for cost-benefit analysis of consumer financial regulation, how to address distributional concerns, and how to partner with others in this work.
 
The symposium will be livestreamed on the Bureau’s website. Additional information can be found in the press release below and the link to register can be found here
 
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)
FDIC Releases RFI on Voluntary Certification Program to Promote New Technologies
On July 20, the Federal Deposit Insurance Corporation (FDIC) released a request for information (RFI) seeking public input on the potential for a public/private standard-setting partnership and voluntary certification program to promote the efficient and effective adoption of innovative technologies at FDIC-supervised financial institutions. The FDIC says, given rapid technological developments and evolving consumer behavior, this public/private partnership model program has the potential to help promote innovation across the banking sector and streamline a costly and often duplicative system for both banks and technology firms.
 
Specifically, the RFI asks whether the proposed program might reduce the regulatory and operational uncertainty that may prevent financial institutions from deploying new technology or entering into partnerships with technology firms, including “fintechs.” 
 
Additional information can be found here and a copy of the RFI can be found attached. Comments will be due 60 days from publication in the Federal Register. The IPA is considering filing comments in response. If you have any feedback, comments, or concerns, please let Grant Hannah (ghannah@ipa.org) or Brian Tate (btate@ipa.org) know. 
 
FINANCIAL CRIMES ENFORCEMENT NETWORK (FinCEN)
FinCEN Alerts Financial Institutions to Convertible Virtual Currency Scam Involving Twitter
On July 16, the Financial Crimes Enforcement Network (FinCEN) issued an alert to financial institutions in response to a high-profile scam exploiting Twitter accounts to solicit fraudulent payments denominated in convertible virtual currency (CVC). The alert emphasizes that it is critical that CVC exchanges and other financial institutions identify and report suspicious transactions associated with this type of activity as quickly as possible. It further indicates that financial institutions should include any relevant technical cyber indicators related to cyber events and associated transactions within the available structured cyber event indicator fields on the Suspicious Activity Report (SAR) form. 
 
Read the alert here.
 
FEDERAL TRADE COMMISSION (FTC)
 
Supreme Court Agrees to Hear Cases on FTC’s Authority to Impose Penalties
 
The Supreme Court has agreed to hear the cases AMG Capital Management v. Federal Trade Commission and Federal Trade Commission v. Credit Bureau Center.
 
In the cases, justices will weigh in on a provision of the Federal Trade Commission Act that gives the FTC the power to go to district court to seek a permanent injunction to enforce Section 5 of the act, which bars “unfair methods of competition” and “unfair or deceptive acts or practices.” The question that the court agreed to hear is whether the act also gives the FTC the power to require defendants to return money that they obtained as a result of their illegal activities. AMG Capital Management asked the Supreme Court to review a decision by the U.S. Court of Appeals for the 9th Circuit that upheld a district court order requiring the company to pay the FTC over a billion dollars in “restitution.” The FTC sought review of a ruling by the U.S. Court of Appeals for the 7th Circuit that reversed a district court order requiring a company to pay the FTC over five million dollars after it offered consumers a “free” credit report but then enrolled them in a credit-monitoring service at a cost of $30 per month. Both petitions were filed last year, but the justices did not act on them previously — probably because the petitions were on hold until the court decided Liu v. Securities and Exchange Commission, involving the SEC’s authority to seek repayment of profits in civil enforcement actions. Notably, the petition for review in Credit Bureau Center was filed by the FTC itself, rather than the U.S. solicitor general, who usually represents the federal government and its agencies in the Supreme Court; the government did not defend the 9th Circuit’s ruling in the FTC’s favor in AMG Capital Management or in another case that now appears to be on hold until these cases are decided.​

Additional information can be found here.

​None.

Gift Card Bill Introduced in NY Senate
 
On July 15, a gift card related piece of legislation (SB 8780) was introduced in the New York Senate. In brief, the bill would limit activation fees for open loop cards (the lesser of $4 or 5% of the value) and prohibit the expiration of funds on most gift cards. A more detailed summary can be found below. 
 
The bill is sponsored by Sen. Shelley Mayer (D), who chairs the Education Committee and has been in the Senate since 2013. The bill has been referred to the Senate Consumer Protection Committee, where it currently sits awaiting further action. 
 
As a note, Sen. Mayer, previously introduced a similar, though not identical bill, SB 5771.

​Summary

• Prohibits the issuance of any gift certificate subject to, any activation fee, retroactive fee, redemption fee, service fee, dormancy fee, latency fee, administrative fee, handling fee, access fee, periodic fee, renewal fee, re-loading fee, or any other fee of any kind, other than an open loop gift certificate subject to an initial one-time activation or issuance fee not in excess of the lesser of four dollars or five percent of the face value of such open loop gift certificate.
• Prohibits the selling of a gift certificate that has a face value or balance that declines as a result of the passage of time or the dormancy of a gift certificate.
• Prohibits the selling or issuing of a gift certificate, other than a promotional gift certificate, where the gift certificate or the underlying funds are subject to an expiration date.
• Requires that a gift certificate, other than an open loop gift certificate, with a remaining value of less than five dollars may be redeemed upon request for its cash value.

