Potential FSOC Scrutiny of “Big Tech” Firms

On February 2, 2024, Cravath published a memo for its clients entitled “Potential FSOC Scrutiny of ‘Big Tech’ Firms.”

A recent statement by the Director of the Consumer Financial Protection Bureau states that the Financial Stability Oversight Council (FSOC) is “actively evaluating” the “first‑ever use” of one of its systemic importance designation authorities: its authority under Title VIII of the Dodd‑Frank Act to designate certain “payment, clearing or settlement activities.” The Director’s statement indicates that FSOC may be evaluating this designation authority for use with respect to “Big Tech,” such as cloud providers, stablecoin arrangements and/or other payment companies.

The memo provides details concerning the Director’s statement, as well as information concerning FSOC and its powers, particularly FSOC’s Title VIII designation authorities.

Please click here to read the memo.