The Second Circuit recently revived a securities class action against the crypto exchange Binance Holdings Ltd., holding that plaintiffs plausibly alleged their transactions on the exchange were "domestic," as required by the...more
Two SEC commissioners dissented and urged the Commission to provide further guidance on non-fungible tokens ("NFTs")....more
9/7/2023
/ Cryptoassets ,
Cryptocurrency ,
Digital Assets ,
Enforcement Actions ,
Howey ,
Investment Contract ,
Investment Opportunities ,
Non-Fungible Tokens (NFTs) ,
Securities and Exchange Commission (SEC) ,
Securities Regulation ,
Securities Transactions ,
Securities Violations ,
Unregistered Securities
In Short -
The Situation: Recently, two judges in Southern District of New York were required to apply the Howey test in separate cases to decide whether sales of certain crypto assets were investment contracts, and thus...more
8/22/2023
/ Administrative Procedure Act ,
Cryptoassets ,
Cryptocurrency ,
Digital Assets ,
Due Process ,
Enforcement Actions ,
Howey ,
Investment Contract ,
Investment Opportunities ,
Popular ,
Ripple ,
Securities Act of 1933 ,
Securities and Exchange Commission (SEC) ,
Securities Regulation ,
Stablecoins
Federal court grants summary judgment to the SEC on its claim that sales of digital tokens constitute investment contracts under the Securities Act.
On September 30, 2020, U.S. District Judge Alvin Hellerstein granted...more
The Situation: The U.S. Securities and Exchange Commission ("SEC") issued a framework for market participants in assessing whether their digital assets-related activities involve the offer, sale, or distribution of investment...more
4/8/2019
/ Blockchain ,
Digital Assets ,
Enforcement Actions ,
Howey ,
Investment Contract ,
Investment Funds ,
No-Action Letters ,
No-Action Relief ,
Regulatory Oversight ,
Securities and Exchange Commission (SEC) ,
Token Sales ,
Tokenization
The Situation: Federal prosecutors have asserted that two cryptocurrencies sold in initial coin offerings ("ICOs") are "securities" for purposes of federal securities laws in a criminal indictment alleging fraud against the...more
9/24/2018
/ Criminal Prosecution ,
Cryptocurrency ,
Enforcement Actions ,
Howey ,
Indictments ,
Initial Coin Offering (ICOs) ,
Investment Contract ,
Material Misrepresentation ,
Real Estate Investments ,
Securities Act of 1933 ,
Securities Exchange Act ,
Securities Fraud ,
Subject Matter Jurisdiction ,
Token Sales
The Situation: The Director of the U.S. Securities and Exchange Commission's Division of Corporate Finance, William Hinman, has weighed in on when digital assets will be characterized as securities.
The Result: In...more
6/26/2018
/ Bitcoin ,
Cryptocurrency ,
Digital Assets ,
Ether ,
Goods or Services ,
Howey ,
Initial Coin Offering (ICOs) ,
Investment Adviser ,
Securities Act of 1933 ,
Securities and Exchange Commission (SEC) ,
Token Sales