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Settlement of Digital Asset Trading Just Got Easier

SEC relief streamlines noncustodial settlement of digital asset trades, but broker-dealer custody is still off-limits. On September 25, 2020, the US Securities and Exchange Commission (SEC) issued a no-action letter (the...more

SEC Greenlights Investment Fund Delivered in Security Tokens

The milestone fund structure portends a reduced role for broker-dealers, who may be sidelined by innovators unwilling to wait for regulators. On July 6, 2020, asset management firm Arca announced that the US Securities and...more

Taking the Scarlet Out of the Letters I-C-O

SEC Commissioner Peirce has proposed a three-year safe harbor for qualifying token projects, but regulatory clarity remains elusive. SEC Commissioner Hester Peirce has been a perennial advocate of innovation in the...more

INSIGHT: Crypto - The Pursuit of Sufficient Decentralization

Recent SEC guidance on digital assets cleared a path for at least certain stable coins or payment tokens to avoid securities regulation. However, Latham & Watkins attorneys say there are still a number of open questions that...more

The Yellow Brick Road for Consumer Tokens: The Path to SEC and CFTC Compliance - An Update

Developing a framework for consumer tokens - With the rapid growth in the development of blockchain technology, virtual currencies and token sales (sometimes referred to as initial coin offerings, or ICOs), token...more

Harbor Finds Calmer FINRA Waters Outside the Custody Storm

In line with its previous guidance, FINRA has granted broker-dealer (but not custodian) status to a digital asset platform. In a follow-up to the July 2019 SEC and FINRA joint staff statement (Joint Statement) clarifying...more

Crypto - The Pursuit of Sufficient Decentralization

Recent SEC guidance on digital assets cleared a path for at least certain stable coins or payment tokens to avoid securities regulation. However, Latham & Watkins attorneys say there are still a number of open questions that...more

Can Broker-Dealers HODL? SEC and FINRA Say Keep It Noncustodial for Now

The regulators attempt to clarify their position on the possible custody of digital assets by broker-dealers, but questions remain. The SEC and FINRA recently released a joint staff statement (Joint Statement) addressing...more

A Path Forward for Consumer Tokens?

SEC’s Hinman provides helpful guidance for analyzing digital assets under the US securities laws. William Hinman, Director of the US Securities and Exchange Commission (SEC) Division of Corporation Finance, provided...more

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