 
The IPA will track this legislation through and send out updates through our Government Relations Working Group (GRWG). To join the GRWG, please contact Grant Hannah.

​Biden Campaign Releases “Biden-Sanders Unity Task Force” Policy Recommendation
 
Joe Biden’s presidential campaign has released policy recommendations from the “Biden-Sanders Unity Task Force”, which touches on several policy areas, including areas relating to banking, payments, and financial services. The 110-page document lays out policy recommendations for the former vice president to pursue and includes language for the 2020 Democratic platform. The Biden-Sanders Unity Task Force was formed in May by Vice President Biden and Senator Bernie Sanders (I-VT) to promote unity within the Democratic Party.  
 
We wanted to highlight the following policy recommendations from the document: 
 
Starting on p. 18 –
 
Ensuring Equitable Access to Banking and Financial Services
 
One in four American households are either unbanked or underbanked, putting them at risk of losing money due to exorbitant fees or usurious interest rates. Democrats will support and encourage Congressional efforts to guarantee affordable, transparent, trustworthy banking services for low- and middle-income families, including bank accounts and real-time payment systems through the Federal Reserve and easily accessible service locations, including postal banking. Democrats will also expand access to credit by creating a public credit reporting agency to provide a non-discriminatory credit reporting alternative to the private agencies, and will require its use by all federal lending programs, including home lending and student loans. And we will reinvigorate the Consumer Financial Protection Bureau to ensure that banks and lenders cannot prey on consumers.
 
The scars of the financial crisis that triggered the Great Recession are still present in our economy and our society. Banks should never be “too big to fail.” Democrats will work to reverse the over-financialization of the American economy by maintaining and expanding safeguards that separate retail banking institutions from more risky investment operations. We will strengthen and enforce the Obama-Biden Administration’s Dodd-Frank financial reform law to protect American workers from the impacts of future financial crises. And when justified by the law, we will back criminal penalties for reckless executives who illegally gamble with the savings and economic security of their clients and American communities.
 
On p. 74 – 
 
Banking, Federal Investment, Economic Power for All
 
Access to financial services and postal banking: Serve the unbanked, increase equity and trust: Support and encourage Congressional efforts to expand access to affordable banking, including short and long-term loans and better banking services to communities so they do not have to rely on predatory lenders.

• Fed accounts: Everyone should have an affordable bank account and believe that the Federal Reserve can play that role. 
• Real time payments: Federal Reserve should create a real-time payment system, so families and individuals do not have to wait days for their checks to settle.
• Postal banking: Government should provide easily accessible service locations, especially postal banking to make it possible for everyone to access physical banking locations

 
Wall Street: Maintain and expand safeguards that separate retail banking institutions from more risky investments. Additionally, strengthen and protect Dodd-Frank provisions to ensure that the harmful impacts of a financial crisis can never again erode the American economy. 
 
Protect consumers from usurious interest rates: Strengthen oversight of consumer lending, including credit cards (as required by Dodd-Frank), through the CFPB and enforce remedies for abusive or deceptive practices. Require transparency on rates charged by ZIP code. Pursue legislative options to limit predatory interest rates on non-residential consumer lending.
 
Tackle inequities stemming from credit reporting: Create the Public Credit Reporting Agency within the Consumer Financial Protection Bureau to provide consumers with a government option that seeks to minimize racial disparities. All federal lending will accept this credit agency and require that this agency be used. This includes, but would not be limited to federal home lending, PLUS loans (parent loans backed by the U.S. government), other loans that are guaranteed by the U.S. government, as well as any employment through federal agencies or for federal contracts.

• The private agencies will also be required to provide their data to the federal credit agency.
• The federal credit agency will also ensure the algorithms used for credit scoring don’t have discriminatory impacts, including accepting non-traditional sources of data like rental history and utility bills to ensure credit.

 
Corporate consolidation: Antitrust regulators should have the power, authority, and budget to conduct a thorough review of mergers and acquisitions.

• Have antitrust regulators conduct a thorough review of all mergers and acquisitions since Trump took office and assess those that have created highly concentrated markets, demonstrably caused harm to workers, raised prices, exacerbated racial inequality or reduced competition. Take steps to hold these companies accountable and derive policies to repair the damage done to working people and to reverse the impact on racial inequity.

 
Enforcement: The enforcement agencies should test for and assess racial equity as part of their enforcement actions, including EEOC, FTC and CFPB.
 
