Tag:Journal of Regulatory Compliance
Stablecoins III: The Stablecoin TRUST Act of 2022
On Wednesday, April 6, 2022, Senator Pat Toomey of Virginia released a discussion draft of the Stablecoin Transparency of Reserves and Uniform Safe Transactions Act of 2022, also known as the Stablecoin TRUST Act (“the TRUST Act”). This new legislation, introduced in the United States Senate, aims to create a three-pronged regulatory framework for the issuers of stablecoins in the United States. Like similar bills on the topic of stablecoin, such as the Stablecoin Innovation and Protection Act of 2022, the bill is short at only fourteen pages long. Where the bills differ is immediately noted in the more robust definitions section of the TRUST Act which lays out a six-part definition of “payment stablecoins” that covers the design intent of a stablecoin, who can issue a stablecoin, whether the holder can inherently earn interest, and where the stablecoin transactions are recorded.
Cracking Down on Ghost Guns
In an effort to reduce gun violence, President Biden has announced tighter regulations on the sale of “ghost guns.” Ghost guns are guns sold in several pieces and subsequently assembled by the buyer. Historically, gun kits have not been required to have serial numbers and their sales have not required background checks, which has made them far easier to acquire than normal firearms, despite the final product being substantially the same.
Delivery Drones Are Arriving
Using a machine to replace human workers is a practice that continues to grow in the electronic age. The logic of drone delivery is to provide a sustainable option for the last-minute shopper or for the caffeinato that wants to order coffee online and receive it at their doorstep within minutes. For many years, drone deliveries have just been mere speculation based on unreliable technology utilized in the drones. However, it seems that technology has advanced once again. Drone companies have recently been cleared to expand their operations across the United States, in cities and rural areas as the technology becomes more reliable and faster. But how soon should we be able to order our daily necessities and luxurious items straight to our doorstep via drone? That all depends on federal regulation.
Is this JUUL’s Final Goodbye?
On June 23rd, 2022, the U.S. Food and Drug Administration (FDA) announced that JUUL Labs, Inc., the notorious e-cigarette manufacturer, is ordered to cease distribution of their products in the United States. Since the company’s rise, one of the biggest pushes towards restricting JUUL products in stores across the nation has been fueled by discouraging youth vaping and the uncertainty regarding future health implications. The National Youth Tobacco Survey found that in 2021, approximately two million middle and high school students have reported using e-cigarettes. Meanwhile, more studies are surfacing regarding the adverse health effects that nicotine and e-cigarette products may have.
Tick Tock for TikTok as Kids Addiction to App Grows
In June of this year, a new California bill, which allows social media companies to be sued by state government attorneys for having features that contribute to the addiction of children to their apps, cleared the state Senate. The bill was originally brought to California’s state assembly as one that would permit parents to sue social media giants for up to $25,000 per violation but was later amended after lobbying from business and tech-industry groups. The worry that social media is able to exploit children through ads, notifications, and other features in the design that are promoting addiction has amplified since the premiere of 2020 documentary, “The Social Dilemma.” Since then, the warning that regulation was looming has quickly turned into actual movement towards regulating the actions of social media companies. The bill has since failed, a disappointing end to an initiative that could have made a real change towards keeping social media giants in check.
DOJ Renews Efforts to Prosecute White-Collar Crime
In October of 2021, the Department of Justice (“DOJ”) announced it would ramp up its enforcement against corporate repeat offenders of white-collar crimes and prioritize action against individual actors to promote accountability. The new measures implemented permit the DOJ to consider all prior wrongdoing by a corporation when deciding how to resolve a new investigation. Leniency programs of the past will not be extended to wrongdoers unless all believed participants, whether employees or executives, are disclosed. There has also been a shift from financial penalties to probationary settlements, which require companies not only to admit fault and pay fines but also to improve their monitoring of employees to deter crime. This may require outside monitoring to verify compliance, which can be burdensome and expensive.
Website Accessibility: What to Know About the ADA’s New Guide
In the recent years, there has been a significant increase in website accessibility lawsuits where plaintiffs claim that they cannot access websites because they are incompatible with assistive technology. Particularly, the number of Americans with Disabilities Act (ADA) Title III website accessibility lawsuits filed in federal courts in 2021 jumped 14% over 2020. This March, the U.S. Department of Justice published new guidance on website accessibility under ADA, however, businesses still struggle with understanding their compliance responsibilities.
PATCHing Health Technologies: Medical Device Security is the Target in Congress’ Aim
Conversations about the privacy and security of health information systems and patient data are ongoing, and frequently front-page news. But what about healthcare’s “internet of things”? More specifically, the web of wearable or implantable medical devices, and the applications that go along with them, which collect and transmit health information? The Food and Drug Administration (FDA) is charged with approving medical devices for patient use in a clinical setting, such as pacemakers. These devices require FDA approval and cannot be altered after receiving that approval. Additionally, an upgrade to an approved device could result in the need for an entirely new FDA approval, making device’s security essentially obsolete soon after its deployment. The inability to upgrade device security poses a unique cybersecurity risk. And this risk is one that Congress seems poised to take on.
Chicago Aims to Abolish Sexual Harassment in the Workplace
Sexual harassment in the workplace is prohibited in Chicago. To further instill this message, in April 2022, Mayor Lightfoot and the Commission on Human Relations amended the sexual harassment laws (Human Rights Ordinance) to provide sharpened tools to employers and employees for preventing sexual harassment. These amendments strengthened the existing laws in strictly enforcing zero tolerance of violence and harassment in the workplace through written employment policies, posters, and training. Starting July 1, 2022, strict compliance with these amendments became the standard throughout Chicago.
What Does The “ENABLERS Act” Mean for Attorney Regulation?
The Financial Crimes Enforcement Network (FinCEN) is a bureau of the U.S. Department of Treasury committed to safeguarding the financial system by detecting and preventing money laundering, the financing of terrorism, and other illicit activity since the 1970s. The Bank Secrecy Act (BSA) expanded the definition of “financial institution.” The ENABLERS Act (Act) is the latest proposed amendment that seeks to expand the provisions of the BSA to several different professions, such as lawyers, trust companies, investment advisors, accountants, public relations firms, and art dealers, amongst others. Should this amendment pass, it will be the most significant money laundering reform yet. It will expand its reach by requiring these financial service providers to adopt anti-money laundering safeguards to close the loophole in the U.S. anti-money laundering system. The safeguard will require these professionals to help prevent and report cases of money laundering by implementing due diligence rules in their practice to ensure that the money entering the system is not “dirty.” This is currently not required of lawyers or any of these other professions.