Latest news with #Zelle
NBC News
5 days ago
- Business
- NBC News
Investors cheer new crypto law while critics warn of potential for crisis
After some political wrangling, three crypto bills favored by President Donald Trump received key support on Capitol Hill this week, with one of them signed into law on Friday afternoon. Flush with enthusiasm amid the bills' imminent passage, investors have lifted the three major crypto tokens — bitcoin, ether and ripple — to all-time highs. Bitcoin is now the best-performing major asset in the world this year, having climbed nearly 30%, outpacing gold and the tech-heavy Nasdaq Composite stock index. The effects of the bills are not immediate, but they will fuel crypto's evolution from a niche, fringe corner of the economy into the mainstream — for better or much, much worse — depending on whom you ask. The GENIUS Act The bill signed into law Friday, and the one that could usher in the most significant changes, is the GENIUS Act. It paves the way for private firms to issue what are known as stablecoins, which are privately issued digital money — think Toys R'US' 'Geoffreybucks' for the 21st century. (The 'stable' part of stablecoin comes from the idea that the tokens' value would always be equivalent to $1.) While some firms have already been issuing stablecoins, they'd been operating in a legal gray zone. The GENIUS Act lays out specific requirements for companies who issue stablecoins, like complying with anti-money laundering laws and monitoring and reporting suspicious activity. In the eyes of many consumer protection advocates, the requirements are grossly inadequate. 'The reason you would never recommend grandmother use a stablecoin is she would have to give away a dollar that's protected by the federal government and deposit insurance, and which comes with a ton of consumer protections, and which pays interest in her banking account, in exchange for a stablecoin that doesn't have any of those things,' said Corey Frayer, director of Investor Protection for the Consumer Federation of America. Most entities now considering tapping into stablecoins amid the GENIUS Act's passage say they would first use them for largely 'back-end' purposes, like reducing fees paid by merchants to credit card companies or more easily converting currencies from cross-border payments. Mainstream financial institutions are interested. The Wall Street Journal has reported several large U.S. banks, along with the payments platform Zelle, are in talks about issuing a joint stablecoin. While Zelle is free for its users, the cost of running it shows up elsewhere in the form of other fees charged by banks. There's little dispute about the potential of stablecoins to make back-end operations cheaper and more cost effective. Company-specific stablecoins could also allow for specially designed offers or discounts on their products if they pay using the company's token. The controversy over them comes in three parts. The first is Trump and his family's interest in stablecoins — namely the one issued in March by World Liberty Financial. Launched in 2024, World Liberty is majority-owned by the Trump Organization, though no family member is a director and the president has previously said he is not involved in active management of the firm. While the World Liberty stablecoin has yet to gain any kind of mainstream traction, it's already been selected to back a $2 billion investment by Abu Dhabi in crypto firm Binance. World Liberty's co-founder is Zack Witkoff, son of Trump's Middle East envoy Steve Witkoff. The Trump family has made approximately $500 million from World Liberty since the platform was launched, according to Reuters calculations. Beyond Trump's potential conflict of interest, the GENIUS Act raises the prospect of a proliferation of privately issued stablecoins, which could force consumers to use different currencies at each place they shop at, instead of just the plain old dollar. The potential headache could be solved through a centralized app, but it would likely mean consumers would have to create their own crypto wallets — a cumbersome task that also raises the potential for hacks. The second, more profound risk comes from the fact that stablecoin issuers essentially become their own banks. According to Frayer, the GENIUS Act essentially allows stablecoin issuers to bypass most regular banking protections and police themselves — something he says has never led to good outcomes. Frayer told NBC News that the crypto industry is rapidly forming increasingly centralized entities while vaulting headlong into the same risks that led to the financial crashes of 1929 and 2008. 'The reason that banking insurance and consumer protections exist is because of the Great Depression and the Great Recession,' he said. 'If we go back to a system with a whole bunch of unregulated banks being allowed to issue stablecoins, we will end up with another financial crisis.' Advocacy publication Consumer Reports also opposed the legislation, saying it fails to protect consumers and the economy from the risks posed by stablecoins. 'As stablecoins become more intertwined with the mainstream banking system, consumers and businesses could be exposed to higher levels of risk, which may lead to insolvencies and federal bailouts,' Delicia Hand, senior director for digital marketplace at Consumer Reports, said in a statement. In a statement, the head of the Blockchain Association, a trade group, praised the GENIUS Act for offering 'tailored' rules for stablecoins. 