Welcome to this issue of Innovating Payments Top 3 News Headlines. According to PYMNTS.com, U.S. President Joe Biden may issue an executive order on crypto assets as early as this week. "Biden's executive order may be the trigger for several regulators and lawmakers to advance crypto-asset regulations," contends the publication. Also in the news, the Federal Trade Commission data reported receiving 2.8 million fraud reports from consumers in 2021, an increase of more than 70 percent over the previous year. And Governor Lael Brainard, at the U.S. Monetary Policy Forum in New York, New York, emphasized that "it is important to prepare for the financial system of the future and not limit our thinking to the financial system today."
Read on to learn more.
1. Biden's Executive Order May Trigger Crypto Regulatory Spree (PYMNTS.com)
According to reports, U.S. President Joe Biden may issue an executive order on crypto assets as early as this week. Plans for an executive order were first reported in January with the expectation of a February release. The executive order reportedly will direct a wide range of government agencies to study cryptocurrency and central bank digital currency (CBDC) to design a comprehensive strategy. Some of the agencies that will likely be asked to prepare a report include the Departments of Treasury, State, Justice and Homeland Security. (Read more.)
2. New Data Shows FTC Received 2.8 Million Fraud Reports from Consumers in 2021 (ftc.gov)
Newly released Federal Trade Commission data shows that consumers reported losing more than $5.8 billion to fraud in 2021, an increase of more than 70 percent over the previous year. The FTC received fraud reports from more than 2.8 million consumers last year, with the most commonly reported category once again being imposter scams, followed by online shopping scams. Prizes, sweepstakes, and lotteries; internet services; and business and job opportunities rounded out the top five fraud categories. (Read more.)
3. Preparing for the Financial System of the Future (federalreserve.gov)
The financial system is undergoing fast-moving changes associated with digitalization and decentralization. Some of these innovations hold considerable promise to reduce transaction costs and frictions, increase competition, and improve financial inclusion, but there are also potential risks. With technology driving profound change, it is important we prepare for the financial system of the future and not limit our thinking to the financial system of today. (Read more.)
What questions does your financial institution have about cryptocurrency? With consumer fraud up more than 70 percent in 2021 over the previous year, how can you support your customers in the fight against fraud? Finally, what steps are your financial institution taking to prepare for the future financial system?
Check back in two weeks for our next issue, which will highlight the industry's most need-to-know developments. Visit us online at Innovating Payments for updates on these stories and more.
AUTHOR: Joe Casali, AAP, NCP
Executive Vice President
As the EVP of Payments Innovation for NEACH, Joe focuses on exploring innovative solutions and technologies that will help position members for success, both now and in the future. Connect with Joe to read more of his blogs, articles, and posts.