SEC launch spoof ICO to warn naive ICO investors
SEC launches HoweyCoins — an ICO investment satire intended to educate gullible investors about ICO scams
Comments on NYSE Arca Rulemaking of the Direxion Bitcoin ETF
On January 4, 2018, NYSE Arca, Inc. (“NYSE Arca” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) a proposed rule change to list and trade bitcoin exchange-traded fund (ETFs).
Crypto exchanges in SEC cross-hairs
The SEC has continued its guidance relating to all things crypto with a statement in early March regarding the legality of exchanges. While the statement doesn’t name any specific exchanges, it does make it clear the SEC considers many exchanges to be acting contrary to US securities law by trading assets the SEC considers to be securities.
SEC sweep might herald progress in the ICO market
The SEC sweep of ICOs does not mean that the regulator is taking issue with the concept of the Sale of Future Tokens (SAFT) per se, but rather with several specific issues that have become associated with the structure. David Weisberger explains important principles of securities laws that many SAFT launches and public ICOs potentially violate. Taken as a whole, adherence to these principles could create a better market for both entrepreneurs and investors, he argues.
SEC suspends ‘bandwagon’ blockchain companies from trading
True to its word, the SEC has begun punishing listed companies that have previously had zero ties to the blockchain or digital currencies and have announced, with little to no supporting evidence, that they were moving into the cryptocurrency or blockchain space in some form or another.
SEC Chairman gives ICO lawyers a “stern” talking to
U.S. Securities and Exchange Commission chairman Jay Clayton has once again expressed his concern with the attitudes and approach taken by many in the legal profession when advising ICO clients. Giving the opening address at the annual Securities Regulation Institute conference in Washington, Clayton said; "My first message is simple and a bit stern. Market professionals, especially gatekeepers, need to act responsibly and hold themselves to high standards."
Blockchain For Securities Trading: Black Swan Or In-house Pet?
The Securities and Exchange Commission (SEC) has been assessing how to allow blockchain technology to be integrated into the regulatory landscape. A potpourri of market participants vies to influence this process. All agree changes are coming. Some would change securities trading and settlement in ways that would curb market abuse and level the playing field for investors, especially retail investors; while others are proposing changes that could steepen it.
SEC Chairman issues advice to ICO investors
On Monday this week, U.S. Securities and Exchange Commission Chairman Jay Clayton issued the following advice to market professionals considering investing in ICOs. "The world's social media platforms and financial markets are abuzz about cryptocurrencies and initial coin offering. There are tales of fortunes made and dreamed to be made. We are hearing the familiar refrain,'this time is different.'
When will Bitcoin ETFs get approval?
When will Bitcoin exchange traded funds (ETFs) be approved? In March this year the Winklevoss Twins Bitcoin ETF application was rejected by the Securities and Exchange Commission (SEC). Then both investment management firm VanEck and ETF specialists Rex Shares withdrew filings with the SEC to launch ETFs. The SEC has argued that these firms can not file a Bitcoin ETF until the underlying futures contracts are already in place.
Surf’s up or tsunami – is an ICO legislation wave looming?
In crypto years, the July 25th report by the US Securities and Exchange Commission (SEC) on the DAO ICO probably feels like ancient history to many industry observers. Much has been written about it and the flavor of a lot of that comment has been that the gold rush is over. For many, that interpretation was reinforced soon after the SEC’s report by the Chinese government’s decision to ban ICOs altogether - and give them the nasty name of “illegal financial crimes” to boot. Even Gibraltar got on the bandwagon - with its Financial Services Commission announcing on September 22nd that it was “considering” a regulatory framework “covering the promotion and sale of tokens.”
SEC looks into token sales; ICOs subject to US security laws
The U.S. Securities and Exchange Commission (SEC) recently issued a report of its investigation on The DAO. The record-setting Initial Coin Offering (ICO) launched in June 2016, and quickly lost a third of its assets to a hacker. The purpose given for the report is "to stress that the U.S. federal securities law may apply to various activities, including distributed ledger technology.” The report cautions market participants that offer and sell digital assets, including through ICOs and ‘Token Sales’ are subject to the requirements of the federal securities law.
Report of Investigation Pursuant to Section 21(a) of the Securities Exchange Act of 1934: The DAO
The United States Securities and Exchange Commissionâs (âCommissionâ) Division of Enforcement (âDivisionâ) has investigated whether The DAO, an unincorporated organization; Slock.it UG (âSlock.itâ), a German corporation; Slock.itâs co-founders; and intermediaries may have violated the federal securities laws. The Commission has determined not to pursue an enforcement action in this matter based on the conduct and activities known to the Commission at this time.
Initial Coin Offerings: What happens when a bubble cannot expand?
Initial Coin Offerings, or ICOs, have taken the fintech world by storm in the past few months. Despite the fact that these tokens do not usually confer any rights or claims against assets, as in the case of debt or equity securities, there are likely two reasons for the surge in ICO subscriptions. But the complete lack of investor protections and dubious quality of ICO issuers has drawn the attention of the SEC.
Bitcoin quickly rebounds after SEC decision
The U.S. Securities and Exchange Commission (SEC) made history on Friday by disapproving the Bats BZX Exchange filing to list and trade shares of the Winklevoss Bitcoin Trust. The shares, representing 0.01 BTC, would have tracked the price of bitcoins on the Gemini Exchange. The digital-asset exchange is owned and operated by the Gemini Trust Company, which would have owned the equivalent share value in bitcoins.
Digging Deeper on Bitcoin ETF Filings and Potential Effect
Given elevated interest in the bitcoin ETFs that are going through the regulatory approval process, we are parsing the various puts and takes of the three filings, trying to offer some insight into what factors the SEC may be considering, and elaborating on market estimations for approval and the subsequent effect on price upon approval.
Bitcoin ETF in 2017? A Look at Potential Impact and Probability
After years of work and investor anticipation the rule change necessary to pave the way for the Winklevoss Bitcoin ETF will see a final decision from the SEC by March 11. Overall, we think that the listing of a bitcoin ETF would have a profoundly positive effect on the price of bitcoin not only because of the resulting asset inflow but also because of concurrent shifts in perception and regulatory risk. Overall, however, we think the probability of approval is very low. Taken together, we think the positive effect that a bitcoin ETF would have on the price of bitcoin is vastly underappreciated and that the probability of approval is drastically overestimated within the industry.
