Every year the Financial Institution Regulatory Authority (FINRA) issues its “Report on FINRA’s Examination and Risk Monitoring Program.” The Report covers issues noted during the prior year’s exams and topics that examiners...more
1/13/2023
/ Anti-Money Laundering ,
Best Execution ,
Books & Records ,
Cryptocurrency ,
Examination Priorities ,
Financial Crimes ,
Financial Industry Regulatory Authority (FINRA) ,
Financial Institutions ,
Financial Markets ,
Form CRS ,
Market Manipulation ,
Regulation Best Interest ,
Securities Transactions ,
Variable Annuities
Requiescat Diem. Launched with great fanfare three years ago as Libra, the Facebook/Meta-led blockchain stablecoin effort now called Diem announced January 31 that it will shut down and sell its assets to Silvergate Capital...more
In remarks this week at SEC Speaks, SEC Investor Advocate Rick Fleming mused that the “gamification” of securities trading might pose an undue risk that exploits a potential loophole in Regulation Best Interest (“Reg. BI”)....more
10/15/2021
/ Broker-Dealer ,
Cryptocurrency ,
GameStop ,
Gamification ,
Internet Memes ,
Investment Management ,
Regulation Best Interest ,
Regulation BI ,
Retail Investors ,
Securities and Exchange Commission (SEC) ,
SIFMA ,
Social Media ,
Stock Trades ,
Trading Policies
The People’s Bank of China (“PBOC”) announced this morning that it is banning crypto currencies and related services, including “trading, order matching, token issuance and derivatives for virtual currencies are strictly...more
9/24/2021
/ Bitcoin ,
China ,
Cryptocurrency ,
Digital Assets ,
Digital Currency ,
Enforcement Actions ,
Financial Instruments ,
Financial Regulatory Reform ,
Financial Services Industry ,
Investment Opportunities ,
Regulatory Oversight ,
Token Sales ,
Trading Restrictions ,
Virtual Currency
This past Tuesday, September 21, the chorus calling for more regulation over crypto reached a sort of crescendo.
The SEC -
Earlier, in September 14 testimony before the Senate Banking Committee [1], former CFTC and current...more
9/23/2021
/ Anti-Money Laundering ,
BSA/AML ,
Cryptocurrency ,
Digital Currency ,
Financial Services Industry ,
Popular ,
Regulatory Agenda ,
Regulatory Oversight ,
Securities and Exchange Commission (SEC) ,
Securities Regulation ,
Unregistered Securities ,
Virtual Currency
The price of Bitcoin recently topped $57,000. New York’s Attorney General issued an Investor Alert on Virtual Currency Risks, as did the SEC’s Division of Examinations....more
The Commodity Futures Trading Commission’s (“CFTC”) Final Interpretive Guidance on the “actual delivery” exception to regulatory jurisdiction for digital assets became effective June 24, 2020. See 85 Fed. Reg. 37734. The...more
Former Louisiana deputy sheriff and Russian resident Steven Seagal agreed to a Cease and Desist (“C&D”) Order by the SEC, finding violations of the non-touting provisions of Securities Act § 17(b) and imposing civil penalties...more
3/4/2020
/ Cease and Desist Orders ,
Celebrity Endorsements ,
Civil Monetary Penalty ,
Cryptocurrency ,
Digital Currency ,
Disgorgement ,
Enforcement Actions ,
Influencers ,
Initial Coin Offering (ICOs) ,
OCIE ,
Securities Litigation ,
Securities Violations ,
Social Media ,
Token Sales
The IRS this week announced that it is the process of sending out 10,000 letters during the next month, reminding taxpayers with crypto-currency accounts about their tax obligations arising from such transactions....more
The SEC recently issued an investor alert warning about crypto advisory and trading websites. The alert cautions investors to be especially wary of web-based crypto-currency sites with any...more
5/8/2019
/ Bitcoin ,
Criminal Prosecution ,
Cryptoassets ,
Cryptocurrency ,
Digital Currency ,
Enforcement Actions ,
Financial Crimes ,
Indictments ,
Money Laundering ,
Securities and Exchange Commission (SEC) ,
Trading Platforms ,
Websites ,
Wire Fraud
This week, the SEC’s Division of Investment Management issued a letter seeking industry and public input on custody issues arising from digital assets....more
Last week, SEC Enforcement staff lost a bid for a preliminary injunction against a prospective ICO in its pre-offering testing phase....more
12/3/2018
/ Blockchain ,
Cryptocurrency ,
Digital Currency ,
Distributed Ledger Technology (DLT) ,
Enforcement Actions ,
Initial Coin Offering (ICOs) ,
Preliminary Injunctions ,
Securities and Exchange Commission (SEC) ,
Securities Violations ,
Token Sales ,
Unregistered Securities
On November 8, the SEC filed its first settled enforcement action against cryptocurrency trading platform for operating as an unregistered exchange trading securities, in violation of the Securities Exchange Act of 1934....more
11/19/2018
/ Cryptocurrency ,
Cyber Crimes ,
Digital Currency ,
Enforcement Actions ,
Financial Markets ,
Initial Coin Offering (ICOs) ,
Investment Opportunities ,
Regulatory Oversight ,
Securities and Exchange Commission (SEC) ,
Securities Violations ,
Token Sales ,
Unregistered Securities ,
Virtual Currency
After Bitfinex, the CFTC issued its Proposed Interpretation on “Retail Commodity Transactions Involving Virtual Currency.” Proposed Interpretation, 82 Fed. Reg. 60335 (CFTC Dec. 20, 2017). Although the comment period closed...more
9/19/2018
/ Bitcoin ,
Blockchain ,
CFTC ,
Commodities ,
Cryptocurrency ,
Digital Currency ,
Distributed Ledger Technology (DLT) ,
Financial Instruments ,
Financial Markets ,
Initial Coin Offering (ICOs) ,
Interpretive Opinions ,
Jurisdiction ,
Popular ,
Regulatory Oversight ,
Token Sales ,
Virtual Currency
In a series of 2015 decisions, the CFTC determined that virtual currency is a commodity subject to its jurisdiction.
