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
Token pre-sale agreements are a popular type of financing instrument among start-ups in the blockchain space. Latham & Watkins attorneys explore the initial impact of SEC v. Kik on the use of token pre-sale agreements and...more
9/6/2019
/ Automated Convertible Note (ACN) ,
Blockchain ,
Capital Formation ,
Capital Raising ,
Enforcement Actions ,
Popular ,
Pre-Sale Agreements ,
Private Sales ,
Publicly-Traded Companies ,
Securities and Exchange Commission (SEC) ,
Securities Transactions ,
Securities Violations ,
Security Token Offering (STOs) ,
Simple Agreement for Future Tokens (SAFT) ,
Startups ,
Token Sales
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
SEC issues cease-and-desist orders for unregistered token presales and anti-touting violations.
Not content to let the dog days of summer slip by, the US Securities and Exchange Commission (SEC) recently issued two...more
8/27/2019
/ Accredited Investors ,
Blockchain ,
Cease and Desist Orders ,
Civil Monetary Penalty ,
Cryptocurrency ,
Initial Coin Offering (ICOs) ,
Market Participants ,
Private Placements ,
Regulation D ,
Regulation S ,
Safe Harbors ,
Securities and Exchange Commission (SEC) ,
Securities Violations ,
Unregistered Securities
The SEC issues second no-action letter for a digital token, but will “utility” token offerings reach the next level?
Gamers, rejoice! In only its second no-action letter to date for digital tokens, the SEC cleared the way...more
7/30/2019
/ Anti-Money Laundering ,
BSA/AML ,
Digital Currency ,
Ether Tokens ,
Ethereum ,
Gaming ,
Howey ,
No-Action Letters ,
Popular ,
Regulation D ,
Securities Act of 1933 ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act ,
Utility Tokens
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
The SEC’s Regulation Best Interest has important implications for institutionally focused broker-dealers and investment bankers.
On June 5, 2019, the US Securities and Exchange Commission (SEC) adopted Regulation Best...more
7/8/2019
/ Best Interest Standard ,
Broker-Dealer ,
Conflicts of Interest ,
Duty of Care ,
Fiduciary Duty ,
Financial Services Industry ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Regulation BI ,
Retail Investors ,
Securities and Exchange Commission (SEC)
The new initiative promises standard settlements for qualifying self-reported violations.
On January 28, 2019, the Financial Industry Regulatory Authority (FINRA) issued Regulatory Notice 19-04 announcing its 529 Plan...more
Recent actions reinforce the SEC’s commitment to applying traditional securities markets regulation in the cryptocurrency markets.
The US Securities and Exchange Commission (SEC, or the Commission) recently issued a public...more
The settled order is the first SEC action charging a seller of digital tokens as an unregistered broker-dealer.
On September 11, 2018, the U.S. Securities and Exchange Commission (SEC) announced a settled order instituting...more
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) in 2017 and...more
9/19/2018
/ Bitcoin ,
Blockchain ,
CFTC ,
Commodities ,
Cryptocurrency ,
Currency Control ,
Initial Coin Offering (ICOs) ,
Popular ,
Securities ,
Securities and Exchange Commission (SEC) ,
Token Sales ,
Tokenization ,
Virtual Currency
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
Proposal seeks to clarify and enhance obligations applicable to a broker-dealer’s retail customer interactions, but may raise more questions than answers.
The Securities and Exchange Commission (SEC) proposed for public...more
Best execution is currently a hot topic for global regulators and the past year has seen notable regulatory focus in this area. Amid this development, firms are recommended to review their global best execution compliance...more
How should broker-dealers, investment advisers, and other registered firms in the US, UK, and Hong Kong address cryptocurrencies in their compliance programs?
Originally published on bloombergbna.com on April 16,...more
The SEC’s latest enforcement action and its Chairman’s statement clarify the application of securities laws to ICOs and cryptocurrency markets.
Introduction -
On December 11, 2017, the US Securities and Exchange...more
US and EU authorities have finally moved to solve the cross-border issues arising from MiFID II rules on research unbundling.
Key Points:
- The US SEC has published three temporary “no action” letters, which are...more
SEC’s investigative report sends clear message that virtual transactions using innovative technologies are subject to the application of securities laws.
Introduction -
On July 25, 2017, the US Securities and Exchange...more
7/28/2017
/ Blockchain ,
Distributed Ledger Technology (DLT) ,
Enforcement Actions ,
FinTech ,
Initial Coin Offering (ICOs) ,
Market Participants ,
Popular ,
Securities Act of 1933 ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act ,
Token Sales
Regulators responded to a narrow question about trading bitcoin-based securities, with orders that should not limit innovation in bitcoin technologies.
On March 10, 2017, the US Securities and Exchange Commission (SEC)...more
The proposed consolidated rules bifurcate the representative-level examination program and introduce greater flexibility in obtaining and maintaining registrations.
On March 8, 2017, the Financial Industry Regulatory...more
Placement agents to private funds who seek investments by state and local pension plans must comply with restrictions on political contributions and related activities.
On August 25, 2016, the Securities Exchange...more
While the new rules may provide a measure of relief to certain entities that engage in a limited subset of broker-dealer activities, significant compliance requirements continue to apply.
On August 18, 2016, the U.S....more
The action underscores the need for investment advisers and broker-dealers to maintain robust policies and controls when utilizing third-party contractors.
On May 27, 2016, the Securities and Exchange Commission (SEC)...more
The action may have significant implications for PE advisers performing brokerage services; highlights SEC’s focus on advisers receiving transaction-based compensation.
On June 1, 2016, the Securities and Exchange...more
6/29/2016
/ Broker-Dealer ,
Investment Advisers Act of 1940 ,
Management Fees ,
Neither Admit Nor Deny Settlements ,
Offsets ,
Portfolio Companies ,
Private Equity ,
Private Funds ,
Registration Requirement ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act ,
Transaction-Based Compensation
Broker-dealers with historical or ongoing instances of non-compliance with the SEC’s Customer Protection Rule are encouraged to self-report by November 1, 2016.
On June 23, 2016, the Securities and Exchange...more
6/29/2016
/ Broker-Dealer ,
Compliance ,
Cooperation ,
Customer Protection Rule ,
Financial Industry Regulatory Authority (FINRA) ,
Individual Accountability ,
OCIE ,
Section 15(c) ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act ,
Self-Reporting