BRAEDEN ANDERSON

Hi, I’m Braeden.

I'm a partner at Gesmer Updegrove LLP, where I lead the Securities Enforcement and Digital Assets practice areas. I’ve served as Assistant General Counsel at Robinhood, practiced at Kirkland & Ellis and Sidley Austin, and represented clients in high-stakes matters before the SEC, DOJ, FINRA, and state regulators.

I write and make content for people who don’t have time to guess: founders, lawyers, regulators, and smart operators who know better than to rely on Google or the AI answer without context.

I've been recognized by U.S. Best Lawyers: Ones to Watch® for Financial Services and Securities Regulation, and listed in Marquis Who’s Who in America for contributions to law and public service.

Enjoy the content. I hope you find what you’re looking for. And if you want to talk something through, don’t hesitate to reach out. I’d love to hear from you. It’s really cool when readers become clients.

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The full Anderson Insights archive is now searchable. Use the search bar to find past content by topic, agency, or keyword. Try searching: “SEC v. Jarkesy,” “ATS regulation,” “custody” or “digital assets”

K. Braeden Anderson 9/9/24 K. Braeden Anderson 9/9/24

Massachusetts Investment Advisor Fined for Undisclosed WeChat Communications

In a recent enforcement action, a Massachusetts-based investment advisor has been sanctioned by the Financial Industry Regulatory Authority (FINRA) for conducting business communications through an unapproved messaging platform, in violation of recordkeeping rules. The advisor, formerly associated with a major brokerage firm, was found to have used WeChat, a Chinese social media application, to interact with clients without the firm's approval or proper documentation.

K. Braeden Anderson 9/8/24 K. Braeden Anderson 9/8/24

Opinion: U.S. Congress Must Establish a Clear Regulatory Framework for Crypto Assets to Maintain Western Leadership in Financial Innovation

By now, we all know that cryptographic blockchain has the potential to revolutionize the transfer of value over the internet—quickly, inexpensively, and without intermediaries. With mass-adoption, a blockchain-powered immutable public ledger of transactions could reshape financial systems globally. Yet, like any transformative technology, its long-term success hinges on legal and regulatory clarity. It is time for Congress to establish a comprehensive, sensible framework for regulating crypto assets.

K. Braeden Anderson 9/8/24 K. Braeden Anderson 9/8/24

Recent SEC Enforcement Action Highlights the Importance of Robust MNPI Policies in CLO Trading

In a significant enforcement action, the U.S. Securities and Exchange Commission (SEC) has sanctioned a private fund manager for failing to implement adequate policies and procedures to prevent the misuse of material nonpublic information (MNPI) while trading securities issued by collateralized loan obligation vehicles (CLOs). This case underscores the SEC’s focus on credit managers and emphasizes the importance of strong compliance frameworks for preventing MNPI violations in CLO trading.

K. Braeden Anderson 9/7/24 K. Braeden Anderson 9/7/24

DOJ and SEC Crack Down on Market Manipulation: Enforcement Actions Against Short Sellers Signal Increased Scrutiny

In a decisive move against market manipulation, the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC) have launched parallel enforcement actions targeting prominent activist short seller Andrew Left and his firm, Citron Capital LLC. These actions underscore the increased scrutiny short sellers face and highlight the enduring prevalence of "short-and-distort" campaigns—where short sellers spread false or misleading information to drive down a company's stock price for financial gain.

K. Braeden Anderson 9/6/24 K. Braeden Anderson 9/6/24

FINRA Prevails in Broker’s Post-Jarkesy Challenge to Disciplinary Hearing

The Financial Industry Regulatory Authority (FINRA) recently scored a legal victory after a federal judge in Philadelphia dismissed a broker’s challenge to a FINRA disciplinary proceeding, which was based on the U.S. Supreme Court’s Jarkesy decision. This decision provides some relief for both FINRA and the Securities and Exchange Commission (SEC), as they face increased scrutiny following the Supreme Court's ruling on administrative law judges.

K. Braeden Anderson 9/4/24 K. Braeden Anderson 9/4/24

SEC Fines Six Major Credit Rating Agencies for Recordkeeping Failures

The U.S. Securities and Exchange Commission (SEC) has imposed fines totaling $49 million on six major credit rating agencies for their failure to maintain and preserve electronic communications as required under federal securities laws. This action underscores the SEC's commitment to enforcing compliance with regulatory obligations that are crucial for maintaining the integrity of the financial markets.

