Expert Analysis

• Series

  NY Banking Brief: All The Notable Legal Updates In Q3

  

  Several developments from New York financial services regulators in the third quarter reflect a common theme — regulators are increasingly seeking to apply established supervisory expectations to newer market participants and emerging financial products, say attorneys at Blank Rome.

• Prediction Market Case Tests Novel Insider Trading Theory

  

  The government's argument in its case against a soldier accused of using classified information to bet on Venezuelan President Nicolás Maduro's capture would represent a sea change in how insider trading wire fraud has been prosecuted for decades, says Alex Blanchard at Holland & Knight.

• Series

  Mich. Banking Brief: All The Notable Legal Updates In Q3

  

  We are at an inflection point for Michigan financial services law, with a state Supreme Court decision recently overruling more than 25 years of precedent on the Michigan Consumer Protection Act, and pending legislation that could significantly shift the regulatory landscape, say attorneys and advisers at Dykema.

• Opinion

  CFTC's New Award Policy Punishes Whistleblower Success

  

  The U.S. Commodity Futures Trading Commission recently capped four whistleblower awards because it considered them too large, arguing that it could lead to frivolous reporting, but the move instead penalizes the program for its own success and flies in the face of the framework enacted by Congress, say attorneys at Whistleblower Partners.

• Testing AI's Promise For Large-Scale Document Review

  

  Our document-review comparison of attorneys' responsiveness and issue coding decisions versus predictions generated by artificial intelligence across 1,600 documents suggests that these tools can offer a reasonable and reliable basis for improved discovery workflows, provided lawyers understand where guardrails are needed, say attorneys at Redgrave.

• What's Next For Prediction Markets If States Win At High Court

  

  While the Supreme Court hasn't taken up a prediction market case yet, a high court win for the states in their quest to regulate the exchanges would likely mean a wave of state legislature bills and regulatory guidance arriving on different timelines, rather than a single uniform transition, says Howard Herndon at Bradley Arant.

• FDIC Standards Body Could Ease Bank Vendor Due Diligence

  

  The Federal Deposit Insurance Corp.'s recently proposed standards body for bank vendors could streamline due diligence and onboarding, but banks and their third-party service providers alike should still monitor open questions around oversight, certification costs and governance, say attorneys at Clark Hill.

• AI Meeting Recaps Pose New Discovery And Privilege Risks

  

  The New York City Bar Association’s recent ethics opinion, cautioning attorneys not to record nonclient conversations with artificial intelligence tools, reflects an emerging view that AI meeting recaps are now a distinct business record category, meaning counsel should set meeting-level controls and apply framework-level updates, says William Wright at Faegre Drinker.

• What Comes Next For Digital Asset Regs After Clarity Act Flop

  

  After the U.S. Senate recently blocked the Digital Asset Market Clarity Act, agency rulemaking could still offer a near-term remedy, and companies meanwhile should monitor the existing framework assembled from enforcement precedent and case law in the absence of a purpose-built statute, say attorneys at Ropes & Gray.

• Negotiating The Scope Of The Stablecoin Customer ID Rule

  

  Though comments on bank regulators’ proposed rule for stablecoin issuers under the Genius Act generally agree that oversight would help prevent illicit activity, agencies must reconcile disagreement over whether to extend customer identification requirements from issuers' primary-market relationships to secondary-markets activity, say attorneys at Ballard Spahr.

• Series

  Playing Bid Whist Makes Me A Better Lawyer

  

  As a child, I viewed bid whist as a family tradition and a source of friendly card game competition, but as a lawyer, I see it as a tool that has helped me cultivate skills like communication, teamwork, risk assessment and composure, says Keyonn Pope at Riley Safer.

• AML Takes Center Stage In Financial Crime Enforcement

  

  Financial Crimes Enforcement Network actions, including its recent anti-money-laundering penalty against UBS, signal that companies should align sanctions and anti-corruption controls with documented risk assessments, quickly escalate and investigate red flags, and test remediation as enforcement intensifies, say attorneys at Bass Berry.

• Banks Should Stay Disciplined As OCC, FDIC Ease Oversight

  

  Despite a newly issued Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp. rule that narrows the range of conduct that regulators may require institutions to remediate, prudent risk management suggests banks should still document how they arrive at their risk determinations, say attorneys at Crowell & Moring.

• Opinion

  Calif. Bill Goes Too Far In Trying To Regulate Attorney AI Use

  

  California’s first-in-the-nation act regulating how attorneys and arbitrators use generative artificial intelligence will likely soon become law, but read broadly, the provisions may dissuade lawyers from employing AI at all, thereby depriving them of key work tools, says Joshua Wurtzel at Schlam Stone.

• The Preemption Gap In Prediction Market High Court Petitions

  

  The Supreme Court is considering three certiorari petitions following a split in prediction market litigation between the Third and Ninth circuits, but one of the petitions would not allow the court to reach the express preemption question, which would leave the dispute half-resolved, says Jordan Garman at Withers.