TechGC recently featured insights from Wilson Sonsini partner Jess Cheng on the regulatory considerations relevant to FedNow and strategic recommendations for innovative payment companies. Jess was previously Senior Counsel at the Federal Reserve Board of Governors, where she spearheaded the drafting of the federal regulations governing FedNow instant payments.
FedNow is the long-awaited new service for instant payments created by the Federal Reserve where money moves from one bank account to another, with settlement and receipt of final funds happening in near real-time.
The launch of the FedNow Service in 2023 marks a significant turning point in the U.S. payments industry and a rare window of opportunity for innovators. Especially because of the heavy regulation and fast-moving change sweeping the industry today, General Counsels have a tremendous impact in the payments space. Nailing down the foundational legal principles of the U.S. payment system can help General Counsels strategically capitalize on evolving regulation and changing customer preferences. – Jess Cheng |
The article features Jess’s insights on how, as the growth of FedNow reshapes the payment landscape, the role of General Counsels becomes paramount in navigating the complexities of regulatory compliance and risk management—as well as in leveraging instant payments as a competitive advantage and opportunity for innovation.
To read the full article, please click here.