Christopher Grieco

The recent #CFPB report on state consumer #privacy laws and consumer financial data is an important read for anyone interested in the development of state privacy laws. From my perspective, post-election, the report offers a straightforward argument to state policymakers in their ongoing development of privacy legislation: stop exempting financial institutions. As the CFPB explains, existing federal laws protecting consumer financial data (the GLBA and FCRA) do not fully prevent the sharing of such data with third parties (among other things). State laws are becoming better equipped at offering robust protections to consumers; but by exempting GLBA and FCRA covered entities, consumers providing data to financial institutions will not reap the same benefits. As the CFPB explains, state privacy laws are generally not inconsistent with existing federal consumer financial data protection laws. What the CFPB doesn't say is that federal law in the privacy space is now unlikely to change in the foreseeable future, so it's up to states to extend protections to consumer financial data . Expect movement in this space on the state level, with this CFPB report existing as an important exhibit during that process. https://lnkd.in/e6XnvWwu

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Check out the latest list of Financial Technology Association members speaking at Money20/20! Excited to listen and learn!

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A good summary of the USG’s national security concerns driving AI-related export controls is in the preamble to this proposed rule https://lnkd.in/eNcfhyqj

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Troy Paredes, former SEC Commissioner, expressed concerns about the SEC's approach to digital assets at TokenizeThis 2024 conference. He pointed out a jurisdictional issue in determining what qualifies as a security under the Howey test. Paredes highlighted the need for clarity and adaptation of regulatory frameworks for digital assets to reduce uncertainty for firms. Many criticize the SEC's enforcement actions on crypto firms, leading lawmakers to consider limiting the commission's authority. #CryptoRegulation #SEC #DigitalAssets #TokenizeThis2024

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BSA | The Software Alliance has published its policy agenda on Artificial Intelligence and Digital Replication. https://lnkd.in/eTkwqGK2 Excerpts: * Artificial Intelligence (AI) is opening new pathways for creators to develop their craft, give expression to their ideas, and develop new artistic works and performances. * AI tools can help artists enhance their creative experimentation and workflow across all art forms. * This includes the use of AI-enhanced special effects and sound mixing in film and music production, as well as AI-enhanced CAD/CAM tools in sculpture, architecture, and applied arts. * Writers use AI-enhanced word processing, reference, and drafting aids in the development of new literary expressions. * Generative AI tools offer new approaches to leverage data analytics to help spark and enrich the intuitive ideation and critical thinking that lies at the core of human imagination and artistic expression. * However, AI tools can also be misused for the commercial dissemination of unauthorized digital replicas of an artist’s name, image, likeness, or voice. This improper activity is particularly detrimental to artists who depend upon their reputation and public recognition for their livelihood. * BSA urges Congress to take steps to protect artists from the spread of such unauthorized AI-generated digital replicas—drawing on the following principles: 1. Create New Rights for Artists: Artists should have the right to prevent the unauthorized commercial dissemination of any digital replica that is so realistic that a reasonable observer would believe it is the actual artist’s name, image, likeness, or voice. 2. Deter the Intentional Dissemination of Unauthorized Digital Replicas 3. Deter Technologies That Are Primarily Designed to Disseminate Unauthorized Replicas. 4. Knowledge Should Be a Predicate for Liability. 5. Create Incentives to Quickly Remove Unauthorized Replicas Online To protect artists and remove unauthorized digital replicas as quickly as possible, service providers should be encouraged to remove unauthorized replicas expeditiously. 6. Safeguard Constitutionally and Statutorily Protected Uses. Congress should shield from liability a use of a digital replica for statutorily permitted purposes such as criticism, comment, news reporting, teaching, scholarship, or research (in line with 17 USC § 107); any use covered by the First Amendment of the US Constitution; and any use that is de minimis, transient, or incidental. 7. Consider Additional Protections for Writers, Photographers, and Graphic or Applied Artists 8. Protect Artists From Unfair Practices in Licensing Negotiations

