Eleven spot bitcoin-based exchange-traded products (ETPs) were finally approved by the Securities and Exchange Commission (SEC) on January 10, 2024, after multiple such ETPs had been rejected by the SEC over the last ten...more
Katten's Financial Markets and Funds Quick Take is a monthly newsletter highlighting key noteworthy developments potentially affecting financial markets and funds....more
9/18/2023
/ Biden Administration ,
Bitcoin ,
Blockchain ,
China ,
Cryptoassets ,
Environmental Social & Governance (ESG) ,
False Claims Act (FCA) ,
Financial Industry Regulatory Authority (FINRA) ,
Financial Services Industry ,
Fund Managers ,
Loans ,
Non-Fungible Tokens (NFTs) ,
Securities ,
Securities and Exchange Commission (SEC) ,
UK ,
UK Brexit
The Securities and Exchange Commission acted arbitrarily and capriciously when it denied Grayscale Investment LLC’s proposed listing of a bitcoin exchange traded fund (ETP) in July 2022, ruled a unanimous three judge panel of...more
Daniel Davis Shares Views on Digital Asset Regulation During House Subcommittee Hearing -
In testimony before the US House of Representatives Subcommittee on Commodity Markets, Digital Assets, and Rural Development, Daniel...more
5/31/2023
/ Biden Administration ,
Bitcoin ,
Cryptoassets ,
Cryptocurrency ,
Environmental Social & Governance (ESG) ,
European Parliament ,
Financial Conduct Authority (FCA) ,
HM Treasury ,
New York ,
Non-Fungible Tokens (NFTs) ,
Privacy Laws ,
Securities and Exchange Commission (SEC) ,
State Privacy Laws ,
UK
State-chartered crypto banking entities and other crypto financial institutions will now be subject to a "transparent and equitable framework" when applying for direct access to the Federal Reserve's payment systems...more
Any Federal Deposit Insurance Corporation (FDIC)-supervised institution that is considering engaging in crypto-related activity must now notify the FDIC of its intent and provide all necessary information to create a dialogue...more
Developments continue at a frenetic pace in the crypto industry. Issues barely on the radar screen 18 months ago have come front and center in today’s headlines. Areas with relatively small market capitalizations a year ago...more
9/14/2021
/ Bitcoin ,
Blockchain ,
CFTC ,
Cryptocurrency ,
Decentralized Finance (DeFi) ,
Digital Currency ,
Financial Instruments ,
Financial Markets ,
Financial Services Industry ,
Popular ,
Securities and Exchange Commission (SEC) ,
Virtual Currency
On June 13, Louisiana passed the Virtual Currency Businesses Act (VCBA), becoming the second state to enact a stand-alone virtual currency law and the first state to base virtual currency licensing requirements on the Uniform...more
A proprietary trading firm was sanctioned by a sixth futures-industry regulator for purported spoofing trades by one of three employees many years ago. For the employees’ aggregate alleged misconduct, the firm was first...more
3/3/2020
/ Bitcoin ,
Broker-Dealer ,
CFTC ,
Chicago Mercantile Exchange (CME) ,
Cryptocurrency ,
Enforcement Actions ,
ETFs ,
Financial Industry Regulatory Authority (FINRA) ,
Proposed Rules ,
Sanctions ,
Securities and Exchange Commission (SEC) ,
Spoofing
The New York State Department of Financial Services proposed a self-certification regime for the approval of new digital coins by licensed virtual currency firms similar to the process applied by the Commodity Futures Trading...more
12/17/2019
/ Bitcoin ,
BitLicense ,
Broker-Dealer ,
CFTC ,
Cryptoassets ,
Cryptocurrency ,
Cybersecurity ,
Distributed Ledger Technology (DLT) ,
Final Rules ,
Financial Institutions ,
Initial Coin Offering (ICOs) ,
NYDFS ,
Regulatory Requirements ,
Securities and Exchange Commission (SEC) ,
Self-Certification ,
Swap Dealers ,
Virtual Currency