We recognize the empirical literature showing that race plays an important role in employment decisions, with negative impacts for workers of color. We believe it is important for government agencies like the EEOC, CFPB and FTC to take a proactive approach to studying the racial impacts of economic decisions and take the necessary proactive enforcement actions to addressing racial discrimination. 
 
The government should use various forms of testing, including paired testing, and conduct more thorough research on employment impacts by race, including by funding robust and transparent social science research on race and differential outcomes in employment, health, education, criminal justice, and other areas through the National Academies. The administration will make this research transparent, target enforcement and hold companies and organizations accountable where disparate treatment is found
 
The full document can be accessed here.

New Federal Laws
 
None.
 
Pending Federal Bills
 
H.R. 189--Financial Institution Customer Protection Act of 2019
Summary: This bill specifies that a federal banking agency cannot request or order a financial institution to close a customer account unless the agency has a valid reason for doing so, and that reason cannot be only reputational risk.
Introduced:  Jan. 3, 2019
Status: The bill was referred to the House Committee on Financial Services on Jan. 3, 2019.
Sponsor: Rep. Blaine Luetkemeyer (R-MO); 0 co-sponsors. 2% chance of enactment (according to govtrack).
Details
 
H.R. 758--Cooperate with Law Enforcement Agencies and Watch Act of 2019
Summary: The bill would protect institutions from regulatory action for keeping accounts open at the request of law enforcement.
Introduced:  Jan. 24, 2019
Status: The bill was received in the Senate, read twice, and referred to the Committee on Banking, Housing, and Urban Affairs on March 12, 2019.
Sponsor: Rep. J. French Hill (R-AR); 2 co-sponsors. 2% chance of enactment (according to govtrack).
Details
 
H.R. 907—To Clarify Exclusions from the Definition of a Deposit Broker
Summary: The bill would amend the Federal Deposit Insurance Act (“FDIA”) to clarify the exemptions from the definition of a “deposit broker.” Specifically, the bill would amend FDIA Section 29(g)(2)(I) to provide that a deposit broker does not include an agent or nominee (i) whose primary business purpose is not the placement of deposits with an insured financial institution; or (ii) who is an exclusive agent of an insurance company or insured depository institution affiliated with an insurance company, provided that the agent or nominee is, among other things, contractually prohibited from placing funds with any other unaffiliated depository institution.
Introduced:  Jan. 30, 2019
Status: The bill was referred to the House Committee on Financial Services on Jan. 30, 2019.
Sponsor: Rep. Darin LaHood (R-IL); 2 co-sponsors. 2% chance of enactment (according to govtrack).
Details
 
H.R. 1423—Forced Arbitration Injustice Repeal (FAIR) Act
Summary: The bill would prohibit forced arbitration agreements and any agreements that would preclude class action lawsuits. 
Introduced:  Feb. 28, 2019
Status:  Received in the Senate and Read twice and referred to the Committee on the Judiciary on September 24, 2019.
Sponsor: Rep. Johnson, Henry C. “Hank,” Jr. (D-GA); 222 cosponsors. 2% chance of enactment (according to govtrack). 
Details
 
H.R. 2514—Counter Act of 2019
Summary: This bill would make changes to the Bank Secrecy Act and anti-money laundering laws. It would require the financial regulators and Financial Crimes Enforcement Network to each appoint a civil liberties and privacy officer who would need to consult on any new regulations. It would create a public-private information sharing program between FinCEN and the financial services industry, and it would require AML training for examiners. 
Introduced: May 3, 2019
Status: The bill passed the House of Representatives on October 28, 2019 and was received in the Senate and referred to the Senate Banking Committee on October 29, 2019.
Sponsor: Rep. Emanuel Cleaver (D-MO); 2 co-sponsors, 2% chance of enactment (according to govtrack).
Details

H.R. 2630—Cash Always Should be Honored (CASH) Act
Summary: This bill would make it unlawful for any physical retail establishment to refuse to accept cash as payment.
Introduced:  May 9, 2019
Status: The bill was referred to the House Committee on Energy and Commerce on May 9, 2019.
Sponsor: Rep. David Cicilline (D-RI); 10 co-sponsors. 2% chance of enactment (according to govtrack).
Details
 
H.R. 4501— Consumer Transaction Account Protection Act of 2019
Summary: This bill would specify that consumer transaction account deposits of an insured depository institution shall not be considered to be funds obtained through a deposit broker.
Introduced:  September 26, 2019
Status: The bill was referred to the House Committee on Financial Services on September 26, 2019.
Sponsor: Rep. Roger Williams (R-TX); 1 co-sponsor. 2% chance of enactment (according to govtrack).
Details

