In its third action involving NFTs, the SEC targets a restaurant membership token tied to fundraising and promises of potential price appreciation for buyers....more
9/23/2024
/ Cease and Desist Orders ,
Corporate Counsel ,
Cryptoassets ,
Enforcement Actions ,
Howey ,
Investment Contract ,
Marketing ,
Membership Interest ,
Non-Fungible Tokens (NFTs) ,
Securities and Exchange Commission (SEC) ,
Settlement ,
Token Sales ,
Unregistered Securities
Recent Supreme Court administrative law rulings change the power dynamic between the executive and the judiciary in critical areas of statutory interpretation, enforcement, and immunity from legal challenge....more
7/15/2024
/ Administrative Authority ,
Administrative Procedure Act ,
Administrative Proceedings ,
Chevron Deference ,
Corner Post Inc v Board of Governors of the Federal Reserve System ,
Cryptoassets ,
Cryptocurrency ,
FinTech ,
Government Agencies ,
Judicial Authority ,
Jury Trial ,
Loper Bright Enterprises v Raimondo ,
SCOTUS ,
SEC v Jarkesy ,
Securities and Exchange Commission (SEC) ,
Seventh Amendment ,
Statute of Limitations ,
Statutory Authority ,
Statutory Interpretation
FIT21 would provide regulatory certainty for the US digital asset ecosystem, balancing support for innovation with consumer protection....more
5/30/2024
/ Blockchain ,
CFTC ,
Commodities ,
Consumer Protection Laws ,
Cryptocurrency ,
Decentralized Finance (DeFi) ,
Digital Assets ,
FinTech ,
Investment Contract ,
Non-Fungible Tokens (NFTs) ,
Pending Legislation ,
Rulemaking Process ,
Securities ,
Securities and Exchange Commission (SEC) ,
Stablecoins
The bipartisan bill seeks to foster innovation and promote US dollar dominance while protecting consumers and mitigating illicit finance risks.
On April 17, 2024, US Senators Cynthia Lummis from the Senate Banking...more
As federal regulation remains patchy, firms may want to consider a New York state charter as a potential avenue to expand digital asset offerings in a compliant manner.
On March 22, 2024, WisdomTree, Inc., a global asset...more
4/5/2024
/ Custody ,
Digital Assets ,
Exemptions ,
Fiduciary ,
FinTech ,
Investment Management ,
Investment Trust Companies ,
Market Participants ,
Money Transmitter ,
NYDFS ,
OCC ,
Stablecoins ,
State Charters ,
Subsidiaries
The legislation allows decentralized autonomous organizations to gain legal entity status and operate within the bounds of applicable law. ...more
4/2/2024
/ CFTC ,
Corporate Governance ,
Decentralized Autonomous Organization (DAO) ,
Ether ,
Ethereum ,
Governance Standards ,
Howey ,
Indemnification ,
Investment Contract ,
Legal Entities ,
Liability ,
Limited Liability ,
Market Participants ,
Membership Interest ,
Nonprofits ,
Securities Act of 1933 ,
Securities and Exchange Commission (SEC) ,
Service of Process
The SEC’s ambiguous rule could have a chilling effect both on decentralized finance and on the provision of liquidity to centralized crypto exchanges.
The Securities and Exchange Commission (SEC) adopted a new rule on...more
2/28/2024
/ Crypto Exchanges ,
Dealers ,
Decentralized Finance (DeFi) ,
Digital Assets ,
Financial Industry Regulatory Authority (FINRA) ,
Liquidity ,
Market Participants ,
New Rules ,
Registration Requirement ,
Securities and Exchange Commission (SEC) ,
Securities Dealers ,
Securities Exchange Act
SEC defines the phrase “as part of a regular business” to capture private funds and other market participants that take on liquidity-providing roles.
The Securities and Exchange Commission (SEC) adopted new rules that...more
2/26/2024
/ Dealers ,
Financial Industry Regulatory Authority (FINRA) ,
Government Securities ,
Liquidity ,
Market Participants ,
New Rules ,
Registration Requirement ,
Securities and Exchange Commission (SEC) ,
Securities Dealers ,
Securities Exchange Act ,
Securities Traders ,
SRO
The SEC’s long-awaited green light for spot bitcoin ETPs is welcomed by the market, but the ambivalent decision raises more questions than it answers.
On January 10, 2024, the Securities and Exchange Commission (SEC)...more
The proposed amendment seeks to modify the existing framework of FINRA Rule 2210 to accommodate the use of certain projections and targeted returns.
On November 13, 2023, the Financial Industry Regulatory Authority...more
The priorities highlight emerging and core risk areas for investment advisers, broker-dealers, and other entities, including cybersecurity and crypto assets.
On October 16, 2023, the Securities and Exchange Commission’s...more
11/3/2023
/ Broker-Dealer ,
Clearing Agencies ,
Compliance ,
Cryptoassets ,
Cybersecurity ,
FinTech ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Investment Companies ,
Market Participants ,
Marketing ,
Private Funds ,
SEC Examination Priorities ,
Securities and Exchange Commission (SEC)
Licensees, exchanges, and other market participants should prepare to comply with the listing, disclosure, capital, and other requirements that the new law imposes.
