On November 12, SEC Chair Paul Atkins delivered remarks at the Federal Reserve Bank of Philadelphia describing the SEC’s direction for digital asset oversight under “Project Crypto.” The speech previewed a forthcoming “token taxonomy” grounded in the Supreme Court’s Howey investment-contract analysis and emphasized that most tokens currently trading are, in his view, not securities under existing law.Continue Reading SEC Chair Outlines “Project Crypto” Framework for Digital Asset Regulation
On April 4, the Securities and Exchange Commission’s (SEC) Division of Corporation Finance issued a statement clarifying that reserve-backed U.S. dollar stablecoins are not securities, at least under current law and circumstances. The nonbinding guidance marks the latest effort by SEC staff to articulate the boundaries of the agency’s jurisdiction in an evolving crypto regulatory landscape.Continue Reading Digital Dollars, Not Investments: SEC Staff Weighs in on Stablecoins
Over the last several years, the Securities and Exchange Commission (the “SEC”) and the Commodities Futures Trading Commission (“CFTC”) have been laser-focused on the use of so called “off-channel communications” in the financial services industry. On the theory that employees’ use of personal devices to communicate about business matters violates the “books and records” rules as these communications are not saved in company systems, regulators have conducted intrusive and extensive investigations requiring employees to turn over their personal devices for review. SEC Chairperson Gary Gensler recently stated that “bookkeeping sweeps are ongoing,” having resulted in well over $1 billion in fines so far. While the first round of investigations focused on the large banks, this “sweep” has since spread to hedge funds, credit rating agencies, online banking platforms, and now, to regional banks.Continue Reading SEC Off-Channel Communications Sweep