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💡 All eyes 💡 towards the next step in Custodia Bank/Caitlin Long's appeal against the Federal Reserve Board of Governors and Federal Reserve Bank of Kansas City in the 10th Circuit in Denver 👀👏 🐎👩‍⚖️🐼 👩‍⚖️ A phenomenal group filed amicus briefs by the deadline which was July 3 - and I have written a summary of those which is here: https://lnkd.in/gEPV6dHd 👩‍⚖️ The immediate next step will be will be the FRBG/FRBK (appellees'/respondents') - brief - which is due at the end of August on 08/28/2024 (in theory can't be extended but might) 👩‍⚖️ Custodia (the appellant) then must file a reply brief by 09/18/2024 - that's 21 days from 08/28/2024 👩‍⚖️ Thus the appeal should in theory be fully briefed by 09/18/2024 👩‍⚖️ Oral argument should get scheduled between now and then 💡 CourtListener for the case is here: https://lnkd.in/gCFH8Prw 💡 This is the text of the applicable procedure order (filed on 06/28/2024): 11101421 Order filed by Clerk of the Court - granting in part Appellees' joint motion to extend time to file eres brief. Appellees brief now due 08/28/2024 for Federal Reserve Board of Governors and Federal Reserve Bank of Kansas City. No further extensions will be granted on the Clerk's authority. Served on 06/28/2024. Text only entry - no attachment. [24-8024] [Entered: 06/28/2024 03:38 PM] 💡 Some of the above timing is pursuant to the Federal Rules of Appellate Procedure (FRAP) 31(a) - "The appellant may serve and file a reply brief within 21 days after service of the appellee's brief but a reply brief must be filed at least 7 days before argument, unless the court, for good cause, allows a later filing." See FRAP here: https://lnkd.in/gmwrcMcA

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On October 1, 2024, the USPTO published a new final rule on Director Review of PTAB decisions, which codifies many aspects of the PTAB's most recent revised interim Director Review process. Read our latest client alert by Jennifer Chagnon, which addresses the various topics covered by the final rule. https://gag.gl/hSBkqP #PTAB #FinalRule #USPTO

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On October 1, 2024, the USPTO published a new final rule on Director Review of PTAB decisions, which codifies many aspects of the PTAB's most recent revised interim Director Review process. Read our latest client alert by Jennifer Chagnon, which addresses the various topics covered by the final rule. https://gag.gl/hSBkqP #PTAB #FinalRule #USPTO

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Crypto.com sues US SEC after receiving Wells Notice from SEC enforcement. While there are quite valid arguments to be made about the SEC's handling of digital asset regulation by enforcement, these types of cases are rarely successful where defendant attempts to ambush the SEC before they file. We will keep an eye on developments. https://lnkd.in/dkffFCTi

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Money laundering is a very serious concern when it comes to crypto, in addition to another interrelated topic, tax fraud. In order to address those issues--as well as to weed out an assortment of bad actors that have taken up persistent residence in the Web3 universe--there must be more transparency in terms of underlying crypto identities.  Naturally, there has been pushback on this from crypto die-hards who have routinely promoted the (relative) anonymity of crypto and are reluctant to cede this ground. As a counterpoint, they often suggest that the blockchain itself should serve as a deterrent to criminal activity by making all financial transactions publicly visible and apparent. Unfortunately, this assumes that those responsible for thwarting money laundering and tax fraud have the financial, technical, and technological resources to do that on a mass scale -- and in most cases, they simply do not. In reading recent conversations of Mandarin-speaking crypto fraud actors on platforms like Telegram and WeChat, the knowledge and capability gap is striking -- and it is readily apparent to the bad guys. They know that the regulatory and law enforcement agencies are hopelessly outgunned when it comes to crypto, and indeed they are openly laughing about it. More on this soon... #cryptofraud #fraudprevention #cryptocurrency #threatintel #cyberintel #identityfraud #identitytheft #phishing #web3 #moneylaundering #taxfraud

