All articles tagged with #securities laws
The SEC staff issued a statement clarifying how broker-dealers can demonstrate possession of crypto asset securities under Rule 15c3-3, emphasizing measures like access, assessment of blockchain technology, security protocols, and contingency planning to ensure custody and control, while noting that this guidance does not create new legal obligations.
The SEC's Chairman discusses 'Project Crypto,' emphasizing the importance of clear token classifications, applying the Howey test to determine securities status, and supporting legislative efforts to create a tailored regulatory framework for crypto assets, aiming to foster innovation while protecting investors.
Josh Wander, co-founder of 777 Partners, was charged with conspiracy and fraud for allegedly misrepresenting financial information and cheating lenders and investors out of nearly $500 million, with the firm facing multiple lawsuits and regulatory actions related to its financial practices and attempted acquisition of Everton FC.
Hester Peirce, head of the SEC's crypto task force, stated that digital versions of stocks, or 'tokenized' securities, are still subject to federal securities laws, emphasizing the need for market participants to comply with existing regulations.
In a speech at the 2023 Securities Enforcement Forum, the Chair of the Securities and Exchange Commission (SEC) emphasized the agency's commitment to combatting fraud and misconduct in the securities markets. The Chair highlighted the importance of economic realities in enforcing securities laws, stating that most crypto assets likely meet the definition of an investment contract and are subject to regulation. The SEC's enforcement program focuses on five themes: economic realities, accountability, high-impact cases, process, and positions of trust. The Chair also emphasized the need for cooperation, fairness, and holding individuals and firms accountable to maintain trust in the markets.
The U.S. Securities and Exchange Commission (SEC) has dropped its charges against Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen, clearing them of accusations of aiding and abetting the company in violating federal securities laws in its XRP transactions. The SEC will continue pursuing its claims against Ripple. This development comes after a judge ruled in July that Ripple had not violated federal securities laws in making XRP available to retail investors but had violated them in selling XRP directly to institutional investors. The SEC's pursuit of crypto firms has faced several setbacks, and these court battles may shape the U.S. government's approach to digital assets in the absence of regulatory laws from Congress.
SEC Chair Gary Gensler plans to assert his agency's authority over cryptocurrencies during a Senate Banking Committee hearing, despite recent court losses against Grayscale and Ripple. Gensler argues that most crypto assets meet the Howey test and should be regulated as securities. The SEC's legal defeats have emboldened other crypto companies facing lawsuits to reference these cases in their defense. LBRY, a blockchain-based payments network, has filed an appeal against the SEC's ruling that found it guilty of violating securities laws.
A federal judge has granted the U.S. Securities and Exchange Commission (SEC) permission to file an interlocutory appeal against her ruling that Ripple did not violate securities laws by making XRP available to retail traders. The SEC has until Friday to file the motion, and Ripple has until September 1 to respond. If the SEC wins its motion, it can then seek permission from an appeals court to file the actual appeal. The appeal process will not pause the rest of the case, but if approved, the circuit court may issue a stay on all proceedings until the appeal is resolved.
San Francisco 49ers CEO Jed York is facing two lawsuits alleging insider trading and violations of federal securities laws in connection with his role on the board of educational company Chegg Inc. The lawsuits claim that York and other directors concealed Chegg's involvement in helping college students cheat on online tests, resulting in a surge in revenue during the pandemic but a subsequent drop when students returned to in-person classes. York is accused of making $1.4 million from the sale of 20,000 shares at artificially inflated prices. Chegg has stated that the lawsuits are without merit.
Former CFTC lawyer, Mike Selig, provides insights into the recent XRP court ruling in the ongoing legal battle between Ripple and the SEC. Selig highlights that while XRP itself was not labeled as a security, the court ruling emphasized that it can potentially be sold as part of a security, subjecting it to securities laws under specific conditions. Selig suggests legislative action to address the regulatory void in the crypto industry and advocates for empowering regulatory agencies with expanded authority to develop specialized regulations tailored to the unique characteristics of crypto assets. Without legislative backing, the SEC's ability to effectively address the complexities of the crypto industry may be limited.
A recent ruling by Manhattan federal judge Analisa Torres regarding the digital token XRP, used by cryptocurrency company Ripple, is expected to have a significant impact on the cryptocurrency industry. The ruling suggests that small investors do not deserve the same level of protection as those working at hedge funds, causing concern and uncertainty in the $1.2 trillion crypto market. The ruling highlights the need for Congress to take control of crypto regulation and prevent potentially transformative businesses from moving to countries with more rational regulations, such as China.
Ripple's recent court victory against the Securities and Exchange Commission (SEC) has sparked hope within the cryptocurrency industry that it can limit SEC Chair Gary Gensler's control over the $1 trillion market. The ruling has prompted lawmakers to call for new regulations, despite Gensler's claims of authority. The decision could hinder ongoing enforcement actions by the SEC and embolden other crypto companies to resist registering their tokens as securities. The SEC has faced criticism over its regulatory approach, and this court ruling marks a significant setback for the agency. However, an appeal is still possible, and the SEC's position remains uncertain.
The U.S. Securities and Exchange Commission (SEC) has argued in a new filing that Coinbase was aware of the possibility of violating federal securities laws prior to the SEC's lawsuit against the cryptocurrency exchange. The SEC responded to Coinbase's claim that the agency lacked jurisdiction, stating that Coinbase had previously adopted the legal framework to determine compliance with securities laws. The SEC also opposed Coinbase's motion for judgment and asked the court to strike Coinbase's arguments. A hearing is scheduled for July 13 in the District Court for the Southern District of New York.
Coinbase has filed a motion to dismiss the United States Securities and Exchange Commission's (SEC) lawsuit, arguing that the plaintiff does not have a valid legal claim. The cryptocurrency exchange raised concerns about the SEC's interpretation of securities laws, stating that the agency was overstepping its legal authority. Coinbase's legal team claimed that the lawsuit violated the company's due process rights and constituted an abuse of process. The SEC alleged that Coinbase facilitated unregistered trading in 12 digital tokens deemed securities, but Coinbase argued that the SEC's application of securities laws deviated from existing legal frameworks.
Binance's US affiliate, Binance.US, has reportedly laid off staff following charges by the SEC for violating securities laws and an asset freeze request. The number of employees affected is unknown, but sources say that legal, compliance, and risk departments were among those dismissed. Binance.US CEO Brian Shroder wrote to employees that the layoffs were necessary to reduce the company's burn rate and ensure long-term viability. Binance.US has also announced plans to become a "crypto-only exchange" after its banking partners prepare to stop dollar withdrawals due to the SEC's "increasingly aggressive tactics."