In a 2016 settled enforcement action, the CFTC took the position that an unregistered platform...more
9/18/2018
/ Bitcoin ,
Blockchain ,
CFTC ,
Commodities ,
Cryptocurrency ,
Digital Currency ,
Distributed Ledger Technology (DLT) ,
Financial Instruments ,
Financial Markets ,
Initial Coin Offering (ICOs) ,
Jurisdiction ,
Regulatory Oversight ,
Token Sales ,
Virtual Currency
The 2011 Dodd-Frank Act amended the CFTC’s jurisdiction to authorize regulation of “retail commodity transactions offered ‘on a leveraged or margined basis, or financed by the offeror, the counterparty, or a person acting in...more
9/17/2018
/ Bitcoin ,
Blockchain ,
CFTC ,
Commodities ,
Cryptocurrency ,
Digital Currency ,
Distributed Ledger Technology (DLT) ,
Financial Instruments ,
Financial Markets ,
Initial Coin Offering (ICOs) ,
Jurisdiction ,
Popular ,
Regulatory Oversight ,
Token Sales ,
Virtual Currency
Prior to Dodd-Frank, the CFTC and Courts recognized a distinction between traded futures contracts subject to CFTC jurisdiction and individualized non-exchange-traded contracts for the present sale of a cash commodity for...more
On September 11, FINRA announced its filing of an enforcement action accusing a Massachusetts broker of fraud and registration violations arising from his sale of an unregistered cryptocurrency, “HempCoin.” It is FINRA’s...more
On September 11, the SEC announced a pair of settled cryptocurrency enforcement actions. The first was against an unregistered digital-asset hedge fund. The second shut down an “ICO Superstore” as an unregistered...more
9/12/2018
/ Broker-Dealer ,
Cryptocurrency ,
Digital Currency ,
Enforcement Actions ,
Initial Coin Offering (ICOs) ,
Investment ,
Investment Company Act of 1940 ,
Investment Products ,
Offerings ,
Securities and Exchange Commission (SEC) ,
Token Sales ,
Unregistered Securities ,
Virtual Currency
This is Part 3 of a seven-part series of posts looking at some broad legal issues affecting crypto-currencies.
...more
9/12/2018
/ Bitcoin ,
Blockchain ,
Commodities ,
Cryptocurrency ,
Digital Currency ,
Distributed Ledger Technology (DLT) ,
Exchange-Traded Products ,
Financial Instruments ,
Financial Markets ,
Financial Transactions ,
Initial Coin Offering (ICOs) ,
Investment ,
Jurisdictional Determination (JD) ,
Money Transmitter ,
Popular ,
Regulatory Oversight ,
Retail Investors ,
Token Sales ,
Trading Platforms ,
Virtual Currency
This is Part 2 of a seven-part series of posts looking at some broad legal issues affecting crypto-currencies.
State and federal regulators, especially the SEC, have moved aggressively to halt unregistered initial coin...more
9/12/2018
/ Bitcoin ,
Cryptocurrency ,
Digital Currency ,
Disclosure Requirements ,
Enforcement Authority ,
Financial Instruments ,
Initial Coin Offering (ICOs) ,
Investment ,
Investment Contract ,
Popular ,
Registration Requirement ,
Regulatory Oversight ,
Regulatory Standards ,
Token Sales ,
Unregistered Securities ,
Virtual Currency
This is Part 1 of a seven-part series of posts looking at some broad legal issues affecting crypto-currencies.
DLT vs Territorial Law.
Fiat currencies have declared value stemming from governmental regulation. ...more
9/4/2018
/ Administrative Authority ,
Bitcoin ,
Blockchain ,
Cryptocurrency ,
Digital Currency ,
Distributed Ledger Technology (DLT) ,
Extraterritoriality Rules ,
Financial Regulatory Agencies ,
Forum Non Conveniens ,
Initial Coin Offering (ICOs) ,
Personal Jurisdiction ,
Popular ,
Regulatory Oversight ,
Virtual Currency