H.R. 4767—Financial Services Innovation Act of 2019
Summary: The bill requires federal regulators to create Financial Services Innovation Offices (FSIOs) within their agencies to foster innovation in financial services. Companies would also be able to apply for an “enforceable compliance agreement” with the FSIOs that, if accepted, will allow them to provide an innovative product or service under an alternative compliance plan.
Introduced:  Oct. 21, 2019
Status: The bill was referred to the House Financial Services Committee and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. On Nov. 11, 2019 it was referred to the Subcommittee on Commodity Exchanges, Energy, and Credit of the Committee on Agriculture.
Sponsor: Rep. Patrick McHenry (R-NC); 1 co-sponsor; 2% chance of enactment (according to govtrack).
Details
 
H.R. 6116-- Consumer Financial Protection Commission Act
Summary: The bill would eliminate signatures for swipe, dip, or tap point-of-sale transactions.
Introduced:  March 5, 2020
Status: The bill was referred to the House Financial Services Committee.
Sponsor: Rep. Blaine Luetkemeyer (R-MO); 25 co-sponsors; 4% chance of enactment (according to govtrack).
Details
 
H.R. 6241-- Touchless Transactions Act of 2020
Summary: The bill would convert the leadership structure of the CFPB from a sole director to a commission. The commission would be made up of 5 members who are appointed by the president and approved by the Senate to serve 5-year terms. No more than 3 members of the commission would be allowed to be from the same political party. The name of the Bureau would also be changed to the Consumer Financial Protection Commission. 
Introduced:  March 12, 2020
Status: The bill was referred to the House Financial Services Committee.
Sponsor: Rep. French Hill (R-AR); 10 co-sponsors; 4% chance of enactment (according to govtrack).
 
S. 142—The American Data Dissemination Act
Summary: The bill would impose privacy requirements on providers of internet services similar to the requirements imposed on federal agencies under the Privacy Act of 1974.
Introduced: Jan. 16. 2019
Status: The bill was referred to the Senate Commerce, Science, and Transportation Committee on Jan. 16, 2019.
Sponsor: Sen. Marco Rubio (R-FL), 0 co-sponsors, 2% chance of enactment (according to govtrack).
Details

S. 149—Stop Senior Scams Act
Summary:  The bill would establish an advisory council made up of federal regulators and industry representatives from, among others, gift card and prepaid card companies, to collect and review information in the development of model materials to provide to retailers, financial services companies, and wire-transfer companies to be used to educate employees on how to identify and prevent scams affecting seniors.
Introduced: Jan. 16, 2019
Status: Passed the Senate on June 16, 2020 by unanimous consent and was sent to the House of Representatives for further consideration. 
Sponsor:  Sen. Robert Casey (D-PA); 2 co-sponsors, 83% chance of enactment (according to govtrack).
Details: https://www.congress.gov/bill/116th-congress/senate-bill/149/text?q=%7B%22search%22%3A%5B%22S.149%22%5D%7D&r=1&s=2
 
S. 189—The Social Media Privacy Protection and Consumer Rights Act of 2019
Summary: This bill requires online platform operators to inform a user, prior to a user creating an account or otherwise using the platform, that the user’s personal data produced during online behavior will be collected and used by the operator and third parties.
Introduced: Jan. 17, 2019
Status: Read twice and referred to the Committee on Commerce, Science, and Transportation on Jan. 17, 2019
Sponsor:  Sen. Amy Klobuchar (D-MN); 3 co-sponsors, 2% chance of enactment (according to govtrack).
Details
 
S. 453—A Bill to Amend the Consumer Financial Protection Act of 2010 to Subject the Bureau of Consumer Financial Protection to the Regular Appropriations Process
Summary: The bill would amend the Consumer Financial Protection Act of 2010 to subject the Consumer Financial Protection Bureau to the regular appropriations process.
Introduced:  Feb. 12, 2019
Status:  Read twice and referred to the Committee on Banking, Housing, and Urban Affairs on Feb. 12, 2019.
Sponsor: Sen. David Perdue (R-GA); 18 cosponsors. 2% chance of enactment (according to govtrack). 
Details
 
S. 3108— Consumer Transaction Account Protection Act of 2019
Summary: This bill would specify that consumer transaction account deposits of an insured depository institution shall not be considered to be funds obtained through a deposit broker.
Introduced:  December 19, 2020
Status: The bill was referred to the Committee on Banking, Housing, and Urban Affairs on December 19, 2019.
Sponsor: Sen. Doug Jones (D-AL); 2 co-sponsors. 2% chance of enactment (according to govtrack).
Details
 
S. 3962— Asset Growth Restriction Act of 2020
Summary: The bill would strike the current legal framework for brokered deposits and replace it with an authorization for the FDIC to limit the asset growth of financially troubled banks by regulation, rule, or order.
Introduced:  June 15, 2020
Status: The bill was referred to the Committee on Banking, Housing, and Urban Affairs on June 15, 2020.
Sponsor: Sen. Jerry Moran (R-KS); 0 co-sponsors. 2% chance of enactment not yet available (according to govtrack).
Details