The Staff clarifies that protocol staking does not qualify as a security under the Howey Test, clearing the way for market participants to engage in staking....more
6/16/2025
/ Blockchain ,
Crypto Exchanges ,
Cryptoassets ,
Digital Assets ,
Howey ,
Investment Contract ,
Market Participants ,
Regulatory Requirements ,
Securities Act of 1933 ,
Securities Exchange Act ,
Securities Regulation ,
Stablecoins ,
Unregistered Securities
The SEC’s September 17, 2024, actions signal its commitment to penalize non-compliance, while encouraging market participants to self-report violations.
On September 17, 2024, the US Securities and Exchange Commission...more
9/30/2024
/ Compliance ,
Cooperation ,
Enforcement Actions ,
Filing Requirements ,
Institutional Investors ,
Investment Adviser ,
Investment Management ,
Market Participants ,
Required Forms ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act ,
Self-Reporting
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 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 bipartisan bill would provide a federal safe harbor for non-custodial blockchain service providers from state money transmission and digital asset licensing laws.
On March 23, 2023, US House of Representatives...more
3/31/2023
/ Bank Secrecy Act ,
BitLicense ,
Blockchain ,
Cryptoassets ,
Cryptocurrency ,
Custody ,
FATF ,
FinCEN ,
Market Participants ,
Preemption ,
Proposed Legislation
On March 28, 2022, the US Securities and Exchange Commission (SEC) proposed rules (Proposing Release) that would require securities market participants that engage in dealer-like activities - such as a proprietary trading...more
The Clarity for Digital Tokens Act of 2021 would give token issuers the guardrails they need to innovate with far less regulatory anxiety.
US Securities and Exchange Commission (SEC) Commissioner Hester Peirce has always...more
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
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 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
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
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
1/28/2020
/ Cryptoassets ,
Cryptocurrency ,
Digital Assets ,
FinTech ,
Howey ,
Market Participants ,
New Guidance ,
No-Action Letters ,
Regulatory Standards ,
Securities ,
Securities and Exchange Commission (SEC) ,
Token Sales
The extension benefits market participants in the US seeking to comply with EU MiFID II research rules, but significant issues remain.
Key Points:
..The no-action relief has been extended for three additional years from...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
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