Kennyhertz Perry Client Alert: Enforcement Powers of the CFPB

Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the Act) established the Consumer Financial Protection Bureau (CFPB) and authorizes it to supervise certain consumer financial services companies and large depository institutions and their affiliates for consumer protection purposes. The CFPB has been charged with implementing and examination for compliance with Federal consumer finance law.

The CFPB also has extensive authorities to not only investigate violations of federal consumer protection laws but also implement broad enforcement relief.

Perry Speaks with Law360 on CFTC Enforcement Actions Returning to Administrative Court

In an interview with Law360, former CFTC senior trial attorney and Kennyhertz Perry partner Braden Perry discussed the CFTC’s recent decision to take enforcement proceedings to administrative court. Citing lack of resources, the CFTC claims bringing enforcement actions in administrative courts would “allow the commission to develop its expertise and the powers given to it in 2010 by Dodd-Frank.”  Perry described it as a “setback” for subjects of CFTC investigations and the lack of resources at a federally funded agency “shouldn’t be the reason for a policy change that eliminates what a defendant might see as a fair and full process.”

A Big Week for Bitcoin

pressLast week, FinCEN issued two administrative rulings clarifying that certain Bitcoin participants do not constitute money service businesses (MSBs) under the BSA.  The rulings furthered the guidance issued by FinCEN last March, which excluded from the definition of MSB users that obtain convertible virtual currency and use such convertible virtual currency to purchase real or virtual goods or services. In the Guidance, FinCEN established Users are not MSBs because they are not engaged in money transmission services.