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World's Largest Cryptocurrency Exchange Wins Dismissal of Class-Action Lawsuit

On March 31, a New York federal court dismissed a proposed securities class-action lawsuit filed against Binance, the world's largest cryptocurrency exchange. The lawsuit, one of a host of similar actions brought against...more

John Coates Calls for SPAC Myth-Busting

In a recent interview with Law360 , Harvard Law Professor and former U.S. Securities and Exchange Commission official John Coates expressed the need for regulators to be more aggressive in disputing myths perpetuated by the...more

FINRA Issues Guidance Clarifying Liability for Chief Compliance Officers

On March 17, the Financial Industry Regulatory Authority (FINRA) issued a notice, clarifying when chief compliance officers (CCOs) will face liability as supervisors under FINRA Rule 3110. Under Rule 3110, member firms are...more

FinCEN Implores Vigilance From Financial Institutions in Anticipation of Attempted Russia Sanctions Evasion

Following the significant sanctions and other restrictions imposed by the United States and its global allies resulting from the Russian Federation's invasion of Ukraine, the Financial Crimes Enforcement Network (FinCEN)...more

Biden Signs Executive Order on Cryptocurrency

On March 9, President Biden signed an Executive Order (the Order) to establish the first comprehensive federal digital asset strategy for the U.S., which would promote digital asset innovation while balancing benefits and...more

FINRA Report Highlights New Topics and Emerging Risks for 2022

On February 9, FINRA published its 2022 Report on FINRA’s Examination and Risk Management Program (2022 Report), an authoritative resource for member firms to evaluate and, where necessary, enhance their compliance programs...more

SEC Settlement Shows Commission’s Willingness to Waive Penalties for Investigatory Targets Focusing on Corrective Action

On January 28, the Securities and Exchange Commission (SEC or Commission) issued a press release, announcing the settlement of various fraud charges against a private technology company in light of their “significant remedial...more

SEC Settlement Shows Commission's Willingness to Waive Penalties for Investigatory Targets Focusing on Corrective Action

On January 28, the Securities and Exchange Commission (SEC or Commission) issued a press release, announcing the settlement of various fraud charges against a private technology company in light of their “significant remedial...more

SEC's New Insider "Shadow Trading" Theory Survives Its First Test

The Securities and Exchange Commission (SEC) is testing the bounds of insider trading laws (as previously reported here), and it recently survived the first challenge to its newest theory. On January 14, the U.S. District...more

President Biden’s Working Group on Financial Markets Issues Report on Stablecoins

On November 1, the President’s Working Group on Financial Markets (PWG), along with the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency, issued a “Report on Stablecoins” (Report) that...more

SEC Proposed Form PF Amendments Kick Off SEC Chair Gensler's Push for Increased Transparency for Private Funds

On January 26, the SEC approved proposed amendments to Investment Advisers Act Rule 204(b)-1 and Form PF to require prompt reporting of certain extraordinary events that may signal distress or market instability. The...more

Second Circuit Affirms De Maison Disgorgement Amount as Reasonable

Executive Summary - On December 16, 2021, the Second Circuit affirmed a lower court’s judgment, ordering disgorgement and imposing a civil penalty involving a defendant (Ms. de Maison) charged with participating in a...more

SDNY Backs SEC Whistleblower Protections, Clarifying Their Scope

On November 17, a federal judge in the Southern District of New York ruled that a sports memorabilia company violated the Securities and Commission’s (SEC) whistleblower protections when it sued to silence and intimidate...more

SEC Investment Adviser Examinations Highlight Errors

The U.S. Securities and Exchange Commission (SEC) recently issued two risk alerts, highlighting issues found at investment firms that could lead to sanctions, following recent examinations of firms and advisers. Advisers have...more

President Biden's Working Group on Financial Markets Issues Report on Stablecoins

On November 1, the President’s Working Group on Financial Markets (PWG), along with the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency, issued a “Report on Stablecoins” (Report) that...more

SEC Outlines Division of Examinations Priorities at Annual "SEC Speaks" Forum

Leaders from the Securities and Exchange Commission’s (SEC) Division of Examinations (Division) discussed the agency’s priorities earlier this month at the Practising Law Institute’s (PLI) annual “SEC Speaks” event. The...more

Circuit Decision Provides SEC Roadmap to Seek Disgorgement Post-Liu

On October 12, the Fifth Circuit Court of Appeals affirmed a district court’s decision in SEC v. Blackburn, awarding disgorgement to alleged victims of a penny stock fraud scheme subject to SEC enforcement action. This...more

New York Doubles Down on Regulatory Scrutiny of Crypto Lending Firms

On October 18, New York Attorney General Letitia James issued cease-and-desist letters directing two virtual currency lending platforms to cease “unregistered and unlawful” lending activities in New York State within 10 days,...more

SEC Signals Shift Away From "Neither Admit Nor Deny" Approach to Settling Enforcement Actions

The Securities and Exchange Commission (SEC) plans to return to a policy, requiring companies to admit wrongdoing to settle certain enforcement actions, according to the SEC Division of Enforcement Director Gurbir Grewal. ...more

SEC Focused on Enforcement in the Crowdfunding Space

Following last year’s drastic increase in the annual limits permitted for crowdfunding campaigns, the Securities and Exchange Commission (SEC) has increased its focus on the regulation of crowdfunding, particularly for...more

State Regulators Block Celsius From Offering Interest-Bearing Cryptocurrency Accounts

State regulatory agencies in Alabama, Kentucky, New Jersey, and Texas have increased their efforts to challenge digital asset-related products by issuing cease-and-desist or “show cause” orders against New Jersey-based...more

Securities & Exchange Commission Tests New Insider Trading Theory

The Securities & Exchange Commission (SEC) is experimenting with a new theory of liability that potentially expands the bounds of the insider trading laws. Specifically, the SEC is requesting that a California court deem the...more

New FINRA Guidance Suggests Increased Scrutiny of Member Firms’ Relationships with Third-Party Vendors

Who Needs to Know FINRA member firms. - Why It Matters On August 13, the Financial Industry Regulatory Authority released a regulatory notice to member firms, clarifying their existing obligations on the supervision of...more

Gensler Speaks on Crypto at Aspen Security Forum

On August 3, Securities and Exchange Commission (SEC) Chairman Gary Gensler spoke on cryptocurrencies at the Aspen Security Forum — his first significant remarks regarding cryptocurrency since his confirmation in April....more

SEC Division of Examinations Issues Risk Alerts on Cross Trades and Wrap Fee Programs

On July 21, the Securities and Exchange Commission’s Division of Examinations (Division) released two separate “risk alerts,” encouraging investment advisers to implement written policies and procedures or review existing...more

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