News & Analysis as of

State Securities Regulators

Moore & Van Allen PLLC

Acting Chairman Uyeda Suggests Revisiting the Role of State Securities Regulators in Connection with Mid-size Investment Advisers...

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On April 8, 2025, then Acting Chairman Mark T. Uyeda of the U.S. Securities and Exchange Commission (“SEC”), highlighted in remarks before the Annual Conference on Federal and State Securities Cooperation two areas where...more

Goodwin

FINRA Publishes Metaverse Report and Requests Industry Comments

Goodwin on

FINRA’s Office of Financial Innovation published a report on “The Metaverse and the Implications for the Securities Industry” to raise awareness among its member firms and the broader securities industry and seek industry...more

Nutter McClennen & Fish LLP

Nutter Securities Enforcement Update: January 1, 2024

The Nutter Securities Enforcement Update is a periodic summary of noteworthy recent securities enforcement activity, settlements, decisions, and charges....more

Venable LLP

Are Loans Securities? The United States Court of Appeals for the Second Circuit Responds in Kirschner v. JP Morgan Chase Bank,...

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On August 24, 2023, the United States Court of Appeals for the Second Circuit (the "Court") upheld the District Court's ruling in Kirschner v. JPMorgan Chase Bank, N.A. that notes issued as part of a refinancing transaction...more

Pillsbury Winthrop Shaw Pittman LLP

China Amends the Counter-Espionage Law

With the amended Counter-Espionage Law, China has broadened its definition of “espionage” to give information related to “national security and interests” the same protections already given to state secrets. The amended...more

Orrick, Herrington & Sutcliffe LLP

California joins multistate settlement with securities brokerage

On April 6, the California Department of Financial Protection and Innovation (DFPI) joined a multi-state settlement with a securities brokerage company stemming from an investigation spearheaded by state securities regulators...more

BakerHostetler

U.S. Exchange Closes, Swiss Bank Expands Crypto Offerings; NFA Issues Digital Asset Commodities Rule; Crypto Enforcement...

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Crypto Exchange Ends U.S. Operations, Swiss Bank to Expand Crypto Offerings - Late last month, Bittrex, a leading cryptocurrency exchange founded in Seattle, announced it was closing U.S. operations effective April 30,...more

Skadden, Arps, Slate, Meagher & Flom LLP

Four States Take Enforcement Actions Against Virtual Casino for Allegedly Offering NFTs That Were Securities

State securities regulators in Alabama, Kentucky, New Jersey and Texas filed coordinated enforcement actions on October 20, 2022, against Slotie NFT d/b/a slotie.com requiring the company to stop selling various Slotie...more

Kohrman Jackson & Krantz LLP

Ohio’s Top Securities Regulator Backs Restrictions on REIT Investments

The North American Securities Administrators Association (NASAA), a non-governmental organization that recommends securities regulations for state adoption, has published proposed rules that would limit the ability of...more

BakerHostetler

New Crypto Products Launch; US Official Addresses Crypto Regulation; State Securities Regulators Target Metaverse Casino NFTs; DOJ...

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Crypto Products Launch in Debit Cards, Payment Gateways, Trading Platforms - This week, two cryptocurrency financial services and trading platforms announced partnerships with traditional financial services companies to...more

Goodwin

NASAA (State Securities, not Outer Space) Cautions Investors Exploring Opportunities in the Metaverse

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​​​​​​​The North American Securities Administrators Association (NASAA), an organization of state and provincial securities regulators in the United States, Canada, and Mexico, recently issued an investor advisory warning...more

Goodwin

CFPB Announces Supervision of Nonbanks and Seeks Comment on Risk-Determination Procedures

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Regulatory Developments - CFPB Announces Supervision of Nonbanks and Seeks Comment on Risk-Determination Procedures - On April 25, the CFPB announced its intention to supervise nonbanks, including fintechs, whose...more

Bressler, Amery & Ross, P.C.

Expungement in the States’ Crosshairs

State securities regulators have long expressed reservations about the use of the expungement remedy. Recently, we have observed a marked increase in the use of alternative (read: aggressive) efforts by states to impact the...more

Eversheds Sutherland (US) LLP

Company’s NFT gamble goes bust

On April 13, 2022, the Texas State Securities Board and Alabama Securities Commission issued separate emergency cease and desist orders (C&Ds) against Sand Vegas Casino Club and its two co-founders (Respondents). The C&Ds...more

Skadden, Arps, Slate, Meagher & Flom LLP

Texas, Alabama Regulators Order Halt to Virtual Casino NFT Sales, Alleging They Constituted an Offering of Securities and Misled...

In the non-fungible tokens (NFT) space, many have focused their attention on how the Securities and Exchange Commission (SEC) may view these digital assets. However, state laws are important, as well, as evidenced by recent...more

Bradley Arant Boult Cummings LLP

Q&A with the Mississippi Securities Division: From Ponzi Schemes to Cryptocurrency

State securities regulators saw a busy 2021, and 2022 looks to continue in much the same fashion. Some of the more active topics for regulators have included protecting senior investors, stopping fraudulent investment schemes...more

Winstead PC

SEC Investment Advisers: Texas says “April Fools!” to Federal Preemption?

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On April 1, 2021, the Texas State Securities Board (TSSB) announced the entry of a Consent Order against an SEC registered investment adviser named Independent Financial Group, LLC (“Independent”). The TSSB’s action may...more

Harris Beach Murtha PLLC

Massachusetts Files First-Of-Its-Kind Action Concerning The Massachusetts Fiduciary Rule: Initial Considerations For...

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In February 2020, the Massachusetts Securities Division (the “MSD”) adopted a first-in-the-nation state fiduciary duty rule applicable to broker dealers and broker-dealer agents. Now, roughly three months after enforcement...more

Perkins Coie

Catching Up (Virtually) With the Regulators

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The white collar bar “got together” for a virtual discussion on the current landscape of the practice on September 23, 2020. Hosted by Practising Law Institute (PLI), the White Collar Crime 2020: Prosecutors and Regulators...more

Harris Beach Murtha PLLC

COVID-19 Orders and Regulatory Guidance Impacting Financial Professionals in the New England Region

A number of New England securities regulators have issued orders or guidance modifying key provisions of their regulations in light of the COVID-19 pandemic. New England securities regulators, in particular, have provided...more

Mintz - Securities & Capital Markets...

State Securities Regulators Renew Warnings of COVID-19 Investment Scams

Several State Securities Regulators continue to warn investors of investment scams involving COVID-19. Many states have issued these notices to investor constituents in order to protect both their personal information as well...more

Eversheds Sutherland (US) LLP

The emerging patchwork of fiduciary investment advice regulation – Putting the pieces together (update)

As anticipated, 2020 has seen a number of fiduciary and best interest advice regulations advance at both the federal and state levels. Firms subject to these regulations face challenges in dealing with rules that impose a...more

Steptoe & Johnson PLLC

State Securities Compliance Relief in the Wake of COVID-19

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To date, all state divisions of securities regulators remain open for business. However, in most cases, in-person meetings are temporarily suspended...more

Dechert LLP

COVID-19 Coronavirus: Meeting Together… Separately: Virtual Board and Stockholder Meeting Considerations

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Given the recent recommendations for social distancing in connection with COVID-19 as well as stay-at-home orders that have been implemented in most states, many public companies, including business development companies...more

Mintz - Securities & Capital Markets...

State Securities Regulators Adapt in Response to COVID-19

As financial professionals struggle to adapt during these trying times, securities regulators are also revising their processes and procedures to address the current realities of investor protection in the time of COVID-19...more

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