Posts Categorized: Securities Markets

SEC Issues Concept Release on Private Placements

On June 18, 2019, the Securities and Exchange Commission (the “SEC”) issued a more than 200-page concept release about ways to simplify, improve and harmonize exempt offerings, including private placements, Regulation Crowdfunding and others.  The SEC raises numerous issues for comment, such as, for example, whether and how the “accredited investor” definition should be changed,… Read more »

SEC Adopts New Broker-Dealer Rules on Standard of Behavior

On June 5, 2019, the Securities and Exchange Commission (the “SEC”) adopted new rules, including: (i) Regulation Best Interest, raising the requirement for broker-dealers recommending securities to retail clients from determining that the securities are suitable to acting in the best interests of clients, and requiring certain specified disclosure, care in carrying out transactions, written… Read more »

SEC Issues Cease and Desist Against Prosper for Overstating “Annualized Net Returns”

On April 19, 2019, the Securities and Exchange Commission (the “SEC”) issued a Cease and Desist Order against Prosper Funding, LLC (“Prosper”), for overstating “Annualized Net Returns” to its investors for nearly two years. Prosper is an on-line lender which raises funds by selling securities linked to the performance of consumer loans and related rights. … Read more »

SEC Cease and Desist Against Alleged Unlicensed Cryptocurrency Exchange

On November 8, 2018, the Securities and Exchange Commission (the “SEC”) published a press release announcing that it had settled its first cease and desist enforcement action concerning a cryptocurrency trading platform, against Zachary Coburn, the founder of EtherDelta.  The SEC has alleged that EtherDelta was an unregistered national securities exchange in that it provided a… Read more »

SEC Acts Against Cryptocurrency Companies

On October 11, 2018, Securities and Exchange Commission (the “SEC”), the SEC issued a press release announcing that it had obtained an emergency court order to stop an Initial Coin Offering (an “ICO”) by Blockvest LLC and its founder, Reginald Buddy Ringgold, III. Among other things, the company claimed that the ICO had been approved by the… Read more »

Second Treasury Report on Changes to Dodd-Frank

In response to Executive Order 13772 on Core Principles for Regulating the U.S. Financial System, February 3, 2017, the U.S. Treasury (the “Treasury”) issued its second report on October 6, 2017, entitled “A Financial System that Creates Economic Opportunities:  Capital Markets” (the “Report”). after the first report on banks and credit unions was released in… Read more »