Payments
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Modern, Strategic Regulatory Expertise and Practical Product Counseling Experience
As a leading law firm for technology companies, Wilson Sonsini provides its clients in the payments space with the full spectrum of regulatory, policy, operational, commercial, and risk-management advice. Companies that are using new technologies to provide innovative payments or bank-like services count on us for sophisticated, creative advice that is attuned to the evolving regulatory landscape and designed to suit their strategic business needs.
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Tailored, Solutions-Oriented Services for a Broad Range of Innovative Clients
Wilson Sonsini helps companies of all types and sizes navigate the complexities of the payments sector—whether they are launching an embedded payment solution, diversifying offerings, upgrading systems to mitigate emerging risks, or strategically partnering with banks. We specialize in crafting pragmatic, business-minded legal solutions to complex issues at the intersection of payments technology and financial regulation.
Wilson Sonsini’s Fintech and Financial Services Group specializes in creatively and collaboratively partnering with clients at the forefront of payments innovation to navigate the complexities of the evolving financial services sector. We help clients comply with applicable laws and the changing regulatory landscape, design innovative products that support regulatory compliance and advance strategic business goals, and craft tailored legal frameworks that incorporate industry best practice and mitigate emerging risks. We also help clients keep abreast of key legislative and regulatory developments, facilitate stakeholder feedback to financial authorities, and provide insights on industry trends.
Our team includes experienced attorneys with expertise advising innovative companies on all aspects of payments law and regulatory matters critical to designing and bringing new payment solutions to market, as well as strategically mitigating risks around the corner. We have deep knowledge of the regulatory and operational aspects of a broad range of payment services and technologies, spanning traditional systems and cutting-edge payments products. Our transatlantic footprint enables us to offer efficient, integrated counsel on the range of legal and regulatory issues associated with expanding the geographic reach of various payment offerings.
Select Areas of Expertise
- Product development, specialized commercial arrangements, and risk management across a diverse spectrum of payments products and services
- Innovative payment solutions that leverage bank partnerships, card networks, ACH, funds transfers, and instant payment systems
- Digital wallets and peer-to-peer payment solutions
- Emerging payment products and services, such as stablecoins, tokenized deposits, and blockchain-based payment systems
- Technology-driven ancillary services, such as token vaults, AI-based fraud detection, and programmable money
- Payments regulation and policy
- Instant payments
- Digital currencies and distributed ledger technologies
- Supervision of bank-fintech arrangements
- Consumer protection
- Debit card interchange
- Money transmission
- E-money
- International standards for payment systems
- Uniform Commercial Code
- Banking laws and regulation
Overview
Wilson Sonsini’s Fintech and Financial Services Group specializes in creatively and collaboratively partnering with clients at the forefront of payments innovation to navigate the complexities of the evolving financial services sector. We help clients comply with applicable laws and the changing regulatory landscape, design innovative products that support regulatory compliance and advance strategic business goals, and craft tailored legal frameworks that incorporate industry best practice and mitigate emerging risks. We also help clients keep abreast of key legislative and regulatory developments, facilitate stakeholder feedback to financial authorities, and provide insights on industry trends.
Our team includes experienced attorneys with expertise advising innovative companies on all aspects of payments law and regulatory matters critical to designing and bringing new payment solutions to market, as well as strategically mitigating risks around the corner. We have deep knowledge of the regulatory and operational aspects of a broad range of payment services and technologies, spanning traditional systems and cutting-edge payments products. Our transatlantic footprint enables us to offer efficient, integrated counsel on the range of legal and regulatory issues associated with expanding the geographic reach of various payment offerings.
Select Areas of Expertise
- Product development, specialized commercial arrangements, and risk management across a diverse spectrum of payments products and services
- Innovative payment solutions that leverage bank partnerships, card networks, ACH, funds transfers, and instant payment systems
- Digital wallets and peer-to-peer payment solutions
- Emerging payment products and services, such as stablecoins, tokenized deposits, and blockchain-based payment systems
- Technology-driven ancillary services, such as token vaults, AI-based fraud detection, and programmable money
- Payments regulation and policy
- Instant payments
- Digital currencies and distributed ledger technologies
- Supervision of bank-fintech arrangements
- Consumer protection
- Debit card interchange
- Money transmission
- E-money
- International standards for payment systems
- Uniform Commercial Code
- Banking laws and regulation
Alerts
Not So NFTy: What the Impact Theory and Stoner Cats Enforcement Actions Could Mean for NFTs
The U.S. Securities and Exchange Commission (SEC) recently announced charges against and settlements with two NFT issuers for allegedly conducting illegally unregistered offers and sales of securities in the form of “non-fungible tokens,” or NFTs, in violation of Section 5 of the Securities Act of 1933 (the Securities Act). One issuer is a California-based media and entertainment company, Impact Theory, LLC, while the other, Stoner Cats 2, LLC, is the producer of an adult animated television show about cats that become sentient after being exposed to their owner’s medical marijuana. These are the SEC’s first two public actions against NFT issuers under the federal securities laws.
