By

Daniel Engoren

27 July 2021

Enhanced Focus on Digital Asset Intermediaries by SEC, Congress, and State Securities Regulators

Given the substantial growth in digital asset investments this year, intermediaries offering trading and lending services are now the target of regulatory and enforcement focus that we expect will continue in the coming months and years. Recent examples of this increased scrutiny of digital asset service providers and intermediaries include… Read More

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01 October 2020

SEC Issues No-Action Letter for Certain Alternative Trading Systems Trading Digital Asset Securities

On September 25, the U.S. Securities and Exchange Commission (SEC)’s Division of Trading and Markets issued its first no-action letter (Letter) to the Financial Industry Regulatory Authority, Inc. (FINRA),1 related to digital asset securities. Based on the Letter, the SEC staff (Staff) would not recommend enforcement action pursuant to … Read More

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17 June 2020

FINRA Issues its 2020 Artificial Intelligence Report for Industry Comment

On June 10, the Financial Industry Regulatory Authority (FINRA) released its Artificial Intelligence (AI) in the Securities Industry Report (Report), a culmination of a two-year review by FINRA’s Office of Financial Innovation to learn about the emerging challenges confronted by broker-dealers (Firms) and other market participants as they introduce AI-based … Read More

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14 February 2020

SEC Commissioner Peirce Proposes Blockchain Token Safe Harbor

On February 6, 2020, U.S. Securities and Exchange Commission (SEC or Commission) Commissioner Hester M. Peirce (Commissioner Peirce) gave a speech describing the need for more clarity on application of the securities laws to the offer and sale of blockchain tokens or digital assets. As part of the speech, she … Read More

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17 January 2020

SEC Warns Investors Regarding Digital Asset Initial Exchange Offerings

On January 14, 2020, the U.S. Securities and Exchange Commission (SEC) Office of Investor Education and Advocacy published an investor alert (Alert) regarding initial exchange offerings (IEOs), a type of digital asset fundraising facilitated by online trading platforms.1 Although the Alert is directed at investors, it provides important information … Read More

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16 October 2019

U.S. Financial Regulators Clarify Oversight of AML/CFT Obligations in Connection With Digital Asset Activities

On October 11, 2019, the leaders of the U.S. Commodity Futures Trading Commission (CFTC), the Financial Crimes Enforcement Network (FinCEN) and the U.S. Securities and Exchange Commission (SEC) (together, the Agencies) issued a joint statement highlighting the application of anti-money laundering and countering the financing of terrorism (AML/CFT) obligations under … Read More

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12 July 2019

Digital Asset Securities: Joint SEC and FINRA Statement Aimed at Broker-Dealer Custody

On July 8, 2019, the long-awaited statement (Statement) on custody of digital asset securities was released jointly by the staffs (Staffs) of the U.S. Securities and Exchange Commission (SEC) Division of Trading and Markets and the Financial Industry Regulatory Authority (FINRA).1  The Statement is based on industry discussions with … Read More

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29 April 2019

SEC FinHub’s Digital Asset Framework: A Guide for Issuers and Secondary Trading Markets

On April 3, the U.S. Securities and Exchange Commission (SEC)’s Strategic Hub for Innovation and Financial Technology (FinHub or Staff) released its much-anticipated guidance, the Framework for “Investment Contract” Analysis of Digital Assets (Framework), regarding its views on factors to consider in applying the Howey test to digital assets. In … Read More

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18 February 2019

Blockchain Technology: SEC Commissioner Peirce Presents an Opportunity to Rethink Regulation

On February 8, 2019, U.S. Securities and Exchange (SEC) Commissioner Hester Peirce delivered a speech addressing the relationship between technological innovation and regulation, in particular addressing some of the pending regulatory challenges surrounding blockchain and digital assets.1 The key takeaways from Commissioner Peirce’s speech, titled “Regulation: A View Read More

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21 November 2018

The Security Token Story: SEC Reveals Act III — Registered Digital Assets — and Reminds Market Actors of Acts I (Investment Vehicles) & II (Secondary Trading)

On November 16, the U.S. Securities and Exchange Commission (SEC) announced its first enforcement actions against issuers of initial coin offerings solely for failing to register the offerings in violation of the federal securities laws since Munchee (i.e., without allegations of fraud). Unlike the Munchee order, these settlements impose penalties … Read More

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