Politics, Legal & Regulation

Policy and regulations impacting innovations in Finance.

Telegram Enforcement Action: “A reminder that the SEC not only has considerable enforcement tools but is willing to use them”

Last week, Crowdfund Insider reported on the Securities and Exchange Commission (SEC) enforcement action against Telegram and the issuance of TON tokens. The move by the SEC is a doozy and telling. First, Telegram sold about $1.7 billion in a SAFT (simple agreement for future… Read More

Libra Association Touts Participation of Members as Headlines Cover Defections

Earlier today, the Libra Assocation issued a release announcing that 21 members have signed the Libra Association Charter and formalized the Libra Association council, elected the Board of Directors, and appointed members of the Libra Association executive team. The news of Libra’s progress arrives while multiple… Read More

Letters from US Lawmakers Regarding Facebook’s Libra May Have Spurned Last Week’s Walkout by Backers

Letters from US lawmakers to members of the Libra Association asking them to, “carefully consider how your companies will manage risks before proceeding,” as backers of a Facebook cryptocurrency called “Libra” may have spurned last week’s corporate exodus from the project. On Friday, October 11th, Visa,… Read More

US Treasury Secretary Mnuchin: Backers Left Facebook’s Libra Because Facebook’s Currency Project “Not Up to Par”

US Treasury Secretary Steve Mnuchin told Andrew Ross Sorkin at CNBC’s Squawk Box October 14th that initial backers of Facebook’s proposed in-app cryptocurrency project, Libra, probably realized the company was, “not ready….(and) not up to par” when they announced they were leaving the project in… Read More

Following SEC Action Halting TON Token Sale in US, Telegram Issues Letter to Investors

A letter from a spokesperson for Telegram regarding the SEC’s emergency action to halt the sale of GRAM tokens to US investors has been making the rounds in the crypto media and on forums. In the the letter, “Shyam” states that Telegram, maker of a… Read More

G7: Cryptocurrencies Such as Libra Pose a Risk to the Global Financial System

The Group of 7 (G7), representing the 7 largest developed economies in the world, is preparing a report slamming Facebook’s Libra. The proposed stablecoin that aspires to be a non-sovereign global currency has been hammered since it was revealed earlier this year. Government officials from… Read More

Terrifying: “The idea that global centralized monopolies like Facebook would also control money”

Facebook’s attempt to launch a global non-sovereign currency was doomed from the beginning for many reasons. While Facebook will continue to put a smiley face on Libra, in its current form, it is just not happening. And this is not just about Facebook’s penchant to… Read More

Facebook’s Subsidiary Calibra Is Being Sued for Trademark Infringement By Mobile Banking Developer Current

Facebook’s subsidiary Calibra is being sued for trademark infringement by Current, the developer of a mobile banking app. The complaint was submitted on October 10 in the US District Court for the Southern District of New York. It alleges that Calibra’s logo is quite similar… Read More

tZero Partner Box Exchange Moves Closer to Regulatory Approval for Boston Security Token Exchange

The Securities and Exchange Commission (SEC) has filed a notice regarding Box Exchange, a partner of tZero, pertaining to the launch of the Boston Securities and Token Exchange (BSTX) which is seeking regulatory approval to offer publicly traded security tokens. tZero is a subsidiary of… Read More

SEC, CFTC & FinCEN Join in Public Statement on Digital Assets

The leaders of the US Commodity Futures Trading Commission (CFTC), the Financial Crimes Enforcement Network (FinCEN), and the Securities and Exchange Commission (SEC) have issued the following joint statement pertaining to anti-money laundering (AML) and countering the financing of terrorism (CFT) regarding digital assets, such… Read More

Deputy Managing Director, Monetary Authority of Singapore: Tokenised Assets Can Simplify Post-trade Processes and Shorten the Settlement Cycle

In a wide-ranging speech at The World Federation of Exchanges General, Jacqueline Loh, Deputy Managing Director, Monetary Authority of Singapore (MAS) addressed the advent of blockchain or distributed ledger technology (DLT) in the utilization of regulated securities and exchanges. Singapore is a noted Fintech Hub… Read More

Final Bitcoin ETF Proposal Bites the Dust at SEC, Volume Misreporting on 95% of Crypto Exchanges Key

In a 112-page order, the US Securities and Exchange Commission (SEC) has rejected NYSE Arca’s request for a rule change to allow the company to sell a “Bitwise” Bitcoin ETF to retail traders. The proposal is believed to be the last remaining request for a… Read More

SEC Is Holding Settlement Discussions With Allegedly Fraudulent ICO Organizer Reggie Middleton

The US Securities and Exchange Commission (SEC) has reportedly initiated settlement discussions with Reggie Middleton, the manager of Veritaseum’s (VERI) $14.8 million initial coin offering (ICO). In August, the SEC Enforcement Division announced charges against Reginald “Reggie” Middleton who allegedly engaged in fraud related to… Read More

US CFTC Announces New Director of LabCFTC: Melissa Netram

U.S. Commodity Futures Trading Commission has announced the appointment of  Melissa Netram as Director of LabCFTC. Launched in May 2017, LabCFTC is an initiative aimed at facilitating market-enhancing Fintech innovation. Netram will be responsible for coordinating closely with international and U.S. regulators and Capitol Hill… Read More

CFTC Chairman Says Ether is a Commodity, Expects Ether Derivative Products to Trade

Speaking at the Yahoo Markets All Finance conference, Commodity Futures Trading Commission Chair Dr. Heath P. Tarbert made several important comments today. Tarbert stated, that in his opinion, Ether is a commodity and thus not a security. Tarbert also predicted trading of Ether derivatives as… Read More

Spurned by Libra, EU Finance Commissioner Promises Cryptocurrency Laws

The European Union’s finance commissioner-designate, Valdis Dombrovskis, has told fellow members of Europe’s governing body that he plans to propose laws for the regulation of cryptocurrencies, Reuters reports. “Europe needs a common approach on crypto-assets such as Libra…I intend to propose new legislation on this,” Dombrovskis… Read More

Facebook’s Libra On Deck: Mark Zuckerberg to Testify Before House Financial Services Committee

Mark Zuckerberg, CEO of Facebook, is scheduled to testify in front of the House Financial Services Committee later this month in what is expected to be a thorough grilling regarding Facebook’s stablecoin Libra and Facebook’s operations in general. Congresswoman Maxine Waters (D-CA), Chairwoman of the… Read More

Virtual Currency: IRS Guidance Addresses Cryptocurrency Forks and Tax Treatment

Fork

The US Internal Revenue Service (IRS) has issued guidance today for “taxpayers who engage in transactions involving virtual currency.” Expanding on guidance from 2014, the IRS is issuing additional guidance to help taxpayers better understand their reporting obligations for specific transactions involving virtual currency. The… Read More

World Federation of Exchanges Ask UK Regulators Not to Ban Crypto Derivatives

An advocacy group representing mainstream stock exchanges and clearinghouses from around the globe, the World Federation of Exchanges (WFE), has asked the UK’s Financial Conduct Authority (FCA) not to ban cryptocurrency derivatives products aimed at retail investors. In a consultation paper issued by the FCA… Read More

SEC’s Concept Release Comment Period Closes. So What Say You on Regulatory Harmonization & Access to Capital?

The Securities and Exchange Commission (SEC) officially closed comments on its concept release regarding regulatory harmonization of securities offerings exemptions on September 24, 2019. But as in past cases, comments have continued to trickle in and we would not be surprised if more follow. That… Read More

Send this to a friend