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Friday, May 31, 2024

Quick takes: Things that caught our eye this week

Nacha's Payments Innovation Alliance, through its Cybersecurity & Payments AI Project Team, debuted a new resource with the release of the Security Incident Response Procedure Guide for Companies. This free guide outlines essential procedures and actions for companies to follow upon suspecting a security incident or breach involving sensitive data.

The guide, Nacha stated, serves as a crucial tool for promptly evaluating and managing suspected data breaches or incidents, advising on whether and how to notify customers, regulators, and other stakeholders based on the specifics of the incident.

Emphasizing the urgency in response, Matt Luzadder, managing partner at Kelley Drye & Warren LLP and co-leader of the Alliance's project team, highlights the importance of understanding the types of data compromised, the scale of loss and applicable legal frameworks.

The guide also provides a framework for planning, triage and response, aiming to minimize potential damage. It is designed to be customizable, allowing organizations to adapt the content according to their structure, industry and specific needs.

Additionally, the guide is part of a broader strategy that includes comprehensive disaster recovery plans, regular employee training, system audits and the use of advanced threat detection technologies. Thus, Nacha pointed out, it complements other resources from the Payments Innovation Alliance to enhance organizational preparedness against cyber threats. For more information or to download the guide, interested parties can visit www.nacha.org/cybersecurity-response-project-team.

Crypto trading

The New York Stock Exchange is collaborating with CoinDesk Indices to launch cash-settled index options, tracking the CoinDesk Bitcoin Price Index, the longest-operating spot bitcoin index. This development was discussed as part of a wider panel Worlds Collide: Seeing TradFi Through a Crypto Lens and Vice Versa, which took place at what organizers identified as the world's largest cryptocurrency conference, Consensus 2024 at The Austin Convention Centre on Wed., May 29, 2024.

Speakers included Tom Farley, CEO, Bullish (which acquired Coindesk, the owner of Consensus) and Lynn Martin, President of The New York Stock Exchange. The session was moderated by Jeff Roberts, Finance and Crypto Editor Fortune magazine. Topics for discussion included bitcoin and legacy financial systems, tradfi, shifting from the Wall Street exchange into digital assets and more.

"The technology that underpins crypto, specifically blockchain, is great technology," Martin said. "Obviously it's something the industry will continue to look at to see how it can be used to make settlement more efficient and more transparent."

Regarding the future of crypto, Farley said, "I think it's going to become just like the internet. We couldn't have foreseen Google or Amazon or Netflix or any of these things being powered by the internet."

NAC scores major Supreme Court win

The National ATM Council, in April 2024, achieved a pivotal victory in its antitrust litigation against Visa and Mastercard, with the U.S. Supreme Court decisively rejecting Visa/Mastercard's petition for certiorari. This refusal effectively upholds the Class Certification previously granted by the District Court to the ATM Operator Class and two ATM Consumer Classes, a decision affirmed by the DC Circuit Court of Appeals.

NAC stated that this Supreme Court ruling marks a significant advancement in the lawsuit, paving the way for a trial where the grievances of U.S. independent ATM operators will be addressed. The legal efforts were spearheaded by Jonathan Rubin and his team at MoginRubin LLP, whose opposition brief played a critical role in this outcome, the council noted, adding that despite ongoing challenges, including what it deems as unnecessary and burdensome discovery demands by the global payment networks, the class counsel remains vigilant in opposing these actions and is focused on arranging an expedited trial schedule.

This 12-year legal battle is a testament to NAC's enduring advocacy for enhancing the business environment for independent ATM operators, the council stated. In light of these developments, NAC emphasized the importance of continued support and participation from all independent ATM operators to strengthen their collective impact in the industry.

Interledger Foundation seeks proposals

The Interledger Foundation, dedicated to fostering an open and interoperable payment network, has launched a new funding initiative to support fintechs utilizing its Interledger Protocol (ILP) to expand payment capabilities into emerging markets and reach underserved populations. The foundation is allocating $4 million from its larger fund to assist companies that help grow its global payment network.

This initiative targets fintech companies aiming to enhance their platforms with cross-border payment options, offering substantial financial incentives to lower the barriers typically associated with such expansions, such as high processing costs and currency translation fees.

The funding is designed to support two types of fintech operations: those facilitating payment transactions and those receiving payments through their applications, with grants of $250,000 and $150,000 respectively.

This effort is part of the foundation's broader mission to promote financial inclusivity and make instant, easy-to-use payment systems accessible worldwide. By providing these resources, the Interledger Foundation aims to encourage the proliferation of digital financial services across various entities like digital wallets, mobile money providers, and banks, contributing to a more financially inclusive global ecosystem.

Applications are open until Aug. 30, 2024. Further details are available in the foundation's Call for Proposals at t.ly/FD8cd . end of article

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