Israel Securities Authority Turns to Blockchain for Improving Cybersecurity

Editor’s Note: Cross-posted from FISMA News.

From: cointelegraph

By Marie Huillet

The Israel Securities Authority (ISA) has started to use blockchain to improve the cybersecurity of its messaging system, online newspaper Times of Israel reports today, October 3.

The government regulator has reportedly embedded the technology into a system dubbed “Yael,” used to deliver messages and other information to entities that fall under ISA oversight.

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Federal Banking Regulators Join Forces on Supervisory Guidance

From: Lexology

Richard E. Gottlieb and Charles E. Washburn, Jr. | Manatt Phelps & Phillips LLP

US GAO: Community Banks: Effect of Regulations on Small Business Lending and Institutions Appears Modest, but Lending Data Could Be Improved


GAO-18-312: Published: Aug 6, 2018. Publicly Released: Sep 5, 2018.

Small businesses often rely on community banks for credit. Since the financial crisis, federal regulators have implemented new banking regulations, which could create difficulties for small businesses seeking loans from their local banks.

We found that the economic environment and competition, rather than regulatory burden, explained most of the trends in this lending from 2001-2017. We also found that community banks’ lending to small businesses has largely recovered since the crisis. However, the data that these banks report to federal regulators is incomplete, so we recommended that federal regulators evaluate how they collect this data.

Regulations come under review as memories fade

From: Pensions & Investments



Finalizing updates

Five agencies are finalizing updates to the Volcker rule provision of Dodd-Frank, which prohibits federally backed financial institutions from engaging in proprietary trading or having interests in private equity or hedge funds. In June, the three Republican SEC commissioners, including Chairman Jay Clayton, voted to proceed with changes that include tailoring rules to a bank’s size, instead of using a one-size-fits-all approach, and clarifying exemptions for banks’ proprietary trading activity.


Treasury Releases Report on Nonbank Institutions, Fintech, and Innovation

From: National Law Review

ARTICLE BY Weiss Nusraty David A. Stein | Covington & Burling LLP

On July 31, 2018, the U.S. Department of the Treasury released a reportidentifying numerous recommendations intended to promote constructive activities by nonbank financial institutions, embrace financial technology (“fintech”), and encourage innovation.

This is the fourth and final report issued by Treasury pursuant to Executive Order 13772, which established certain Core Principles designed to inform the manner in which the Trump Administration regulates the U.S. financial system.  Among other things, the Core Principles include:  (i) empower Americans to make independent financial decisions and informed choices; (ii) prevent taxpayer-funded bailouts; (iii) foster economic growth and vibrant financial markets through more rigorous regulatory impact analysis; (iv) make regulation efficient, effective, and appropriately tailored; and (v) restore public accountability within federal financial regulatory agencies and rationalize the federal financial regulatory framework.