A Thing
The Green SheetGreen Sheet

Friday, May 17, 2024

Items of interest we came across this week

The Supreme Court ruled on Thurs. May 16, 2024, that the Consumer Financial Protection Bureau's funding mechanism, which bypasses the congressional appropriations process, is constitutional. The 7-2 decision preserves the agency’s independent funding model and affirms its legitimacy.

The case was initiated by payday lenders who argued that the CFPB's funding structure, established through the Federal Reserve rather than Congress, violated the Constitution’s appropriations clause. The clause mandates that no money be withdrawn from the Treasury without an appropriation made by law. A federal appeals court in Louisiana had previously sided with the lenders, deeming the funding structure unconstitutional.

Writing for the majority, Justice Clarence Thomas emphasized that the statute authorizing the CFPB to draw funds from the Federal Reserve satisfies the appropriations clause. He referenced historical practices, noting that legislatures have long exercised discretion in designating funding sources for various government operations.

Justices Samuel Alito and Neil Gorsuch dissented, arguing that the decision undermines congressional control over public expenditures. Alito criticized the ruling for allowing the CFPB to operate with significant financial autonomy, which he contended was contrary to the intentions of the Constitution’s framers.

The ruling is seen as a victory for the Biden administration, which argued that the CFPB’s independence is crucial for protecting consumers from abusive financial practices. Despite the ruling, Republican lawmakers vowed to continue efforts to increase oversight of the agency.

ETA opposes California bill on AI

The Electronic Transactions Association worked with members and coalition partners to author an opposition letter on California's AB 2930, which would regulate the use of automated decision tools. The May 8, 2024, letter signed by Brian Yates, the ETA's senior director, state government relations, is addressed to California Assemblymember Rebecca Bauer-Kahan, chair of the California State Assembly Privacy and Consumer Protection Committee. She introduced the bill in February.

The letter introduced the ETA and suggested refinements to the bill to add clarity and avoid unintended consequences. To read the letter, see www.electran.org/wp-content/uploads/ETA-Opposition-California-AB2930.pdf . The ETA separately stated it "supports adding language to protect the use of ADTs [abstract data types] for crime detection and prevention, and advocates for the removal of low risk financial services activity from the bill." The association affirmed it will continue to advocate on behalf of members on artificial intelligence legislation at the state level. For question, contact Yates, at byates@electran.org.

EBT downtime in New York

Dejavoo, an IPOS Systems company, sent notice that an outage in the New York State Electronic Benefits Transfer (EBT) system is scheduled for Sun., May 19, 2024, between 12:01 a.m. and approximately 11:00 a.m. On its website, the New York State Office of Temporary and Disability Assistance stated, "Cardholder access to EBT benefits will not be available during this period. This includes access to food and cash purchases or withdrawals, as well as access to the EBT toll-free customer service helpline, mobile app, and client portal. Please plan accordingly."

Specifics about the period of downtime will be available at www.otda.ny.gov and www.mybenefits.ny.gov.

Pushing the DLT envelope

On May 15, 2024, the Eurosystem began the first of a series of trials to test the use of distributed ledger technology (DLT) for the settlement of wholesale transactions in central bank money. Edvards Margevics, co-partner at fintech company Concryt, said exploring the integration of DLT in wholesale transaction settlement could be a pivotal moment in the evolution of blockchain and crypto currencies.

"By involving private companies and central banks in live trials, the Eurosystem demonstrates a commitment to exploring innovative solutions for enhanced efficiency and security in financial markets," he said. "These trials offer valuable insights into the potential benefits of DLT integration in wholesale financial transactions, paving the way for future advancements in blockchain infrastructure."

However, Margevics noted that the Eurosystem’s exploratory work does not necessarily constitute a commitment to provide any steady-state solution(s) in the future or to make any changes to its current infrastructure. "The responsibility for making DLT a success is on industry players," he said. "If the market wants to go in this direction, it is on the ECB to find out what the cost-benefit of any solution will be, so the entire crypto industry will be interested in the outcome of these trials.” 

Four steps for a seamless CX strategy

Customer Contact Week Digital issued Mastering Today's Customer Experience Conversations, a new report created to provide key insights on simplifying customer experiences at a time when disconnect is abundant. "Dive into mastering the complexity of today’s CX conversations and learn from Marriott’s most recent transformation journey through a featured case study," CCW stated before divulging quick summaries of the first three steps as follows:

  1. Move Away from Legacy Systems: Streamline your tech setup by ditching unnecessary apps and embracing a unified CX AI platform for smoother experiences and cost savings.
  2. Understand Your Customer: Align customer feedback with organizational goals for incremental CX innovation success.
  3. Don’t Get Distracted: Stay focused on your organization's critical needs, prioritizing projects based on identified pain points rather than chasing short-term trends, ensuring strategic growth and intentional innovation.

For the fourth step and in-depth explanations, request the full report at bit.ly/3QNk60w. end of article

The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
A Thing