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🚨 Crypto Startups: Avoid SEC Enforcement with These Key Compliance Steps! 🚨 In the wake of the SEC’s aggressive enforcement actions, like the recent case against eToro USA LLC, it's clear that crypto startups need to focus on compliance before they scale. Waiting until you've launched or gained traction could expose you to serious legal risks. 🚫 Key takeaways for crypto founders: 1️⃣ Evaluate Your Token: Could it be classified as a security? If so, you must comply with U.S. securities laws. 2️⃣ Register or Seek Exemptions: If you’re offering securities, you need to register with the SEC or find an applicable exemption. Don’t assume non-registration is an option just because you’re in crypto. 3️⃣ Broker-Dealer and Custody Rules: If you act as an intermediary or custodian of crypto assets, you must follow strict SEC regulations. 4️⃣ Full Disclosure is Critical: Transparent and accurate disclosures about your operations and risks are non-negotiable. 🔑 Proactive compliance is key. Address legal concerns from day one, not after you’ve built your platform, to avoid costly SEC penalties. Learn more about how your crypto startup can avoid SEC enforcement in my latest blog post. Compliance starts before you launch! 🚀 #Crypto #Startups #Compliance #FinTech #SEC #DigitalAssets #Blockchain #CryptoRegulations #eToro #LegalTech #CryptoLaw #BlockchainStartups #SECEnforcement 👉 Read more: https://zurl.co/9bDW

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🛑 Federal district court strikes down the #FTC #noncompete ban. The court, in siding with plaintiffs, concluded that the FTC exceeded its statutory authority in promulgating the non-compete rule and said that the rule is arbitrary and capricious under 5 U.S.C. § 706 (APA). As for relief/remedy, the court quoted 5th Circuit precedent saying that setting aside agency action under Section 706 has "'nationwide effect,' is 'not party-restricted,' and 'affects persons in all judicial districts equally.'" Thus, the rule "shall not be enforced or otherwise take effect on September 4, 2024." In response, it is reported that the FTC spokesperson said "We are seriously considering a potential appeal, and today's decision does not prevent the FTC from addressing noncompetes through case-by-base enforcement actions." Notably, when the rule was published in April, I wrote an article (first appeared in Washington Technology) about the potential impact of the non-compete ban in the #govcon space: "With the FTC's Looming Non-Compete Ban Agencies Should Rethink Key Personnel Requirements" 👉 https://lnkd.in/eGdJ8Q_6 🤷‍♂️ I guess there's no longer a need for agencies to rethink #keypersonnel requirements... or is there? 🤔 #law #legal #govconlaw ______ Hi, I’m Josh. I write about #govcon, #cyber, #bidprotests, and other interesting topics. Follow me and hit my 🔔 to never miss a post. And be sure to follow my blog GovConJudicata for the latest news, insights, and legal analysis in the government contracting space. #govconjudicata

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Say what you want about the media landscape in the US, but the NYT sure knows how to get perfecto CFIUS analysis on short notice. The expansion of covered military installations today is a pretty linear policy reaction to the vanishingly small impact the real estate regs had in their original form. J. Philip Ludvigson #cfius Biden Administration Rule Would Increase Authority to Block Foreign Deals https://lnkd.in/ez5Zjxy9

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The SEC's lawsuit against Hex is raising eyebrows in the crypto world. The crux of the issue? The very nature of Hex itself. The SEC claims Hex is both a security (requiring registration) and an entity (potentially liable for wrongdoing). This case highlights the ongoing challenge of regulating cryptocurrency. Legal experts on both sides of the issue have pointed out the potential confusion surrounding assets that could be seen as a security, currency, and even an entity. #CryptoRegulation #SEC #Blockchain #DeFi #TheFutureofFinance

