Tagged: securities and exchange commission

SEC Adds More Specificity in Latest Initial Coin Offering (ICO) Warning to the Public

In addition to its standard warnings about the generalized risks of ICO-investing and advice to interested ICO issuers that they read the SEC’s 2017 21(a) report, the agency’s latest guide to ICOs (initial coin offerings) gets more specific about the “fraud and manipulation” risks posed… Read More

Tokenization: The Meaning of “Equity Securities” Under 
Section 12(g) – It’s Broader than You May Think

2017 saw a roaring ICO market, with billions of dollars raised by blockchain-based digital asset issuers selling “utility tokens” in initial coin offerings. As the Securities and Exchange Commission (the “SEC”) began cracking down on token issuers for failing to follow securities laws, in late… Read More

SEC Commissioner Peirce Discusses Innovation and Entrepreneurship and Agency’s Opportunity to Rethink its Approach Related to Blockchain and Cryptocurrencies

In a presentation last Friday (along with a Q&A session), SEC Commissioner Hester Peirce discussed innovation, entrepreneurship, and the SEC’s impact on these important aspects of the economy. Delivered remotely to the University of Missouri School of Law, Peirce talked about balancing investor protection while fostering… Read More

SEC Commissioner Peirce Responds to Statements by Commissioner Jackson Regarding Crypto ETFs

Earlier this week, SEC Commissioner Robert Jackson spoke to Roll Call about the potential for Bitcoin or crypto-based Exchange Traded Funds (ETFs). Jackson said he is of the opinion that someone will eventually satisfy the standards the SEC have established. But he also added the caveat… Read More

Enforcement: SEC Charges Online Gaming Company Kizzang & Founder with Fraud, Raised $9 Million From Investors and Used Funding as “Personal Piggybank”

Securities Fraud 101 Yesterday, the Securities and Exchange Commission (SEC) Enforcement Division filed a complaint against online gaming firm Kizzang and founder Robert Alexander. The SEC alleges that from February 2013 to mid 2017, Alexander raised approximately $9 million from 53 different investors. Unfortunately for… Read More

Caution: Online Funding Platforms Will Encounter More Regulatory Scrutiny in 2019

On January 22, 2019, the Financial Industry Regulatory Authority (FINRA) released its examination priorities for 2019.  At the top of the list was online funding platform compliance with the securities laws. With an uptick in the offer and sale of securities offerings online with Rule… Read More

Back to Work: Securities and Exchange Commission is Back on the Job as Government Re-Opens

The Securities and Exchange Commission (SEC) is back on the job as President Trump signed a bill that will re-open the government for three weeks – until February 15th. The closure of federal offices was due to a political spat between the Democrats and the… Read More

Real Estate Crowdfunding: A Discussion with William Skelley, Former CEO of iFunding

iFunding was an early entrant into the real estate crowdfunding sector. Once Title II of the JOBS Act became law (Reg D 506c), it opened up a new world of online promotion for securities offerings and real estate almost immediately became one of the hottest… Read More

US Government Shutdown Slams the Breaks on Reg A+ Issuers. Is there an Alternative to Fix the Logjam?

There has been a good amount of discussion about the impact of the government shutdown and the effect on government employees who are not being paid.  The shutdown is also undermining sectors of the economy that depend on furloughed public employees. One sector of finance that has… Read More

Enforcement Never Rests: SEC Announces Charges in the Edgar Hacking Case

Even while much of the Securities and Exchange Commission (SEC) is on furlough due to the US government shutdown, today the SEC announced charges against nine defendants for participating a hack into the SEC’s EDGAR system – the database that hosts all mandated securities filings…. Read More

SEC Fined and Sanctioned Crypto Project Paragon Pumps 6800% on Russian Exchange

A Happy New Year, indeed. Paragon Coin (PRG), the crypto token of a “cannabis on blockchain” project sanctioned in November by the SEC, pumped 6800% overnight on New Year’s Eve on the Russian crypto exchange Yobit. When PRG holders woke up in the new year,… Read More

“Riot Blockchain” Associate Settles Microcap Fraud Case with SEC

Dr. Philip Frost, a biotech billionaire accused of “fleecing investors…(in) lucrative market manipulation schemes” has agreed to pay $5.5 million in penalties to the American Securities and Exchange Commission (SEC), CNBC reports. Frost is a business associate of Barry Honig, the accused ringleader int he alleged… Read More

CoinAlpha: How a Small Mistake Can Get You in Trouble with the SEC

Recently, the SEC has charged the gamut of ICO players with violating the securities laws, including companies raising money with ICOs, an exchange, and people promoting ICOs. None of the recent cases contained allegations of fraud and in some cases, the companies attempted to comply… Read More

SEC Dramatically Scales Back Operations During Government Shutdown

The US Securities and Exchange Commission (SEC) has issued a brief statement in light of the government shutdown predicated by the political impasse between the Trump administration and Congress. President Trump has said he will not sign a bill funding the government unless funding for… Read More

Templum Submits Rulemaking Petition to the SEC, Seeks Clarity on Clearance & Settlement Involving Blockchain Technology Platforms

Earlier this month, Templum, a digital asset trading platform, submitted a letter to the Securities and Exchange Commission (SEC) requesting regulatory clarity on certain issues in the securities token space. Specifically, Templum asked the SEC to “provide needed guidance related to post-trade activities in the… Read More

SEC Settles with Robo Advisors Wealthfront & Hedgeable on Claims of False Statements

Lost in Space Robot

The Securities and Exchange Commission (SEC) settled proceedings against Wealthfront Advisors LLC and Hedgeable, Inc, regarding claims of making false statements and publishing misleading advertising. This enforcement action marks the first the SEC has taken against Robo-advisors – a hot sector of Fintech. Wealthfront, a… Read More

SEC to Allow Reporting Companies to Use Reg A+ Securities Exemption to Raise Capital

Long requested by Reg A+ fans, the Securities and Exchange Commission (SEC) has approved final rules that will allow reporting companies to utilize the Regulation A (frequently referenced as Reg A+) exemption to raise capital. The amendments to Reg A+ will become effective upon publication in… Read More

What the SEC’s ICO Crackdown Means For You

Recently, the Securities and Exchange Commission (SEC) has been actively pursuing all players in the initial coin offering (ICO) space, including companies that have raised money with ICOs, an exchange, people promoting ICOs, and most recently, an ICO investment fund. The SEC’s recent actions are… Read More

SEC Looks to Address “Patchwork” of Private Offering Exemptions, Staff to Comment on Accredited Investor Definition

During the 37th annual Government-Business Forum on Small Business Capital Formation, Securities and Exchange Commission (SEC) Chair Jay Clayton opened the event with a couple of interesting statements. Clayton commented on the byzantine ecosystem that has emerged, over many decades of legislation and rulemaking, for issuers… Read More

Former AriseBank Executives Implicated in Allegedly Fraudulent ICO Settle with the Securities and Exchange Commission

Gavel Court Legal Trial Law rawpixel unsplash

The Securities and Exchange Commission (SEC) has settled with the executive management involved with the AriseBank initial coin offering (ICO). The allegedly fraudulent ICO came to a screeching halt with the SEC obtained a court order halting the AriseBank ICO that targeted retail investors to invest in the… Read More

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