In anticipation of LIBOR discontinuation, the SEC will begin examining transition progress.
Nearly a year after the US Securities and Exchange Commission’s (SEC’s) release of a Staff Statement on LIBOR Transition, 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
The report encourages the G20 to consider a broad set of supervisory principles when evaluating global stablecoin arrangements.
On April 14, 2020, the G20’s Financial Stability Board (FSB) published a consultation on the...more
SEC’s motion for a preliminary injunction is granted, prohibiting delivery of Telegram tokens to purchasers.
On March 24, the Court in the Southern District of New York sided with the SEC and granted an injunction...more
The amendments modernize, restructure, and streamline Rule 5110.
On March 20, 2020, the Financial Industry Regulatory Authority, Inc. (FINRA) published Regulatory Notice 20-10 (RN 20-10), which provides additional guidance...more
As COVID-19 disruptions unfold, FINRA has granted temporary relief regarding alternate working arrangements for broker-dealer employees.
On March 9, 2020, the Financial Industry Regulatory Authority, Inc. (FINRA) issued...more
SEC Commissioner Peirce has proposed a three-year safe harbor for qualifying token projects, but regulatory clarity remains elusive.
SEC Commissioner Hester Peirce has been a perennial advocate of innovation in the...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 amendments expand certain exemptions and provide additional guidance under Rules 5130 and 5131 with respect to equity IPO allocations.
On December 19, 2019, the Financial Industry Regulatory Authority (FINRA) issued...more
1/22/2020
/ Amended Rules ,
Broker-Dealer ,
Charitable Organizations ,
Corporate Issuers ,
Exemptions ,
Financial Industry Regulatory Authority (FINRA) ,
Foreign Investment Entities (FIEs) ,
Guidance Update ,
Initial Public Offering (IPO) ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Retirement Plan ,
Securities and Exchange Commission (SEC) ,
Sovereign-Controlled Companies ,
Special Purpose Entities
It was a year filled with tantalizing tidbits and many loose ends.
2019 marked the 10th year since blockchain technology was released into the wild by its still unknown inventor, Satoshi Nakamoto, who mined the first bitcoin...more
1/9/2020
/ Bitcoin ,
Blockchain ,
Chain of Custody ,
Cryptocurrency ,
Digital Assets ,
Distributed Ledger Technology (DLT) ,
Enforcement ,
Enforcement Actions ,
Financial Industry Regulatory Authority (FINRA) ,
Financial Transactions ,
Initial Coin Offering (ICOs) ,
No-Action Letters ,
Popular ,
Regulatory Agenda ,
Regulatory Standards ,
Securities Act of 1933 ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act ,
Securities Tokens ,
Token Sales ,
Unregistered Securities
The US agency has used a no-action letter to enable a sandbox-like approach to blockchain-based trade settlements.
In what may be the first regulator-approved application of blockchain technology for the settlement of US...more
US regulators are calling attention to financial firms’ obligations to protect against evolving cybersecurity threats.
On October 2, 2019, the Financial Industry Regulatory Authority (FINRA) issued an information notice to...more
11/26/2019
/ Business E-Mail Compromise (BEC) ,
CFTC ,
Cyber Attacks ,
Cyber Threats ,
Cybersecurity ,
Data Protection ,
Data Security ,
Enforcement Actions ,
Financial Industry Regulatory Authority (FINRA) ,
Information Systems Security Program (ISSP) ,
National Futures Association ,
New Guidance
As the agency pursues and prevents offerings of tokens it deems unregistered securities, further issues emerge.
The recent wave of US Securities and Exchange Commission (SEC) enforcement actions relating to initial coin...more
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
Developing a framework for consumer tokens -
With the rapid growth in the development of blockchain technology, virtual currencies and token sales (sometimes referred to as initial coin offerings, or ICOs), token...more
11/13/2019
/ Blockchain ,
CFTC ,
Commodities ,
Compliance ,
Cryptocurrency ,
Derivatives ,
Digital Assets ,
Enforcement Actions ,
Futures ,
Howey ,
Initial Coin Offering (ICOs) ,
Securities Act of 1933 ,
Securities and Exchange Commission (SEC) ,
Swaps ,
Token Sales
The Annual Report provides transparency on FINRA’s recent examination findings and focus for the coming year.
On October 16, 2019, the Financial Industry Regulatory Authority (FINRA) published its annual Report on...more
Global monetary authorities and financial regulators have responded forcefully to the advent of privately developed global stablecoins.
A new report highlights the risks of global stablecoins and enumerates the legal,...more
The IRS has published a Revenue Ruling and FAQs clarifying some long-standing virtual currency questions.
On October 9, 2019, the US Internal Revenue Service (IRS) issued its first guidance on the tax treatment of...more
In line with its previous guidance, FINRA has granted broker-dealer (but not custodian) status to a digital asset platform.
In a follow-up to the July 2019 SEC and FINRA joint staff statement (Joint Statement) clarifying...more
Token pre-sale agreements are a popular type of financing instrument among start-ups in the blockchain space. Latham & Watkins attorneys explore the initial impact of SEC v. Kik on the use of token pre-sale agreements and...more
9/6/2019
/ Automated Convertible Note (ACN) ,
Blockchain ,
Capital Formation ,
Capital Raising ,
Enforcement Actions ,
Popular ,
Pre-Sale Agreements ,
Private Sales ,
Publicly-Traded Companies ,
Securities and Exchange Commission (SEC) ,
Securities Transactions ,
Securities Violations ,
Security Token Offering (STOs) ,
Simple Agreement for Future Tokens (SAFT) ,
Startups ,
Token Sales
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
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
The SEC issues second no-action letter for a digital token, but will “utility” token offerings reach the next level?
Gamers, rejoice! In only its second no-action letter to date for digital tokens, the SEC cleared the way...more
7/30/2019
/ Anti-Money Laundering ,
BSA/AML ,
Digital Currency ,
Ether Tokens ,
Ethereum ,
Gaming ,
Howey ,
No-Action Letters ,
Popular ,
Regulation D ,
Securities Act of 1933 ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act ,
Utility Tokens
The regulators attempt to clarify their position on the possible custody of digital assets by broker-dealers, but questions remain.
The SEC and FINRA recently released a joint staff statement (Joint Statement) addressing...more
The SEC’s Regulation Best Interest has important implications for institutionally focused broker-dealers and investment bankers.
On June 5, 2019, the US Securities and Exchange Commission (SEC) adopted Regulation Best...more
7/8/2019
/ Best Interest Standard ,
Broker-Dealer ,
Conflicts of Interest ,
Duty of Care ,
Fiduciary Duty ,
Financial Services Industry ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Regulation BI ,
Retail Investors ,
Securities and Exchange Commission (SEC)