Lessons from the downfall of a $150M crowdfunded experiment in decentralized governance

From: R Street

by . TechDirt

Hype around blockchain has risen to an all-time high. A technology once perceived to be the realm of crypto-anarchists and drug dealers has gained increasing popular recognition for its revolutionary potential, drawing billions in venture-capital investment by the world’s leading financial institutions and technology companies.

Regulators, rather than treating blockchain platforms (such as Bitcoin or Ethereum) and other “distributed ledgers” merely as tools of illicit dark markets, are beginning to look at frameworks to regulate and incorporate this important technology into traditional commerce.

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SEC Steps Up Cybersecurity Enforcement with $1 Million Fine Against Morgan Stanley

From: The National Law Review

Article By Jeff Kern Christopher J. Bosch

The Security and Exchange Commission’s (“SEC”) recent $1 million settlement with Morgan Stanley Smith Barney LLC (“MSSB”) marked a turning point in the agency’s focus on cybersecurity issues, an area that the agency has proclaimed a top enforcement priority in recent years.  The MSSB settlement addressed various cybersecurity deficiencies that led to the misappropriation of sensitive data for approximately 730,000 customer accounts.

New Source of Federal Dysfunctional Database Privacy Leak Concerns: CFPB

Editor’s Note: For more information on federal database failures, see The Report of the Administrative Conference of the United States (ACUS) on the Oversight of Federal Databases.

From: National Mortgage News

CFPB Must Address Lenders’ HMDA Data Privacy Concerns


The implementation date of the Consumer Financial Protection Bureau’s final Home Mortgage Disclosure Act Rule is fast approaching and the mortgage industry still has not received any answers in regard to their data privacy concerns.


Is Bitcoin Money? Florida Judge to Decide

From: American Banker

By Lalita Clozel

WASHINGTON — Whether bitcoin is actual currency is at the forefront of a first-of-its-kind money-laundering case in Florida to be decided Friday.

In February 2014, Michel Espinoza was arrested in a Miami Beach motel for agreeing to sell $30,000 worth of bitcoin to an undercover police officer he had met on an exchange site called LocalBitcoins.com.

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How Does the FTC Determine the “Reasonableness” of Corporate Data Security? Is it an Arbitrary Standard?

From: FedScoop

FTC closes 70 percent of data security investigations
The FTC’s investigations focus on measuring the “reasonableness” of a company’s data security.

By Jeremy Snow

The Federal Trade Commission closes 70 percent of all formal security investigations it opens on average, FTC Commissioner Maureen Ohlhausen said Tuesday.

Ohlhausen gave her insight on FTC’s previous private sector security breaches that caused stolen identities and data during a Heritage Foundation discussion on federal online data security regulation, and how the commission decides when it’s necessary to open an investigation.

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