'This marks real momentum toward regulatory clarity that protects consumers, supports innovation, and reinforces the strength of the U.S. dollar in the digital economy,' CEO Summer Mersinger said. The CLARITY Act The two other bills under consideration are more statutory in nature — though one has major implications for the president's personal businesses. The CLARITY Act, now under consideration by the Senate after receiving House approval this week, is designed to sort tokens into categories that more clearly establish whether they are to be regulated by the Securities and Exchange Commission or the Commodity Futures Trading Commission — with most falling into the latter category. That has upset some Democrats and consumer advocates who say it could turn into a giveaway to Trump's increasingly crypto-oriented business interests, by allowing them to bypass most standard securities rules in favor of less stringent commodities regulations. It also gets World Liberty off the hook from facing regulatory scrutiny for its other digital token, known as WLFI. The World Liberty tokens had yet to be designated as securities by the SEC — and would no longer have to if the bill were to become law, experts say. 'Trump-affiliated World Liberty Financial would largely be exempt from regulatory oversight if this bill were to pass,' Americans for Financial Reform said in a statement. 'Memecoins, such the $TRUMP coin, which has garnered the Trump Organization hundreds of millions of dollars in sales fees even as most investors have lost money on the coin, would also be permanently exempt from regulatory oversight.' The bill nonetheless has garnered bipartisan support. 'For too long, the lack of clear guidance as to which cryptoasset type is governed by which agency has stifled development, investment, and responsible entrepreneurship,' Yuval Rooz, CEO and co-founder of Digital Asset, a blockchain firm, said in a statement. 'This bipartisan effort marks a turning point, recognizing the distinct nature of digital assets and establishing a framework that supports compliance, transparency where necessary, and market integrity. The Anti-CBDC Surveillance State Act The Anti-CBDC Surveillance State Act, which also passed the House this week and is now before the Senate, is largely the product of GOP warnings about the introduction of a digital token overseen by the Federal Reserve and the privacy concerns that could pose. The bill would ban the issuance of such tokens or their use for monetary policy. However, Fed officials have said the central bank has never been close to enacting such a currency. Other countries, dozens of other countries, as well as the European Union, have moved forward with issuing such tokens noting that they allow for faster transactions and make online financial tools more accessible. Still, the banking industry has also opposed the creation of a CBDC and has expressed support for the law. In a statement, the American Bankers Association said it 'believes strongly that a central bank digital currency (CBDC) is unnecessary in the United States and would present unacceptable risks and costs to the financial system.' 'Issuance of a CBDC would fundamentally change the relationship between citizens and the Federal Reserve, undermine the important role banks play in extending credit, exacerbate economic and liquidity crises, and impede the transmission of sound monetary policy,' it said.
Time of India
16-07-2025
- Business
- Time of India
Some big US banks plan to launch stablecoins, expecting crypto-friendly regulations
Some large U.S. lenders, including Bank of America and Citibank, are working on launching stablecoins at a time when the country is looking to adopt more crypto-friendly CEO Brian Moynihan said on Wednesday the bank is working on launching a stablecoin, and investors can expect the lender to move forward with it, without giving a a type of cryptocurrency designed to maintain a constant value, are usually pegged to a fiat currency such as the U.S. dollar and are commonly used by crypto traders to move funds between tokens."We feel both the industry and ourselves will have responses. We've done a lot of work," Moynihan, CEO of the second-largest U.S. bank, said."We are still trying to figure out how big or small it is, because in some places there are not big amounts of money movement. So you would expect us all to move, our company to move on that," Moynihan told analysts on a post-earnings conference said Bank of America was trying to understand client demand, which was not high currently, and would roll out a stablecoin at an appropriate time, likely in partnership with other players. He compared banks' interest in stablecoin with their adoption of peer-to-peer digital payments platforms such as Zelle and Venmo.U.S. President Donald Trump has promised to be the "crypto president," popularizing its mainstream use in the country. A series of crypto industry-friendly bills is expected to progress through Congress this week, paving the way for digital assets to potentially further integrate into traditional of the most notable is a bill that would establish a regulatory framework for stablecoins and is likely to advance to Trump's desk for banks are still awaiting legal clarity, Moynihan said, explaining why progress has been slower than some investors Stanley Chief Financial Officer Sharon Yeshaya said on Wednesday the bank was following stablecoin developments closely."We're looking both at the landscape, the uses, and the potential uses for our own client base. But, it really is a little early to tell, especially for the businesses we run versus businesses that you might see from competitors, on how a stablecoin would play in," she added. Citigroup CEO Jane Fraser also said the bank may issue a stablecoin to facilitate digital payments."We are looking at the issuance of a Citi stablecoin," she told analysts after reporting earnings on Tuesday. "This is a good opportunity for us."JPMorgan Chase CEO Jamie Dimon, who has been a vocal skeptic of bitcoin, said on Tuesday the bank will be involved in stablecoins, without giving details.