A broker-dealer and its chief executive officer settled charges brought in 2017 by the Securities and Exchange Commission that the firm facilitated manipulative conduct by a customer, despite being alerted by regulators and...more
10/15/2019
/ Bitcoin ,
Broker-Dealer ,
CFTC ,
Civil Monetary Penalty ,
Derivatives ,
Enforcement Actions ,
Enforcement Guidance ,
ETFs ,
Ether ,
Executive Orders ,
Financial Conduct Authority (FCA) ,
Gag Orders ,
IRS ,
Misappropriation ,
National Futures Association ,
Price Manipulation ,
Respondeat Superior ,
Securities and Exchange Commission (SEC) ,
Spoofing ,
Virtual Currency ,
Wash Sale Rules
A clearing organization for futures and securities was sanctioned US $20 million in aggregate by the Commodity Futures Trading Commission and the Securities and Exchange Commission for allegedly not having and following...more
9/10/2019
/ Bitcoin ,
CFTC ,
Compliance ,
Criminal Prosecution ,
Cryptocurrency ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Financial Markets ,
Initial Coin Offering (ICOs) ,
National Futures Association ,
NYDFS ,
OCC ,
Policies and Procedures ,
Putative Class Actions ,
Risk Management ,
Securities and Exchange Commission (SEC) ,
Spoofing ,
Summary Judgment
Two food giants agreed to resolve charges brought by the Commodity Futures Trading Commission that they manipulated or attempted to manipulate prices of the Chicago Board of Trade’s December 2011 wheat futures contract and...more
8/19/2019
/ Amended Rules ,
Bitcoin ,
Blockchain ,
CFTC ,
Commodity Futures Contracts ,
Consent Order ,
Cryptocurrency ,
Enforcement Actions ,
Financial Industry Regulatory Authority (FINRA) ,
Initial Coin Offering (ICOs) ,
NYDFS ,
Price Manipulation ,
Registration Requirement ,
Securities and Exchange Commission (SEC)
Last week a Canada-based social media company answered charges filed against it by the Securities and Exchange Commission in June 2019 that alleged its 2017 initial sale of digital tokens constituted an unlawful securities...more
8/13/2019
/ Bitcoin ,
Blockchain ,
Cryptocurrency ,
Digital Assets ,
Enforcement Actions ,
Financial Conduct Authority (FCA) ,
Financial Industry Regulatory Authority (FINRA) ,
Initial Coin Offering (ICOs) ,
Securities and Exchange Commission (SEC) ,
Token Sales ,
UK ,
Virtual Currency
The United Kingdom’s Financial Conduct Authority proposed to ban the marketing and sale in or from the UK to retail persons of derivatives and exchange-traded notes based on cryptocurrencies and utility digital tokens,...more
7/9/2019
/ Bitcoin ,
Blockchain ,
CFTC ,
Cryptoassets ,
Cryptocurrency ,
Derivatives ,
Distributed Ledger Technology (DLT) ,
Financial Conduct Authority (FCA) ,
Financial Industry Regulatory Authority (FINRA) ,
Hong Kong ,
Margin Requirements ,
Securities and Exchange Commission (SEC) ,
Spoofing ,
Token Sales ,
Utility Tokens ,
Virtual Currency
A trading firm agreed to settle charges brought both by the Commodity Futures Trading Commission and the Chicago Board of Trade that trading activities it engaged in during pre-opening market periods constituted wash sales....more
7/2/2019
/ Bitcoin ,
CFTC ,
Commodity Exchange Act (CEA) ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Regulatory Requirements ,
Self-Regulatory Organizations ,
Settlement ,
Spoofing ,
Swap Dealers ,
Whistleblowers
New York regulators continued an aggressive approach against certain entities engaged in virtual currency businesses when the state's Attorney General’s office obtained an ex parte order precluding companies associated with a...more
4/30/2019
/ Bitcoin ,
BitLicense ,
CFTC ,
Commodity Exchange Act (CEA) ,
Cryptoassets ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Financial Industry Regulatory Authority (FINRA) ,
Financial Instruments ,
FinTech ,
Foreign Corrupt Practices Act (FCPA) ,
LabCFTC ,
NYDFS ,
NYSE ,
Proposed Rules ,
Securities and Exchange Commission (SEC) ,
Spoofing ,
