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Remittance Transfers Under the Electronic Fund Transfer Act (Regulation E)

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https://www.federalregister.gov/documents/2020/06/05/2020-10278/remittance-transfers-under-the-electronic-fund-transfer-act-regulation-e

 

A Rule by the Consumer Financial Protection Bureau on 06/05/2020

 

If this has been posted please erase. I haven't read it. I'm packing up a house.  Be safe this weekend and please wear a mask.

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10 hours ago, enrique11 said:

OMG! lol...that's a lengthy-@ss document, no wonder you didn't quote any of it. ;) 

 

This is old. Following quote was everywhere in Twitter and crypto news ... 

Quote

The Bureau has continued to monitor the remittance transfer market since the publication of the Assessment Report and observes that most of these developments continue to progress. Examples include: (1) The continued growth and expanding functionality of the Society for Worldwide Interbank Financial Telecommunication (SWIFT)'s “global payment innovation” (gpi) tracking product, which can increase the amount of up-front information available to sending institutions, and the expansion of the major payment card networks' capacity to support cross-border payments; [57] (2) the continued growth of “fintech” nonbank remittance transfer providers and their further expansion into partnerships and other relationships with banks and credit unions, which allow such entities to tap into the closed network payment systems that nonbank remittance transfer providers have developed; [58] and (3) the continued growth and expanding partnerships of virtual currency companies, such as Ripple, which offer both a payments messaging platform to support cross-border money transfers as well as a virtual currency, XRP, which can be used to effect settlement of those transfers.

Quote

To the degree banks and credit unions increase their reliance on closed network payment systems for sending remittance transfers and other cross-border money transfers, the Bureau notes that this could result in greater standardization and ease by which sending institutions can know exact covered third-party fees and exchange rates. The Bureau also believes that expanded adoption of SWIFT's gpi product or Ripple's suite of products could similarly allow banks and credit unions to know the exact final amount that recipients of remittance transfers will receive before they are sent.

 

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Posted (edited)

At the beginning of her latest video crypto Eri (posted this mornig) is hot on this story too.   Seems further confirmation that XRP will not be labelled a security.

 

 

Edited by Julian_Williams

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2 hours ago, Julian_Williams said:

 Seems further confirmation that XRP will not be labelled a security.

Sorry Julian, nothing in the paper does anything of the sort. YT and other dot connectors are playing the age old game of suggesting that if someone mentions Ripple or XRP as an example it is an endorsement in some way. Just like it was claimed for a long time that Ripple was in bed with the Bank of England because they mentioned them in some papers, and did a brief proof of concept that went nowhere.

The following are the two sections that mention Ripple/XRP. No endorsements, no mention of securities.

The Bureau has continued to monitor the remittance transfer market since the publication of the Assessment Report and observes that most of these developments continue to progress. Examples include: (1) The continued growth and expanding functionality of the Society for Worldwide Interbank Financial Telecommunication (SWIFT)'s “global payment innovation” (gpi) tracking product, which can increase the amount of up-front information available to sending institutions, and the expansion of the major payment card networks' capacity to support cross-border payments; [57] (2) the continued growth of “fintech” nonbank remittance transfer providers and their further expansion into partnerships and other relationships with banks and credit unions, which allow such entities to tap into the closed network payment systems that nonbank remittance transfer providers have developed; [58] and (3) the continued growth and expanding partnerships of virtual currency companies, such as Ripple, which offer both a payments messaging platform to support cross-border money transfers as well as a virtual currency, XRP, which can be used to effect settlement of those transfers.[59]

To the degree banks and credit unions increase their reliance on closed network payment systems for sending remittance transfers and other cross-border money transfers, the Bureau notes that this could result in greater standardization and ease by which sending institutions can know exact covered third-party fees and exchange rates. The Bureau also believes that expanded adoption of SWIFT's gpi product or Ripple's suite of products could similarly allow banks and credit unions to know the exact final amount that recipients of remittance transfers will receive before they are sent.

 

 

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Posted (edited)
6 hours ago, xerxesramesepolybius said:

Sorry Julian, nothing in the paper does anything of the sort. YT and other dot connectors are playing the age old game of suggesting that if someone mentions Ripple or XRP as an example it is an endorsement in some way. Just like it was claimed for a long time that Ripple was in bed with the Bank of England because they mentioned them in some papers, and did a brief proof of concept that went nowhere.

The following are the two sections that mention Ripple/XRP. No endorsements, no mention of securities.

