Category Archives: SEC

Not Everything is About Investors: The Case for Mandatory Stakeholder Disclosure

By | October 10, 2019

Courtesy of Ann Lipton Businesses that operate in the United States are constantly required to disclose information. Both state and federal law require merchants to disclose product and service information to consumers.  Federal law requires employers to disclose workplace hazards to employees.  Data on the racial and gender makeup of a firm’s workforce must be… Read More »

The SEC Should Continue to Say No to Bitcoin Exchange-Traded Products

By | June 18, 2019

The following is an edited comment letter that was submitted to the Securities and Exchange Commission (the “Commission”) on June 14th in response to the Commission’s May 20, 2019 order (Release No.34-85896) to institute proceedings under Section 19(b)(2)(B) of the Securities Exchange Act of 1933 (“Act”) to determine whether to approve or disapprove of Cboe… Read More »

Securities Fraud: Not Just for Policing Financial Markets

By | May 2, 2019

Courtesy of Joseph T. McClure In the wake of the Facebook-Cambridge Analytica scandal, data privacy emerged as a hot-button issue that politicians of all ideological persuasions will add to their stump speeches before the 2020 elections. It also appears likely to join issues such as climate change, gun violence, and workplace sexual misconduct as the… Read More »

ICO Regulation not Slowed by Brexit or US Shutdown Chaos

By | January 28, 2019

Courtesy of Barbara C. Matthews It seems somehow ironic and fitting that the economic sector most hostile to centralized governments – cryptocurrency and initial coin offerings (ICOs)  – faces renewed regulatory activity despite the UK Brexit and US shutdown chaos.  On January 23, the Financial Conduct Authority (FCA) in the United Kingdom issued a new… Read More »

The Effects of Cross-Border Cooperation on Enforcement and Earnings Attributes

By | March 28, 2018

Courtesy of Roger Silvers In a recent study, I investigate cross-border coordination among national securities regulators and its impact on enforcement and financial reporting. The paper provides an in-depth look at the cross-border enforcement program at the U.S. Securities and Exchange Commission (SEC), using publicly available data. The results are consistent with the IOSCO Multilateral… Read More »

SEC Stands Firm Against New Bitcoin ETF Proposals

By | January 12, 2018

The New Year has seen the Securities and Exchange Commission break out its best Dikembe Mutombo finger wag impersonation for those seeking to list a Bitcoin related exchange traded fund (ETF). According to the SEC’s EDGAR database, seven different Bitcoin ETF proposals were withdrawn just this week at the request of SEC staff. The SEC’s… Read More »

Regulating Initial Coin Offerings: The SEC Gets All the Attention, But the CFTC Has the Stronger Case

By | January 10, 2018

The rise of Initial Coin Offerings (ICOs) to finance the development of blockchain applications has captured the public imagination.[1] This method of obtaining startup capital raised over $3 Billion in 2017.[2] Naturally, as ICOs have generated more and more money for developers, they have come under increased regulatory scrutiny in the United States and abroad.[3]… Read More »

New CFTC Primer Casts Uncertainty on Unregulated Utility Token Market. Is This An Application of Goodhart’s Law?

By | November 13, 2017

On July 25th, the Securities and Exchange Commission (SEC), citing the long established “Howey Test”[1] and other cases,[2] determined that a public offering of digital tokens known as “the DAO” was in fact an offering of securities that was subject to federal law. While this ruling temporarily quelled an otherwise raging initial coin offering (ICO)… Read More »

Decoding The Demand For Cryptocurrency: What Is Driving The Historic Price Surge?

By | September 26, 2017

2017 has been the year of cryptocurrency – with Bitcoin, Ethereum and other popular digital currencies experiencing unprecedented growth.  Bloomberg recently reported that the price increase in Bitcoin and Ethereum (respectively 358 and 4000 percent) has been “staggering” considering “[t]ech stocks rose just over 1000 percent over the entire course of their [late-’90s] bubble.” As… Read More »