K. Braeden Anderson 9/4/24 K. Braeden Anderson 9/4/24

Nvidia Faces DOJ Antitrust Investigation: A Potential Turning Point in the AI Industry

The U.S. Department of Justice (DOJ) has significantly escalated its antitrust investigation into Nvidia Corp., the world’s leading AI chipmaker, by issuing subpoenas not only to Nvidia but also to third-party companies. This marks a critical step forward in a probe that has been quietly gaining momentum over the past several months. The investigation centers on whether Nvidia’s business practices have unfairly restricted competition in the rapidly growing AI chip market, with potential implications for the broader tech industry.

K. Braeden Anderson 9/1/24 K. Braeden Anderson 9/1/24

SEC Targets OpenSea: The Potential Implications for the NFT Market

The Securities and Exchange Commission (SEC) has recently issued a Wells notice to OpenSea, the most prominent marketplace for non-fungible tokens (NFTs), signaling a potential lawsuit for securities law violations. This move marks a significant development in the SEC's ongoing scrutiny of the digital assets space, particularly as it relates to the burgeoning NFT market.

K. Braeden Anderson 8/30/24 K. Braeden Anderson 8/30/24

FINRA Update on Crypto Asset Activities

On August 14, 2024, the Financial Industry Regulatory Authority (FINRA) issued an important update regarding its ongoing efforts to engage with its members on the subject of crypto asset activities. Referred to as "crypto assets," these are defined by FINRA as assets issued or transferred using distributed ledger or blockchain technology. These assets include virtual currencies, coins, and tokens, which may or may not meet the definition of "securities" under federal securities laws.

K. Braeden Anderson 8/28/24 K. Braeden Anderson 8/28/24

Former Broker Fined for Alleged Stock Hype in Client Emails: A Cautionary Tale for Advisors

On August 28, 2024, the Financial Industry Regulatory Authority (FINRA) announced the suspension and fining of Richard Joseph Jackson, a former broker, for allegedly engaging in misleading communications with clients regarding stock performance. This case underscores the critical importance of compliance with FINRA’s communication rules, particularly for financial professionals responsible for advising clients.

K. Braeden Anderson 8/27/24 K. Braeden Anderson 8/27/24

Court Denies SEC’s Request for Disgorgement in Ripple Case: Implications for Crypto Enforcement

In a notable development for the cryptocurrency regulatory landscape, a federal court has recently denied the Securities and Exchange Commission’s (SEC) request for disgorgement of profits in its case against Ripple Labs. This ruling, issued by Judge Analisa Torres of the US District Court for the Southern District of New York on August 7, 2024, marks a significant setback for the SEC’s efforts to impose substantial financial penalties in crypto cases primarily based on registration violations.

K. Braeden Anderson 8/26/24 K. Braeden Anderson 8/26/24

SEC Issues $24 Million in Whistleblower Awards: A Testament to the Power of Insider Cooperation

The Securities and Exchange Commission (SEC) continues to underscore the vital role that whistleblowers play in the enforcement of securities laws. On August 26, 2024, the SEC announced awards totaling more than $24 million to two whistleblowers whose information and assistance were instrumental in leading to successful enforcement actions, both by the SEC and another federal agency. This development is a compelling reminder of the significant public service provided by whistleblowers and the robust framework established to protect and reward them.

K. Braeden Anderson 8/26/24 K. Braeden Anderson 8/26/24

SEC Charges Abra with Unregistered Offers and Sales of Crypto Asset Securities

The SEC's recent enforcement action against Plutus Lending LLC, doing business as Abra, underscores the agency's unwavering commitment to ensuring that crypto asset offerings and sales comply with federal securities laws. The charges filed today highlight significant regulatory issues surrounding the unregistered offers and sales of crypto asset securities, specifically through Abra's retail crypto asset lending product, Abra Earn.

K. Braeden Anderson 8/26/24 K. Braeden Anderson 8/26/24

National Futures Association (NFA) Implements New Member Reporting Requirements

The National Futures Association (NFA) has introduced significant updates through Compliance Rule 2-52 and a corresponding Interpretive Notice. These new provisions, effective October 15, 2024, establish expanded reporting requirements applicable to all NFA Members, including those registered as commodity pool operators (CPOs) and commodity trading advisors (CTAs).

K. Braeden Anderson 8/23/24 K. Braeden Anderson 8/23/24

Top 10 Securities Enforcement Developments of Summer 2024

In this review, we highlight the top 10 securities enforcement developments of summer 2024, offering insights into the latest trends, landmark cases, and strategic shifts that are likely to influence compliance strategies and corporate governance moving forward. Whether you're navigating these issues in-house or advising clients, understanding these developments is essential for staying aligned with the evolving standards of securities law.