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I find Michael Hsu, Acting Comptroller of the Currency, to be one of the most interesting financial regulators to listen to. (Shout out to Hsu's 2022 "Don't Chase" speech on FOMO in the Fintech world. https://lnkd.in/eKxH8nRR). Hsu testified today on the Hill, https://lnkd.in/eeYuzC47, and his remarks contained a few nuggets: ▪ You can see the effect of the CFPB's influence in comments on addressing fairness and discrimination, overdraft and insufficient funds fees, and financial inclusion. ▪ Regulators are like a dog with a bone on third party management issues in bank-fintech relationships. ▪ There has been a "notable increase in the number of generative AI pilots" at larger banks. Talk about FOMO . . . ▪ Hsu is not above a gratuitous dig at the crypto industry. In referencing tokenization initiatives, he said: "In contrast to crypto, tokenization is driven by solving real-world settlement problems and can be developed in a safe, sound, fair, and compliant manner." Ouch. 💥 #fintech #bankfintechpartnerships #regulatorycompliance

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🤔 Thoughts on Proposed US Rule to Limit Access to Personal Data by Foreign Adversaries Today, the U.S. Department of Justice proposed a new regulation to limit access to the sensitive data of Americans by foreign adversaries such as China and Russia. The regulation builds on President Biden's earlier efforts and will be open for public comment. I recall warning Congress after the 2014 U.S. Office of Personnel Management (OPM) data breach that the data protection world had changed. The primary concern was no longer the commercial exploitation of personal data by large companies or the criminal use of personal data by identity thieves. National security was now a key concern. And the threat was real. I urged Congress to enact a comprehensive privacy law, establish a data protection agency, and ratify the international privacy convention. A decade later, none of these things have happened. While I respect the efforts of the Biden-Harris administration to advance privacy protections across federal agencies and to tackle new issues such as AI, my concern today is that the DOJ strategy will not be effective. Rather than trying to limit data flows to certain countries -- an almost impossible task considering also the ongoing threat of data breaches -- the DOJ should emphasize data minimization and data deletion across all record systems containing personal data. And both political parties should work together for legislation that centers data minimization as a primary goal for data protection. State Attorney Generals (the Rs and the Ds) understand this. It is the reason you see increasing focus on data minimization, and also Tik-Tok, in many of the consumer complaints now being pursued. ➡️ A concrete suggestion for the next Congress - revisit the Privacy Act of 1974 with the goal of reducing the amount of personal data collected by federal agencies. And create a data protection agency. ➡️ A concrete suggestion for privacy litigators - continue to press the claim of a Constitutional right for informational self-determination that could limit the collection of personal data by the government. The Supreme Court rejected this claim when we made the argument in NASA v. Nelson (US 2012). Perhaps now they will reconsider. The personal data of the Justices, their staff, and family members was obtained by foreign adversaries in the 2014 OPM data breach. #DataProtection #PrivacyAct #NationalSecurity #DataMinimization Supreme Court of the U.S. Center for AI and Digital Policy Georgetown University Law Center

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So the USPTO is ending their After Final Consideration Pilot Program 2.0, or the AFCP as we lovingly call it (unless we're speaking quickly in which case it's the ACFCFPC). The last day to submit a request for participation under the program is December 14, 2024. 𝙒𝙝𝙞𝙘𝙝 𝙞𝙨 𝙖 𝙎𝙖𝙩𝙪𝙧𝙙𝙖𝙮. 35 USC 22(b) says that "when the… last day, for taking any action… in the United States Patent and Trademark Office falls on Saturday,… the action may be taken… on the next succeeding secular or business day." Does this apply to the last day to submit a request for the AFCP? Looks like it, especially if you take "any action" at face value, but you could probably make a case that it doesn't. Which means there's going to be an issue. Someone is literally going to make a federal case over this question. The wise thing for the USPTO to do at this point (since they didn't use up any wisdom by consulting a calendar ahead of time) would be to extend the deadline until the following Monday. There's nothing special about the 14ᵗʰ that can't wait until the 16ᵗʰ. Of course, as usual nobody who can do anything about it asked me, so I wouldn't hold my breath. #patentNerdTalk

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