Alerts
Two New Rulings from the SDNY with Mixed Messages for Crypto: Potential Implications for Regulation of the Crypto Industry
A pair of recent rulings from the Southern District of New York (SDNY) have potentially increased confusion around the regulatory status of crypto asset regulation—but may also provide some interesting signs of what’s to come. In a long-awaited decision, Judge Analisa Torres ruled that certain sales by Ripple Labs, Inc. (Ripple) of its XRP token did not constitute unregistered sales of securities, as alleged by the U.S. Securities and Exchange Commission (SEC). Weeks later, Judge Jed S. Rakoff denied Terraform Labs Pte. Ltd.’s (Terraform) and Do Hyeong Kwon’s motion to dismiss an SEC complaint alleging that Terraform and Kwon violated securities laws based in part on the assertion that various tokens developed and distributed by Terraform are securities.
Newsletters
Focus on Fintech – Q2 2023
In this most recent issue, we discuss a number of federal banking agency updates, including the long-awaited Final Interagency Guidance on Third-Party Relationships and the Federal Reserve Bank of New York’s report on the feasibility of an interoperable network for wholesale payments, among other developments. We also address several updates from the SEC, including the reopening release for the proposed rule to amend the definition of “exchange” and the increased focus on investment adviser marketing, and examine proposed stablecoin and crypto asset legislation. Finally, we wrap up this edition with regulatory updates from the UK, consumer protection updates, and updates on certain fintech litigations, as well as an overview of select legislative developments at the state level.
Alerts
Insights into Central Bank Payments Innovation: Tokenized Money, DLT-based Infrastructures, and Public-Private Sector Collaboration
The head of the Federal Reserve’s New York Innovation Center (NYIC), Per von Zelowitz, joined Wilson Sonsini partner Jess Cheng for a conversation on the central bank’s payments innovation initiatives regarding the future of money and new financial market infrastructures at an American Bar Association (ABA) Business Law Section event in New York City on June 7, 2023.1 This alert briefly summarizes the event’s key takeaways.
Alerts
JROC Publishes Report on Future of Open Banking in the UK
The UK is widely regarded as a global leader in Open Banking, and regulators and industry participants believe there is strong potential to build on that success. Regulatory efforts on that front are led by Joint Regulatory Oversight Committee (the JROC), which was created in March 2022 to design and oversee the development of Open Banking in the UK. The JROC comprises the Financial Conduct Authority, the Payment Systems Regulator, HM Treasury, and the Competition and Markets Authority (the CMA).
Newsletters
Focus on Fintech – Q1 2023
In this latest issue of the firm’s Focus on Fintech newsletter, our attorneys discuss the dissolution of Silicon Valley Bank and Signature Bank and the increased scrutiny on banking activity, as well as a number of updates from the SEC, including its newly issued cash management order, its increase in enforcement activity against crypto companies, and its customer protection efforts. We also examine regulatory updates from the UK, provide an update on certain fintech litigations, and discuss the SEC’s 2023 exam priorities, as well as provide an overview of recent guidance and proposed bills from state regulators.
Insights
Alerts
Not So NFTy: What the Impact Theory and Stoner Cats Enforcement Actions Could Mean for NFTs
The U.S. Securities and Exchange Commission (SEC) recently announced charges against and settlements with two NFT issuers for allegedly conducting illegally unregistered offers and sales of securities in the form of “non-fungible tokens,” or NFTs, in violation of Section 5 of the Securities Act of 1933 (the Securities Act). One issuer is a California-based media and entertainment company, Impact Theory, LLC, while the other, Stoner Cats 2, LLC, is the producer of an adult animated television show about cats that become sentient after being exposed to their owner’s medical marijuana. These are the SEC’s first two public actions against NFT issuers under the federal securities laws.