American Press
14-07-2025
- American Press
Sheriff: Scammers falsely claiming to represent bonding company
Special to the American Press Calcasieu Parish Sheriff Stitch Guillory is warning residents of a scam that is resurfacing in tje area involving scammers falsely claiming to represent a bonding company. The scammer contacts family members of incarcerated individuals claiming they can pay a lesser amount to bond their family member out of jail. The caller may provide a local address and phone number in an attempt to look legitimate. The caller may ask the victim to pay the fee using cryptocurrency or money transfer services, such as Zelle or Cash App. This is a scam. Sheriff wants to remind residents of a few tips to use to avoid becoming the victims of a scam: Resist the pressure to make an immediate decision. Verify any information by independently looking up the business and contacting them. Never send money based on a request made over the phone or in an e-mail. Trust your instincts, if something doesn't sound right hang up and report suspicious activity to local law enforcement. If you believe you have fallen victim to this scam, please contact the Calcasieu Parish Sheriff's Office at 491-3605.
Business Wire
12-07-2025
- Business
- Business Wire
Beach Cities Commercial Bank Announces Leadership Changes
IRVINE, Calif.--(BUSINESS WIRE)--Beach Cities Commercial Bank (OTCQB:BCCB) announced that President Jeffrey Redeker has separated from the Bank as of June 10, 2025. In addition, H. Kent Falk, Chief Executive Officer, resigned effective June 30, 2025. Bank Board of Directors Chairman Frank Ford and Bank Board of Directors Vice Chair Angela Bienert assumed oversight of the Bank through the Executive Oversight Committee, taking over the daily responsibilities previously held by Mr. Redeker and Mr. Falk. Effective June 18, 2025, the Executive Oversight Committee is composed of Mrs. Bienert and Bank Board Director Jim Riskas. They will continue to oversee the Bank pending hiring of a new President and Chief Executive Officer. Mrs. Bienert, Vice Chair of the Board of Directors, remarked, "Mr. Redeker and Mr. Falk have been instrumental in the Bank's vision and journey, having served for nearly two years as its founding members. They played key roles in launching the Bank. We extend our best wishes to both as they embark on their future endeavors.' Mrs. Bienert further stated that 'Our highly skilled workforce and experienced management team are confident that Beach Cities Commercial Bank will continue to deliver on its reputation for meeting and exceeding our customers' high standards for satisfying their loan, deposit, banking services and other financial needs. This team has delivered growth while continuing to invest in people, product development, and production capabilities, and the Bank is well positioned to further deliver value to its stakeholders. We are committed to providing our team with the resources they need to continue excelling and while we conduct a search for our next President and Chief Executive Officer." Corporate Overview Headquartered in Irvine, California, Beach Cities Commercial Bank is a community-based financial institution that provides a range of commercial banking products and services to the communities it serves. As of March 31, 2025, the Bank had total assets of $153.8 million. The Bank is a full-service commercial bank that provides business banking services in Los Angeles, Orange, San Diego and Riverside Counties. Bank services include: account analysis, commercial checking accounts, money market accounts, savings accounts, IOLTA, Online Banking, mobile banking, E-banking, treasury management, Zelle, business lines of credit, business term loans, equipment financing, commercial real estate financing, bridge financing, SBA loans/lines, California state loan guarantee loans, construction loans and other deposit and loan products. The Bank's headquarters office is 100 Progress, Suite 150, Irvine, California 92618, and it has a branch in Encinitas, California. The Bank's website address is FORWARD-LOOKING STATEMENT: This news release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements may be identified using words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "likely," "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar terms and phrases, including references to assumptions. Forward-looking statements are based upon various assumptions and analyses made by the Bank (which includes the Bank) considering management's experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements do not guarantee future performance and are subject to risks, uncertainties, and other factors (many of which are beyond the Bank's control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Accordingly, you