Blog
FATF Issues Guidance on Virtual Assets Including Stablecoins
In October 2021, the U.S. Financial Action Task Force (the “FATF”) issed Updated Guidance for a Risk Based Approach to Virtual Assets and Virtual Asset Providers and a summary of the guidance. In addition to a number of other updates, Part Two, Box 1, deals with so-called stablecoins. Stablecoins purport to maintain a stable relationship... Read more »
N.Y. Attorney General Alleges Unregistered Dealers Selling Crypto Securities and Commodities
In a letter to five trading platforms, N.Y. Attoney General Letitia James notified them that certain crypto-assets are securities under the N.Y. law – the Martin Act – that requires sellers of securities within or from the state to register with the state. They are securities because they “promise a rate of return to investors,... Read more »
SEC Settles SPAC Enforcement Action
On July 13, 2021, the Securities and Exchange Commission (the “SEC”) announced settlement of enforcement actions aganist a Special Purpose Acquisition Corporation (the “SPAC”), entitled Stable Road Acquisition Company, its sponsor, its CEO, its merger target, entitled Momentus Inc. (“Momentus”) and the founder and the former CEO of Momentus. SPACS have become increasingly popular in... Read more »
FINRA Warns that Private Placements under Rule 506(b) Must Be with Known Investors
In a settlement with a broker-dealer on July 22, 2021, the Financial Industry Regulatory Authority, Inc. (“FINRA”) fined a broker-dealer for selling a private placement under Rule 506(b) of Reg D “without having established pre-existing, substantive relationships with the offerees prior to participating in those offerings. As a result, each of those sales constituted an... Read more »