Alerts
Two New Rulings from the SDNY with Mixed Messages for Crypto: Potential Implications for Regulation of the Crypto Industry
A pair of recent rulings from the Southern District of New York (SDNY) have potentially increased confusion around the regulatory status of crypto asset regulation—but may also provide some interesting signs of what’s to come. In a long-awaited decision, Judge Analisa Torres ruled that certain sales by Ripple Labs, Inc. (Ripple) of its XRP token did not constitute unregistered sales of securities, as alleged by the U.S. Securities and Exchange Commission (SEC). Weeks later, Judge Jed S. Rakoff denied Terraform Labs Pte. Ltd.’s (Terraform) and Do Hyeong Kwon’s motion to dismiss an SEC complaint alleging that Terraform and Kwon violated securities laws based in part on the assertion that various tokens developed and distributed by Terraform are securities.
Newsletters
Focus on Fintech – Q2 2023
In this most recent issue, we discuss a number of federal banking agency updates, including the long-awaited Final Interagency Guidance on Third-Party Relationships and the Federal Reserve Bank of New York’s report on the feasibility of an interoperable network for wholesale payments, among other developments. We also address several updates from the SEC, including the reopening release for the proposed rule to amend the definition of “exchange” and the increased focus on investment adviser marketing, and examine proposed stablecoin and crypto asset legislation. Finally, we wrap up this edition with regulatory updates from the UK, consumer protection updates, and updates on certain fintech litigations, as well as an overview of select legislative developments at the state level.
Alerts
Insights into Central Bank Payments Innovation: Tokenized Money, DLT-based Infrastructures, and Public-Private Sector Collaboration
The head of the Federal Reserve’s New York Innovation Center (NYIC), Per von Zelowitz, joined Wilson Sonsini partner Jess Cheng for a conversation on the central bank’s payments innovation initiatives regarding the future of money and new financial market infrastructures at an American Bar Association (ABA) Business Law Section event in New York City on June 7, 2023.1 This alert briefly summarizes the event’s key takeaways.
Alerts
JROC Publishes Report on Future of Open Banking in the UK
The UK is widely regarded as a global leader in Open Banking, and regulators and industry participants believe there is strong potential to build on that success. Regulatory efforts on that front are led by Joint Regulatory Oversight Committee (the JROC), which was created in March 2022 to design and oversee the development of Open Banking in the UK. The JROC comprises the Financial Conduct Authority, the Payment Systems Regulator, HM Treasury, and the Competition and Markets Authority (the CMA).
Newsletters
Focus on Fintech – Q1 2023
In this latest issue of the firm’s Focus on Fintech newsletter, our attorneys discuss the dissolution of Silicon Valley Bank and Signature Bank and the increased scrutiny on banking activity, as well as a number of updates from the SEC, including its newly issued cash management order, its increase in enforcement activity against crypto companies, and its customer protection efforts. We also examine regulatory updates from the UK, provide an update on certain fintech litigations, and discuss the SEC’s 2023 exam priorities, as well as provide an overview of recent guidance and proposed bills from state regulators.
Jess Cheng
Partner
Jess Cheng helps innovative companies adapt and thrive in the evolving payments space. She is a partner in the New York office of Wilson Sonsini Goodrich & Rosati, where she represents clients as a member of the firm’s fintech and financial services group.
Stephen R. Heifetz
Partner
Stephen advises clients on laws and policies at the intersection of international business and national security. He previously served in the U.S. government on the Committee on Foreign Investment in the U.S.
Josh Kaplan
Partner
Joshua (Josh) Kaplan is a corporate partner in the London and New York offices of Wilson Sonsini Goodrich & Rosati, where his practice focuses on U.S. expansion and serving companies at all stages of their life cycle, with an emphasis on clients in the financial technology and financial services sectors.
Chris Hurn
Senior Counsel
Christopher (Chris) Hurn is senior counsel in the London office of Wilson Sonsini Goodrich & Rosati, where he has a broad financial regulatory practice focusing on clients in the fintech and financial services sectors.
Mara Alioto
Associate
Mara Alioto is an associate in the San Francisco office of Wilson Sonsini Goodrich & Rosati, where she focuses on regulatory and transactional matters involving securities, blockchain, and fintech.