On October 13, 2023, California Governor Gavin Newsom...more
11/1/2023
/ Administrative Authority ,
Best Execution ,
Crypto Exchanges ,
Cryptoassets ,
Cryptocurrency ,
Department of Financial Protection and Innovation (DFPI) ,
Digital Assets ,
Financial Services Industry ,
Governor Newsom ,
Listing Rules ,
Market Participants ,
New Legislation ,
Regulatory Requirements ,
Stablecoins
The Proposed Guidance would require enhanced criteria for coin-listing and delisting procedures for New York-licensed virtual currency entities.
On September 18, 2023, the New York Department of Financial Services (DFS)...more
10/6/2023
/ Bitcoin ,
Corporate Governance ,
Cryptocurrency ,
Financial Services Industry ,
Guidance Update ,
Listing Rules ,
NYDFS ,
Popular ,
Stablecoins ,
Token Sales ,
Virtual Currency
In its second action involving NFTs, the SEC targets an offering tied to fundraising and promises of future value.
On September 13, 2023, the Securities and Exchange Commission (SEC) issued a cease-and-desist order (the...more
An appeals court panel rules that the SEC rejection of a proposed spot bitcoin ETP was arbitrary and capricious, opening the door for the potential launch of numerous ETPs in the near future.
On August 29, 2023, a...more
A federal court’s dismissal of claims against a decentralized cryptocurrency platform and its investors for the actions of scam token issuers is a case of first impression with wider significance.
On August 29, 2023, the...more
9/7/2023
/ Cryptocurrency ,
Decentralized Finance (DeFi) ,
Digital Platforms ,
Dismissals ,
Investors ,
Petition for Writ of Certiorari ,
Scams ,
Securities Act of 1933 ,
Securities Exchange Act ,
Smart Contracts ,
Token Sales ,
Unregistered Securities
In its first enforcement action involving NFTs, the SEC focused on issuer marketing that promised outsized returns on investment and platform building. On August 28, 2023, the Securities and Exchange Commission (SEC) issued a...more
8/31/2023
/ Cease and Desist ,
Civil Monetary Penalty ,
Disgorgement ,
Enforcement Actions ,
Misrepresentation ,
Non-Fungible Tokens (NFTs) ,
Securities ,
Securities Act of 1933 ,
Securities and Exchange Commission (SEC) ,
Securities Violations ,
Unregistered Securities
A bifurcated decision in a highly anticipated digital assets enforcement action may not provide the clarity that market participants want or need.
On July 13, 2023, Judge Analisa Torres of the US District Court for the...more
7/26/2023
/ Aiding and Abetting ,
Civil Monetary Penalty ,
Crypto Exchanges ,
Cryptocurrency ,
Digital Assets ,
Digital Platforms ,
Due Process ,
Enforcement Actions ,
Fair Notice ,
Institutional Investors ,
Investment Platforms ,
Personal Liability ,
Ripple ,
Securities Act of 1933 ,
Securities and Exchange Commission (SEC) ,
Securities Regulation ,
Securities Violations ,
Token Sales ,
Unregistered Securities
The viability of DAO structures draws attention after a judge declares that a decentralized autonomous organization is a “person” under the law.
On June 8, 2023, the US District Court for the Northern District of...more
The proposed bill sets forth a comprehensive framework for the digital asset ecosystem by bridging regulatory gaps, promoting innovation, and protecting consumers.
On June 2, 2023, Patrick McHenry, Chairman of the House...more
6/30/2023
/ Advisory Committee ,
Anti-Fraud Provisions ,
Anti-Manipulation Rule ,
CFTC ,
Commodity Exchange Act (CEA) ,
Consumer Protection Laws ,
Cryptoassets ,
Cryptocurrency ,
Decentralized Finance (DeFi) ,
Digital Assets ,
Disclosure Requirements ,
Environmental Social & Governance (ESG) ,
Investment Contract ,
Non-Fungible Tokens (NFTs) ,
Proposed Legislation ,
Registration Requirement ,
Regulatory Authority ,
Securities and Exchange Commission (SEC) ,
Stablecoins
Form 13F filers will need to file their first Form N-PX covering the period of July 1, 2023, to June 30, 2024, by August 31, 2024.
Rule 14Ad1 of the Securities Exchange Act of 1934 (Exchange Act), which was adopted by...more
Decentralization is the key innovation enabled by blockchain technology, and can have significant technological, economic, and legal implications for web3 companies and protocols. Decentralization remains hard to grasp and...more
The narrower M&A broker exemption supersedes the 2014 M&A broker no-action letter while leaving state-level restrictions and foreign M&A broker relief unaffected. On March 29, 2023, the Securities Exchange Act of 1934...more
5/25/2023
/ Broker-Dealer ,
Consolidated Appropriations Act (CAA) ,
EBITDA ,
Exemptions ,
Extraterritoriality Rules ,
Foreign Agents ,
Institutional Investors ,
M&A Brokers ,
No-Action Letters ,
Registration Requirement ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act
The CRPTO Act is intended to increase transparency and consumer protections, and reduce conflicts of interest, through heightened disclosures and penalties.
On May 5, 2023, New York Attorney General (NYAG) Letitia James...more
In a major Web3 trademark infringement case, NFT creators prevail over those with a bad-faith intent to profit.
On April 21, 2023, Yuga Labs, the original creators of the Board Ape Yacht Club (BAYC) non-fungible token...more
5/19/2023
/ Blockchain ,
Cybersquatting ,
Domain Names ,
Ethereum ,
Fair Use ,
Free Speech ,
Intellectual Property Protection ,
Lanham Act ,
Non-Fungible Tokens (NFTs) ,
Trademark Infringement ,
Trademark Litigation ,
Trademarks ,
Unclean Hands