The Bureau has continued to monitor the remittance transfer market since the publication of the Assessment Report and observes that most of these developments continue to progress. Examples include: (1) The continued growth and expanding functionality of the Society for Worldwide Interbank Financial Telecommunication (SWIFT)'s “global payment innovation” (gpi) tracking product, which can increase the amount of up-front information available to sending institutions, and the expansion of the major payment card networks' capacity to support cross-border payments; [57] (2) the continued growth of “fintech” nonbank remittance transfer providers and their further expansion into partnerships and other relationships with banks and credit unions, which allow such entities to tap into the closed network payment systems that nonbank remittance transfer providers have developed; [58] and (3) the continued growth and expanding partnerships of virtual currency companies, such as Ripple, which offer both a payments messaging platform to support cross-border money transfers as well as a virtual currency, XRP, which can be used to effect settlement of those transfers.[59]

To the degree banks and credit unions increase their reliance on closed network payment systems for sending remittance transfers and other cross-border money transfers, the Bureau notes that this could result in greater standardization and ease by which sending institutions can know exact covered third-party fees and exchange rates. The Bureau also believes that expanded adoption of SWIFT's gpi product or Ripple's suite of products could similarly allow banks and credit unions to know the exact final amount that recipients of remittance transfers will receive before they are sent.

 

 

To use Eri's parlance - some people are "hanging on with their fingernails" to the notion that XRP is a security:   

SEC is supposed to protect the public from breaches of the Security laws, yet they say nothing when even their own government websites advocate that XRP is a tool of remittance.  They have a duty to speak up if even government documents are wrongly misleading the public into thinking XRP is a tool of remittance, and by saying nothing they make  it  harder for them afterwards to make the case XRP is a security and not a remittance tool.  In almost every country outside the US there is no controversy that XRP is a DA for remittance, and ODL is opening up across the globe.

Your position that because SEC have not clarified the matter, all speculation is dot joining, is looking like an isolated, maybe even delusional position.  

Edited by Julian_Williams

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On 7/4/2020 at 4:46 PM, Julian_Williams said:

 

On 7/4/2020 at 3:35 PM, xerxesramesepolybius said:

Sorry Julian, nothing in the paper does anything of the sort. YT and other dot connectors are playing the age old game of suggesting that if someone mentions Ripple or XRP as an example it is an endorsement in some way. Just like it was claimed for a long time that Ripple was in bed with the Bank of England because they mentioned them in some papers, and did a brief proof of concept that went nowhere.

The following are the two sections that mention Ripple/XRP. No endorsements, no mention of securities.

The Bureau has continued to monitor the remittance transfer market since the publication of the Assessment Report and observes that most of these developments continue to progress. Examples include: (1) The continued growth and expanding functionality of the Society for Worldwide Interbank Financial Telecommunication (SWIFT)'s “global payment innovation” (gpi) tracking product, which can increase the amount of up-front information available to sending institutions, and the expansion of the major payment card networks' capacity to support cross-border payments; [57] (2) the continued growth of “fintech” nonbank remittance transfer providers and their further expansion into partnerships and other relationships with banks and credit unions, which allow such entities to tap into the closed network payment systems that nonbank remittance transfer providers have developed; [58] and (3) the continued growth and expanding partnerships of virtual currency companies, such as Ripple, which offer both a payments messaging platform to support cross-border money transfers as well as a virtual currency, XRP, which can be used to effect settlement of those transfers.[59]

To the degree banks and credit unions increase their reliance on closed network payment systems for sending remittance transfers and other cross-border money transfers, the Bureau notes that this could result in greater standardization and ease by which sending institutions can know exact covered third-party fees and exchange rates. The Bureau also believes that expanded adoption of SWIFT's gpi product or Ripple's suite of products could similarly allow banks and credit unions to know the exact final amount that recipients of remittance transfers will receive before they are sent.

 

 

To use Eri's parlance - some people are "hanging on with their fingernails" to the notion that XRP is a security: 

 

Well a virtually full time XRP/Ripple promoter would say that but seriously if Ripple had genuine confidence that XRP was not a security under US law (other jurisdictions are a totally different matter) they would not have spent 2 years avoiding going to court and trying to delay or have the various cases dismissed on technicalities.

if the had confidence XRP was not a security they would have gone to court, won and established a legal precedent that XRP was not to security. They have not. Neither have they gone to the SEC and asked for a “no-action” letter. 
 Ripple clearly do not have confidence in their claims.

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Posted (edited)
1 hour ago, xerxesramesepolybius said:

Well a virtually full time XRP/Ripple promoter would say that but seriously if Ripple had genuine confidence that XRP was not a security under US law (other jurisdictions are a totally different matter) they would not have spent 2 years avoiding going to court and trying to delay or have the various cases dismissed on technicalities.

if the had confidence XRP was not a security they would have gone to court, won and established a legal precedent that XRP was not to security. They have not. Neither have they gone to the SEC and asked for a “no-action” letter. 
 Ripple clearly do not have confidence in their claims.

SEC have given heavy hints that XRP might have started as a security and ended up as a non security, and that companies like Ripple are invited to discus the issues with them.  A letter would be helpful.

It seems pretty clear that SEC and Ripple are working together on a constructive outcome, and this will probably settle the Court case too. 

China is steaming ahead whilst the western world are hamstrung by the regulatory delays.  This will almost certainly be known by SEC and it cannot be long before we finally have clarity.

Eri is pretty fair in her analysis and has a high competence in Financial markets.  Her latest video explains an alternative to Ripple ODL - see Crypto Eri thread.  Of course she is a cheer leader for XRP Ripple, but there is nothing wrong with having a perspective from which to do your analysis.

Edited by Julian_Williams

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