Welcome to a new (and noticeably colder) month and the latest edition of Cabinet News and Views. Our team has had another very busy week examining regulatory activity on hot topics in artificial intelligence, climate change, cryptocurrency and personal data, as well as the ongoing dialogue on Basel 3.1.
In this issue, we start with the leftovers we promised last week (just in time for the colder temperatures). I provide an update on the U.S. interagency climate-related risk management principles for large financial institutions, which now include clarification on their applicability to foreign banks and the different roles of an institution’s board of directors versus its management. My colleague in Washington, D.C., Mercedes Kelley Tunstall, and I provide another look at the Federal Reserve’s debit interchange proposal. Mercedes offers two more reports this week, including a second installment of her analysis on the CFPB’s proposed rule on personal data financial rights; and on Monday’s announcement that the Biden administration has issued an Executive Order regarding artificial intelligence. Also from Monday’s news is a report by my colleagues, Mike Gambro and Maurine Bartlett, on the SEC’s new order exempting brokers and dealers from certain review and recordkeeping requirements related to fixed income securities.
Reporting from London, my colleague, Alix Prentice, discusses two topics. She provides an analysis of the latest UK PRA discussion paper covering securitization capital requirements in the context of Basel 3.1. Alix also shares an update from the UK Treasury on its plans to facilitate and regulate the use of fiat-backed stablecoins in the country’s payment chains. Finally, my colleagues on our firm’s global litigation team, Jason Halper and Timbre Shriver, offer an in-depth look into the U.S. Treasurer Department’s guiding principles for private sector financial institutions that have made net-zero commitments.
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Daniel Meade
Partner and Editor, Cabinet News and Views