should not place undue reliance on such statements. Factors that could affect the Bank's results include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Bank's control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may reduce interest margins; changes in deposit flows, loan demand or real estate values may adversely affect the business of the Bank; unanticipated or significant increases in loan losses; changes in accounting principles, policies or guidelines may cause the Bank's financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Bank's financial condition or results of operations; general economic conditions, either nationally or locally in some or all areas in which the Bank conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Bank currently anticipates; legislation or regulatory changes may adversely affect the Bank's business; technological changes may be more difficult or expensive than the Bank anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Bank anticipates; or litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Bank anticipates.
Yahoo
09-07-2025
- Business
- Yahoo
Warren demands Zelle scam update
This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. U.S. Senators Elizabeth Warren of Massachusetts and Richard Blumenthal of Connecticut and U.S. Rep. Maxine Waters of California sent letters — dated July 1 — to six of the seven banks that own Early Warning Services, the fintech company that operates Zelle, asking how they track fraud on the platform and what they are doing about it. A separate letter was sent to JPMorgan Chase, which announced in February that it would stop approving Zelle payments that originate on social media sites like Facebook. 'We write to request information regarding Bank of America's most recent efforts to protect consumers from scams and fraud on peer-to-peer (P2P) payment platforms, including Zelle,' the members of Congress, who are all Democrats, wrote in the letter addressed to the Charlotte, North Carolina-based bank. The letters landed four months after the Consumer Financial Protection Bureau dropped a lawsuit against Early Warning Services and its three largest bank owners. The agency had alleged in the lawsuit that EWS and the three banks failed to protect users from fraud and scams and didn't do enough to help victims recover their money. The bureau abandoned that litigation after President Donald Trump's administration began dismantling the agency. Zelle customers at the three largest bank owners, JPMorgan, Bank of America and Wells Fargo, lost a total of $870 million to fraud on the P2Pnetwork over seven years, the CFPB said in the suit that was filed in December. The majority of fraud victims were not reimbursed, a Senate subcommittee investigation released by Blumenthal's office in July 2024 found. The CFPB's lawsuit was filed when Biden appointee Rohit Chopra was the agency's director. But the Trump Administration fired Chopra in February and has significantly scaled back the bureau's enforcement actions under its acting director, Russell Vought, who is also director of the White House Office of Management and Budget. Warren, Blumenthal and Waters acknowledged the CFPB's pullback in their July 1 letter. The members of Congress asked for — among other things — the percentage of scams and fraud committed over peer-to-peer payment platforms like Zelle in the last five calendar years. They also requested information about any other fraud or scam trends identified by the banks, along with the banks' policies and procedures regarding fraud. 'If Bank of America does not collect this data, why not?' the letter to the bank says. The letter to JPMorgan made mostly the same requests, but also asked how the bank decided to block Zelle transactions that originated on social media and what additional steps it is taking to protect its customers. 'We have extensive efforts to help clients avoid scams and remind them Zelle should be used to send money to friends, family and people you trust,' a Bank of America spokesperson said in an emailed statement. Spokespeople for the six other banks named in the letters either did not respond to requests for comment or referred the request for comment to Early Warning Services. 'Zelle is leading the fight against scams and fraud and has industry-leading reimbursement policies that go above and beyond the law,' an Early Warning Services spokesperson said in an emailed statement, although the statement did not describe what those policies entail. The statement also said that 99.95% 'of all transactions on the platform are completed without any report of scam or fraud.' Recommended Reading Early Warning pitches Zelle to Treasury Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