Virtual Currency ,
Wire Fraud
The UK Financial Conduct Authority issued proposed guidance concluding that only security tokens among the three principal types of cryptoassets are under the regulator’s oversight umbrella. Cryptocurrencies and utility...more
1/29/2019
/ Bitcoin ,
Consultation ,
Cryptoassets ,
Cryptocurrency ,
ETFs ,
Financial Conduct Authority (FCA) ,
Financial Industry Regulatory Authority (FINRA) ,
Initial Coin Offering (ICOs) ,
Money Transmitter ,
SEC Examination Priorities ,
UK
The Securities and Exchange Commission’s view that most cryptoassets issued as part of initial coin offerings and presales to ICOs are securities was challenged by a federal court in California when it denied the agency’s...more
12/4/2018
/ Bitcoin ,
Crypto Exchanges ,
Cryptoassets ,
Disruptive Trading Practices ,
FinTech ,
Iran ,
LabCFTC ,
Mexico ,
Office of Foreign Assets Control (OFAC) ,
Ransomware ,
Securities and Exchange Commission (SEC) ,
Singapore ,
Spoofing
During the prior two weeks, three financial authorities in the United Kingdom as well as the Hong Kong Securities and Futures Commission issued reports assessing distributed ledger technology and risks associated with the...more
11/5/2018
/ Accredited Investors ,
Bitcoin ,
Cryptoassets ,
Cryptocurrency ,
Derivatives ,
Enforcement ,
Enforcement Actions ,
Financial Conduct Authority (FCA) ,
Financial Industry Regulatory Authority (FINRA) ,
Futures ,
Hong Kong ,
Hong Kong Securities and Futures Commission (HKSFC) ,
Initial Coin Offering (ICOs) ,
Prudential Regulation Authority (PRA) ,
Retail Investors ,
UK
The Commodity Futures Trading Commission obtained orders from a federal court in New York concluding its first-filed enforcement action against persons for bitcoin fraud. However, the outcome of an unrelated action having...more
10/22/2018
/ Algorithmic Trading ,
Bitcoin ,
CFTC ,
Corporate Fines ,
Cryptocurrency ,
Cyber Attacks ,
Dodd-Frank ,
Enforcement Actions ,
Fraud ,
Internal Controls ,
Regulation AT ,
Restitution ,
Suspicious Activity Reports (SARs)
An international bank settled an enforcement action brought by the Commodity Futures Trading Commission for spoofing. However, in the process, the CFTC went out of its way to laud the bank for self-reporting the incident, as...more
10/15/2018
/ Banks ,
Bitcoin ,
CFTC ,
Cooperation ,
Cryptocurrency ,
Cyber Attacks ,
Enforcement Actions ,
Financial Conduct Authority (FCA) ,
Financial Institutions ,
Self-Reporting ,
Spoofing ,
UK
The Commodity Futures Trading Commission revised its rule related to the responsibilities of chief compliance officers of futures commission merchants, swap dealers and major swap participants, as well as the obligations of...more
8/28/2018
/ Bitcoin ,
CFTC ,
Chief Compliance Officers ,
Enforcement Actions ,
Exchange-Traded Products ,
Financial Industry Regulatory Authority (FINRA) ,
Foreign Corrupt Practices Act (FCPA) ,
Regulation SHO ,
Reporting Requirements ,
Securities ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Smaller Reporting Companies ,
Virtual Currency
For the second time this year, a Commodity Futures Trading Commission-registered futures commission merchant and National Futures Association member was sanctioned by both regulators for allegedly not supervising post-trade...more
BROKER-DEALER -
SEC Disapproves BZX Proposed Rule Change to List Shares of Bitcoin-Based Exchange-Traded Product -
On July 26, the Securities and Exchange Commission disapproved a Bats BZX Exchange proposed rule change...more
7/30/2018
/ Alternative Investment Fund Managers Directive (AIFMD) ,
Bitcoin ,
Broker-Dealer ,
CFTC ,
Corporate Governance ,
EU Passport ,
Investment Adviser ,
Packaged Retail And Insurance-Based Investment Products (PRIIPS) ,
Prudential Regulation Authority (PRA) ,
Securities and Exchange Commission (SEC) ,
UCITS ,
UK Brexit