Expect the Securities and Exchange Commission to scrutinize offshore activity more aggressively after a recent ruling by a panel of the U.S. Court of Appeals for the Tenth Circuit. On an issue of first impression, a two-judge majority held in S.E.C. v. Scoville, No. 17-4059, ___ F.3d ___, 2019 WL 302867 (10th Cir. Jan. 24, 2019), […]

In a setback for the Securities and Exchange Commission, a federal district court has denied a motion for a preliminary injunction against a token issuer and its founder because the SEC failed to demonstrate that the tokens were securities. The decision does not necessarily add clarity to the question dominating the crypto-asset space – whether […]

On November 8, 2018, the SEC announced its first enforcement action based on findings that a digital “token” trading platform operated as an unregistered national securities exchange. The action targeted EtherDelta and its founder, Zachary Coburn. According to the Commission’s order, “EtherDelta is an online platform for secondary market trading of ERC20 tokens, a type […]

On November 2, 2018, the Securities and Exchange Commission (the “Commission”) amended Rules 605 and 606 under Regulation NMS to require additional disclosures by broker-dealers to customers regarding the handling of their orders.1 The Commission stated that the amended rules would provide more detailed information to customers—with a focus on institutional customers—thereby allowing a more […]

Regulators in both the United Kingdom and Hong Kong have voiced words of caution regarding varying virtual assets. Both regulators were concerned in particular about the integrity of the cash markets for virtual assets and products giving retail investors both direct and indirect exposure to virtual assets.