The State of Wyoming is solidifying its position as the friendliest state in the US for digital asset innovation. Although comprehensive digital asset regulation at the federal level remains elusive, US states are angling to...more
For market participants pivoting toward ESG and digital assets, weighing the issues at the crossroads of these two megatrends is critical.
The huge rise in popularity of Bitcoin - and the growing interest by mainstream...more
4/13/2021
/ AML/CFT ,
Blockchain ,
Climate Change ,
Corporate Governance ,
Cryptocurrency ,
Decentralized Finance (DeFi) ,
Digital Assets ,
Environmental Social & Governance (ESG) ,
Paris Agreement ,
Popular ,
Risk Management
As the market for NFTs heats up, market participants should remain mindful of the regulatory implications of complex schemes.
As the current crypto boom has progressed, it seemed Decentralized Finance (DeFi) had cemented...more
3/15/2021
/ Blockchain ,
Cryptocurrency ,
Decentralized Finance (DeFi) ,
Digital Assets ,
Ethereum ,
Fine Art ,
FinTech ,
Insurance Industry ,
Market Participants ,
Marketing ,
Non-Fungible Tokens (NFTs) ,
Online Marketplace
Regulators once again offered piecemeal guidance, while focusing on risks and enforcement. Meanwhile, innovation and institutional adoption took off. Last year, Latham & Watkins sounded a hopeful note that 2020 would provide...more
1/22/2021
/ Biden Administration ,
Central Bank Digital Currency (CBDCs) ,
CFTC ,
Digital Assets ,
Enforcement Actions ,
Federal Reserve ,
FinCEN ,
No-Action Letters ,
OCC ,
Popular ,
Regulatory Requirements ,
Safe Harbors ,
Securities and Exchange Commission (SEC) ,
Securities Tokens ,
Token Sales
In a year-end change of course, the SEC identified the minimum steps that broker-dealers must take when acting as custodians of digital asset securities. On December 23, 2020, the US Securities and Exchange Commission (SEC)...more
1/13/2021
/ Asset Tokens ,
Blockchain ,
Broker-Dealer ,
Custody ,
Digital Assets ,
Distributed Ledger Technology (DLT) ,
Enforcement ,
Financial Industry Regulatory Authority (FINRA) ,
Market Participants ,
New Guidance ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act ,
SIFMA ,
Virtual Currency
The no-action relief applies to family offices with at least US$50 million in total assets (Institutional Family Offices) and requires broker-dealers seeking to rely on the relief to establish and maintain specific additional...more
The no-action letter is the first to expressly permit token transfer off-platform to non-users and conversion to fiat currency by token holders.
As crypto prices surge, we find ourselves in the midst of another crypto wave....more
In setting forth its rationale, FINRA observed that private placement retail communications reviewed by AdReg have “revealed significant and pervasive” violations of FINRA Rule 2210.
On October 28, 2020, the Financial...more
11/12/2020
/ Broker-Dealer ,
Client Communication ,
Comment Period ,
Financial Industry Regulatory Authority (FINRA) ,
Investment Company Act of 1940 ,
Private Offerings ,
Private Placements ,
Proposed Amendments ,
Qualified Institutional Buyers ,
Regulation S ,
Retail Investors ,
Rule 144A ,
Rule 2210 ,
Securities and Exchange Commission (SEC)
US Department of Justice’s sprawling report reveals regulatory enforcement priorities for cryptocurrencies and highlights multi-agency cooperation.
On October 8, 2020, the US Attorney General’s Cyber-Digital Task Force of...more
10/20/2020
/ AML/CFT ,
Cryptoassets ,
Cryptocurrency ,
Department of Justice (DOJ) ,
Digital Assets ,
Enforcement ,
Financial Regulatory Agencies ,
Information Reports ,
Popular ,
Securities and Exchange Commission (SEC) ,
Strategic Enforcement Plan ,
Suspicious Activity Reports (SARs)
The proposal would significantly impact finders by granting tailored exemptive relief to individuals engaging in limited capital raising activity.
Key Points:
..The Proposal would provide a conditional exemption that...more
The changes will have implications for the growing secondary market for non-listed securities.
On September 16, 2020, the US Securities and Exchange Commission (SEC) adopted amendments to Rule 15c2-11 (the amended Rule) of...more
Crypto-asset trading is a fast-growing part of the financial sector. Some countries have wholeheartedly embraced crypto-assets; others have been reticent to permit widespread adoption. Generally, countries have interpreted...more
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
The US OCC allows banks, with certain restrictions, to hold assets in reserve for stablecoin issuers.
On September 21, 2020, the US Office of the Comptroller of the Currency (OCC) issued Interpretive Letter #1172 (the...more
The changes would allow more individuals and institutions to invest in private offerings of unregistered securities.
On August 26, 2020, the US Securities and Exchange Commission (SEC) expanded the definitions of...more
As COVID-19 continues to disrupt routine operations, OCIE reminds broker-dealers and investment advisers of their ongoing obligations.
On August 12, 2020, the US Securities and Exchange Commission (SEC) Office of...more
In anticipation of LIBOR discontinuation, key US and UK regulators signal a shift toward examining transition progress.
After an initial phase of applying mostly verbal pressure, UK and US regulators are now taking a more...more
The SEC proposes a welcome and significant increase in the 13F reporting threshold from US$100 million to US$3.5 billion.
On July 10, 2020, the US Securities and Exchange Commission (SEC) released a proposed rule amendment...more
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
The guidance highlights certain issues identified by FINRA regarding member firm communications to retail investors in private placement offerings.
On July 1, 2020, the Financial Industry Regulatory Authority (FINRA)...more
In anticipation of LIBOR discontinuation, the SEC will begin examining transition progress.
Nearly a year after the US Securities and Exchange Commission’s (SEC’s) release of a Staff Statement on LIBOR Transition, the...more
In the wake of COVID-19, the SEC and FINRA are taking steps to support markets and market participants.
The US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority, Inc. (FINRA) continue...more
The report encourages the G20 to consider a broad set of supervisory principles when evaluating global stablecoin arrangements.
On April 14, 2020, the G20’s Financial Stability Board (FSB) published a consultation on the...more
SEC’s motion for a preliminary injunction is granted, prohibiting delivery of Telegram tokens to purchasers.
On March 24, the Court in the Southern District of New York sided with the SEC and granted an injunction...more
The amendments modernize, restructure, and streamline Rule 5110.
On March 20, 2020, the Financial Industry Regulatory Authority, Inc. (FINRA) published Regulatory Notice 20-10 (RN 20-10), which provides additional guidance...more