Search Results: test SEC

SEC Commissioner Peirce Proposes Safe Harbor for Blockchain Developers

Speaking at the International Blockchain Congress in Chicago on February 6, 2020, SEC Commissioner Hester Peirce proposed a safe harbor from U.S. securities laws so that developers of blockchain protocols could offer and sell tokens for the purpose of developing functioning token networks and creating liquidity for users. Commissioner Peirce’s…

Read More

SEC Deems Digital-Currency Investment Vehicle a Reporting Company

On January 21, 2020, Grayscale Bitcoin Trust (the “Trust”) became the first digital currency investment vehicle to attain the status of an SEC reporting company. The Trust’s sponsor, Grayscale Investments, LLC (“Grayscale”), is a digital currency asset manager that offers cryptocurrency investment products that provide exposure to Bitcoin and Ethereum, among…

Read More

SEC Commissioner Hester Pierce Worries Agency's Lag in Directing Token Industry Will Stifle Growth; FinCEN Issues Guidance on Virtual Currencies

On May 9, 2019, Commissioner Hester Peirce of the U.S. Securities and Exchange Commission (“SEC”) expressed concern that the SEC is moving too slowly in providing meaningful guidance for the digital token industry. Commissioner Peirce acknowledged that the SEC has provided some direction to date by: (1) issuing the DAO…

Read More

SEC’s TurnKey Jet No-Action Letter Indicates Baseline for Utility Tokens

On Apr. 3, 2019, the SEC Division of Corporation Finance (“Division”) issued a no-action letter  to TurnKey Jet, Inc. (“TKJ”) in response to TKJ’s incoming letter dated Apr. 2, 2019. At the same time, the Division released a paper entitled “Framework for ‘Investment Contract’ Analysis of Digital Assets” (see accompanying…

Read More

The SEC Releases New “Framework” to Analyze Digital Assets under Securities Laws

On April 3, 2019, the Securities and Exchange Commission (“SEC”) released the “Framework for ‘Investment Contract’ Analysis of Digital Assets” (the “Framework”). The Framework—published by the SEC’s Strategic Hub for Innovation and Financial Technology (“FinHub”) —is the most comprehensive guidance the SEC has provided to date with respect to a…

Read More

On Motion for Reconsideration, SEC Granted Preliminary Injunction Against Cryptocurrency Exchange and its Founder for Acts of Alleged ICO Fraud

On February 14, 2019, the Southern District of California entered a preliminary injunction prohibiting Blockvest, LLC (“Blockvest”), a company set up to exchange cryptocurrencies, and its founder, Reginald Buddy Ringgold, III (“Ringgold”), from violating an anti-fraud provision of the federal securities laws. The decision came following the court’s initial denial…

Read More

SEC Settles With Gladius Networks for Unregistered ICO; Declines to Issue Monetary Fine Due to Self-Reporting

On February 20, 2019, the Enforcement Division of the U.S. Securities and Exchange Commission (“SEC”) issued an Order Instituting Cease-And-Desist Proceedings Pursuant To Section 8a Of The Securities Act Of 1933, Making Findings, And Imposing A Cease-And-Desist Order (“Order”) [1] against Gladius Network LLC (“Gladius”) for an initial coin offering…

Read More

Basis Stablecoin Shuts Down Due To What it Deems A “Serious Negative Impact” of U.S. Securities Regulations

Basis, one of the most well-funded crypto-startups, had plans to create an algorithmic central bank that aimed to create a price-stable cryptocurrency within a decentralized monetary system. In its April 2018 fundraising efforts, Basis had secured $133 million in funding from large institutional investors.  However, citing regulatory constraints, Basis announced…

Read More

SEC Issues Guidance Regarding Application Of Securities Laws to Blockchain Technologies

On November 16, 2018, the Divisions of Corporation Finance, Investment Management, and Trading and Markets of the U.S. Securities and Exchange Commission (“SEC”) issued a Statement on Digital Asset Securities Issuance and Trading, summarizing recent SEC enforcement actions “involving the intersection of long-standing applications of our federal securities laws and…

Read More

SEC Reaches First Settlement in connection with an Unregistered Crypto Exchange

On November 8, 2018, the U.S. Securities and Exchange Commission (“SEC”) announced that it settled charges against Zachary Coburn, the founder of blockchain token trading platform EtherDelta, over operating an unregistered securities exchange1. The SEC’s cease-and-desist order to Coburn describes EtherDelta’s website as a user-friendly interface resembling online securities trading…

Read More