Page 7 - August 22, 2024 Bulletin

aRTiCLeS

rule clarifies how the new 10-year rule on distributions operates for NCSL tracked more than 200 resolutions and proposed laws related
eligible beneficiaries – such as an employee’s spouse, minor child, a to digital assets introduced in state legislatures this year. Many failed
chronically ill or disabled person, or another beneficiary not more to advance while many others remain under consideration. Still,
than 10 years younger than the employee – and for other, “ineligible” more than 60 resolutions and bills have been adopted so far. One
beneficiaries. While eligible beneficiaries have some flexibility on example is Colorado, which repealed its Digital Token Act, a 2019
the manner and timing of distribution of their inherited interest, state law that exempted cryptocurrencies from certain regulations for
ineligible beneficiaries must have their entire interest distributed securities and investment products. Another example is Louisiana,
within a 10-year period. which passed a law prohibiting governmental authorities from
blocking digital assets as a form of payment for goods and services,
Addressing the concern that banks should not be responsible
for maintaining or protecting a beneficiary’s private health care but at the same time prohibited state agencies and local governments
information that is not necessary to fulfill their role as IRS trustee/ from accepting CBDCs as a form of payment.
custodian, the agency adopted the recommendation that IRA Several states took up legislation to ban or restrict the use and
trustees and custodians not be required to obtain documentation development of CBDCs, inspired in part by recent amendments
– as is the case for plan administrators – of an eligible beneficiary’s made by the Uniform Law Commission to the Uniform
disability or chronic illness. The final rule’s applicability date will Commercial Code to address transactions involving digital assets.
be prospective, not retroactive. The final rule is effective Sept. 24 Georgia prohibited governmental agencies from using CBDC as
and applies for purposes of determining RMDs for calendar years payment and from participating in testing the use of such currency.
beginning on or after Jan. 1, 2025. Nebraska passed a law to prevent the UCC from being used in the
creation of CBDC. South Dakota adopted a resolution opposing the
Read more: https://www.govinfo.gov/content/pkg/FR-2024-07-19/
pdf/2024-14542.pdf creation of a CBDC.
Read more: https://www.ncsl.org/financial-services/cryptocurrency-
Fannie Mae, Freddie Mac Push digital-or-virtual-currency-and-digital-assets-2024-legislation
Back Reconsideration of Value Credit Cards Remain Most
Application Deadline Popular Payments Option

Fannie Mae and Freddie Mac have extended the effective date for
the appraisal reconsideration of value, or ROV, requirements. Sellers A recent survey by TD Bank found that a majority of respondents
must now comply with the ROV requirements for mortgages with had multiple credit cards, with rewards programs being the
application received dates on or after Oct. 31 most enticing feature when choosing a new card. The bank’s
2024 Consumer Spending Index found that not only did most
The date change is meant to give sellers additional time to respondents have multiple credit cards, nearly half (47%) said they
implement ROV processes, according to Freddie Mac. had three or more cards.
The ROV policy, which was announced in May, allows borrowers to Rewards cards dominate the credit card space with more than eight
request that an appraiser re-assess the appraised value of a property in 10 consumers (83%) having one, according to TD Bank. When
due to potential appraisal reporting deficiencies or an inappropriate it comes to choosing a new card, consumers are most enticed by
selection of comparable properties. It was part of a larger package the rewards program structure (34%), attractive introductory offers
of Federal Housing Administration and Federal Housing Finance (33%) and the reputation of the card issuer or financial institution
Agency policies meant to give borrowers the ability to challenge (24%).
property appraisals that they believe are inaccurate or biased.
Debit cards also remain popular, with consumers closely split
Read more: https://guide.freddiemac.com/app/guide/bulletin/2024-F between credit and debit as their primary method for making day-to-
day purchases, with 43% using a credit card and 39% using a debit
Proposals in State Legislatures or check card tied to a checking account. The preference for credit
Target Digital Assets, CBDCs cards was driven by several factors, including convenience (64%),
the opportunity to maximize rewards (60%) and enhanced security
At least 35 states have taken up proposed bills on cryptocurrency on purchases (46%). Only 10% of respondents report using cash as
and other digital assets in 2024, with several states adopting laws on their primary spending method.
issues ranging from crypto mining to banning the use of a central Respondents also expressed hesitancy to embrace buy now pay later
bank digital currency, according to a new analysis by the National options, with only 28% having used BNPL installment options. The
Conference of State Legislatures.
use of BNPL was popular among millennials, with 45% having used

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