All articles tagged with #financeregulation
The Securities and Exchange Commission (SEC) has issued a warning against "AI washing," cautioning financial firms against overstating their use of artificial intelligence in their products and services. The SEC emphasized the importance of accurate and transparent disclosures regarding the use of AI and machine learning in financial technology, signaling increased scrutiny in this area.
The U.S. Securities and Exchange Commission (SEC) is set to vote on March 6 on whether to implement rules requiring U.S.-listed companies to disclose climate-related risks, including greenhouse gas emissions and transition spending. The proposed regulations, part of President Biden's climate change agenda, have faced pushback from companies and Republican officials, leading to potential legal challenges. The SEC has made adjustments to the initial proposal, including dropping the requirement for supply chain emissions disclosure and softening requirements for direct emissions reporting. If adopted, the rules could represent a significant overhaul of U.S. disclosure requirements and a key legacy for SEC Chair Gary Gensler.
Superintendent Adrienne A. Harris of the New York State Department of Financial Services announced that Gemini Trust Company, LLC has committed to returning at least $1.1 billion to its Earn program customers through a bankruptcy proceeding. Gemini will also pay a $37 million penalty for compliance failures related to the program, which allowed customers to loan virtual currency to an unregulated third party. The company's failure to conduct due diligence on the third party led to significant financial harm for over 200,000 customers, and the Department's investigation also revealed unsafe and unsound practices within Gemini.
The U.S. SEC has expanded its dealer rule to encompass a wider range of financial activities, including those involving crypto securities, with the new framework set to take effect in April next year. This move could have significant implications for the digital assets industry, particularly in decentralized finance (DeFi), as it requires dealers to register with the SEC and comply with securities laws. The expansion has drawn objections from industry insiders, including those in DeFi, who argue that the new rules are impractical and hostile to innovation. The crypto industry has been engaged in legal battles with the SEC over the classification of cryptocurrencies as securities, and the outcome could have far-reaching effects on which firms are considered dealers under the new regulatory requirements.