Today in TechREG: New EU Credit Rules May Come

Today in TechREG, two top officials of central banks have criticized crypto assets and the disruption these could bring to the international financial system if they are not regulated. An ECB board member also highlighted the benefits of a digital euro. Plus, EU lawmakers will discuss Tuesday (May 17) the final amendments to the proposed Consumer Credit Directive that could be approved before the summer break. 

EU Regulators Lash out at Stablecoins While Boosting CBDCs 

Bank of France Governor Francois Villeroy de Galhau told a conference in Paris that more regulation is needed, and crypto assets should be interoperable in a consistent and appropriate manner across jurisdictions. 

The second official to discuss this issue was Fabio Panetta, a member of the executive board of the European Central Bank and the person in charge of developing a central bank digital currency for Europe. Panetta has previously warned of the risks associated with crypto assets. During his speech in Dublin on Monday (May 16), he also warned that stablecoins are vulnerable to runs. 

But Panetta’s speech was not so much about criticizing crypto assets but about promoting the benefits of a digital euro and the complementarity of public and private money to guarantee stability, competition and innovation. 

New EU Consumer Credit Rules May Be Approved By Summer 

A committee of the European Parliament will vote in June on the proposed Consumer Credit Directive (CCD) with the aim of getting a final approval in plenary session before the summer break. Lawmakers will discuss the proposed amendments to the text on Tuesday (May 17).

The existing CCD is from 2008, and though it introduced a number of benefits for consumers, it doesn’t include many new lending initiatives broadly used by consumers such as buy now, pay later (BNPL), payday loans or short-term overdraft facilities.  

The Commission’s proposal aims to address these technological developments by expanding its scope, introducing pricing rules for some credits, clarifying information requirements and revising creditworthiness assessments.   

OCC Encourages Banks to Explore AI Solutions for RegTech 

Kevin Greenfield, deputy comptroller for Operational Risk Policy at the Office of the Comptroller of the Currency (OCC), explained in a public hearing hosted by the House Committee on Financial Services on Friday (May 13) what the agency is doing to supervise and assist banks that are using AI tools to facilitate regulatory compliance, commonly referred to as RegTech.  

Greenfield said the agency supports national banks and federal savings associations exploring safe and sound uses of AI. 

EU-US Trade and Technology Council Meeting 

On Monday (May 16), the EU and the U.S. have reaffirmed their close cooperation to address global trade and technology challenges. 

The Ministerial meeting agreed to work jointly with Ukraine to rebuild its economy. The co-chairs will also work on different areas like information integrity, trade and labor dialogue, export controls, secure supply chains, technology standards, artificial intelligence and platform governance.