Troy K. Jenkins
Associate
Troy Jenkins is an associate in the Washington, D.C., office of Wilson Sonsini Goodrich & Rosati. His practice focuses on advising financial institutions, financial services companies, and technology companies providing electronic payment services on the legal issues affecting their business. Troy’s particular areas of expertise include federal money services business laws; state money transmission laws; the Electronic Fund Transfers Act (EFTA) and Regulation E; federal anti-money laundering laws; and the Electronic Signatures in Global and National Commerce Act (E-Sign Act). He also counsels clients on compliance with sanctions regimes.
Eric Quang
Associate
Eric Quang is an associate in the New York office of Wilson Sonsini Goodrich & Rosati, where he specializes in securities, fintech, and blockchain. In addition to handling day-to-day corporate matters, he focuses on regulatory and transactional matters involving securities and commodities laws for start-ups and emerging companies.
People
Jess Cheng
Partner
Jess Cheng helps innovative companies adapt and thrive in the evolving payments space. She is a partner in the New York office of Wilson Sonsini Goodrich & Rosati, where she represents clients as a member of the firm’s fintech and financial services group.
Stephen R. Heifetz
Partner
Stephen advises clients on laws and policies at the intersection of international business and national security. He previously served in the U.S. government on the Committee on Foreign Investment in the U.S.
Josh Kaplan
Partner
Joshua (Josh) Kaplan is a corporate partner in the London and New York offices of Wilson Sonsini Goodrich & Rosati, where his practice focuses on U.S. expansion and serving companies at all stages of their life cycle, with an emphasis on clients in the financial technology and financial services sectors.
Chris Hurn
Senior Counsel
Christopher (Chris) Hurn is senior counsel in the London office of Wilson Sonsini Goodrich & Rosati, where he has a broad financial regulatory practice focusing on clients in the fintech and financial services sectors.
Mara Alioto
Associate
Mara Alioto is an associate in the San Francisco office of Wilson Sonsini Goodrich & Rosati, where she focuses on regulatory and transactional matters involving securities, blockchain, and fintech.
Troy K. Jenkins
Associate
Troy Jenkins is an associate in the Washington, D.C., office of Wilson Sonsini Goodrich & Rosati. His practice focuses on advising financial institutions, financial services companies, and technology companies providing electronic payment services on the legal issues affecting their business. Troy’s particular areas of expertise include federal money services business laws; state money transmission laws; the Electronic Fund Transfers Act (EFTA) and Regulation E; federal anti-money laundering laws; and the Electronic Signatures in Global and National Commerce Act (E-Sign Act). He also counsels clients on compliance with sanctions regimes.
Eric Quang
Associate
Eric Quang is an associate in the New York office of Wilson Sonsini Goodrich & Rosati, where he specializes in securities, fintech, and blockchain. In addition to handling day-to-day corporate matters, he focuses on regulatory and transactional matters involving securities and commodities laws for start-ups and emerging companies.
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Recent Insights
Alerts
Not So NFTy: What the Impact Theory and Stoner Cats Enforcement Actions Could Mean for NFTs
The U.S. Securities and Exchange Commission (SEC) recently announced charges against and settlements with two NFT issuers for allegedly conducting illegally unregistered offers and sales of securities in the form of “non-fungible tokens,” or NFTs, in violation of Section 5 of the Securities Act of 1933 (the Securities Act). One issuer is a California-based media and entertainment company, Impact Theory, LLC, while the other, Stoner Cats 2, LLC, is the producer of an adult animated television show about cats that become sentient after being exposed to their owner’s medical marijuana. These are the SEC’s first two public actions against NFT issuers under the federal securities laws.
Learn More
Alerts
Two New Rulings from the SDNY with Mixed Messages for Crypto: Potential Implications for Regulation of the Crypto Industry
A pair of recent rulings from the Southern District of New York (SDNY) have potentially increased confusion around the regulatory status of crypto asset regulation—but may also provide some interesting signs of what’s to come. In a long-awaited decision, Judge Analisa Torres ruled that certain sales by Ripple Labs, Inc. (Ripple) of its XRP token did not constitute unregistered sales of securities, as alleged by the U.S. Securities and Exchange Commission (SEC). Weeks later, Judge Jed S. Rakoff denied Terraform Labs Pte. Ltd.’s (Terraform) and Do Hyeong Kwon’s motion to dismiss an SEC complaint alleging that Terraform and Kwon violated securities laws based in part on the assertion that various tokens developed and distributed by Terraform are securities.
Learn More
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