Historical analysis on financial regulation, technology, and public policy. https://braedenanderson.com/ en-US https://braedenanderson.com/insights/cftc-proposes-new-cpo-registration-exemption-for-sec-registered-advisers https://braedenanderson.com/insights/cftc-proposes-new-cpo-registration-exemption-for-sec-registered-advisers The CFTC's proposed CPO exemption is not a simple exit from regulation. It substitutes SEC oversight for part of the CFTC regime while creating a separate question about pools that fall outside both Form PF and Form CPO-PQR reporting. Thu, 27 Aug 2026 13:12:29 GMT https://braedenanderson.com/insights/the-sec-proposes-a-rule-based-exit-from-investment-contract-treatment https://braedenanderson.com/insights/the-sec-proposes-a-rule-based-exit-from-investment-contract-treatment The SEC’s proposed Regulation Crypto Assets would create tailored token-offering exemptions and a Form TR process for ending Commission-administered investment-contract treatment. The proposed certainty is conditional, challengeable, and incomplete across the federal securities laws. Mon, 24 Aug 2026 22:29:03 GMT https://braedenanderson.com/insights/sec-semiannual-reporting-proposal-would-give-issuers-flexibility-but-quarterly-reporting-may-remain-the-market-standard https://braedenanderson.com/insights/sec-semiannual-reporting-proposal-would-give-issuers-flexibility-but-quarterly-reporting-may-remain-the-market-standard The SEC’s proposal to permit semiannual reporting could significantly alter the public-company disclosure framework, but quarterly reporting may remain the market standard. Early surveys suggest many issuers would either continue filing Form 10-Q or maintain quarterly earnings releases even if formal SEC reporting becomes less frequent. This article examines the proposal, the potential compliance savings, investor-protection concerns, and why market expectations may ultimately determine reporting frequency. Tue, 18 Aug 2026 15:15:41 GMT https://braedenanderson.com/insights/clinical-trial-prediction-markets-have-arrived-their-credibility-will-depend-on-who-is-allowed-to-trade https://braedenanderson.com/insights/clinical-trial-prediction-markets-have-arrived-their-credibility-will-depend-on-who-is-allowed-to-trade Markets tied to drug trials and FDA decisions may improve price discovery. Their legitimacy will turn on controls governing confidential information, influence over outcomes, and cross-market manipulation. Article by Braeden Anderson. Tue, 11 Aug 2026 18:55:18 GMT https://braedenanderson.com/insights/fifteen-years-after-dodd-frank-what-do-the-data-tell-us-about-the-swaps-market https://braedenanderson.com/insights/fifteen-years-after-dodd-frank-what-do-the-data-tell-us-about-the-swaps-market Professor Ilya Beylin’s new empirical research examines whether Dodd-Frank improved or impeded U.S. swap markets. We assess his findings alongside leading academic studies on central clearing, swap execution facilities, liquidity, transaction costs, and derivatives risk management to evaluate what the post-crisis regulatory regime has actually meant for swap usage. Sun, 09 Aug 2026 21:38:58 GMT https://braedenanderson.com/insights/sec-launches-specialized-financial-reporting-and-accounting-unit-reinforcing-focus-on-financial-statement-and-audit-enforcement https://braedenanderson.com/insights/sec-launches-specialized-financial-reporting-and-accounting-unit-reinforcing-focus-on-financial-statement-and-audit-enforcement The SEC’s creation of a dedicated Financial Reporting and Accounting Unit marks a significant investment in accounting and audit enforcement. The new specialized team is expected to strengthen the Commission’s ability to investigate complex financial reporting issues, increase scrutiny of auditors and accounting professionals, and reinforce the importance of robust internal controls and corporate governance. Our analysis examines what this organizational change signals for public companies, audit committees, accounting firms, and financial executives. Wed, 05 Aug 2026 21:48:26 GMT https://braedenanderson.com/insights/sec-commissioner-peirce-flags-securities-law-risks-for-crypto-vaults-and-onchain-lending https://braedenanderson.com/insights/sec-commissioner-peirce-flags-securities-law-risks-for-crypto-vaults-and-onchain-lending In this Anderson Insights article, securities and crypto attorney Braeden Anderson analyzes SEC Commissioner Hester Peirce’s July 22, 2026 statement on crypto vaults and onchain lending. The article explains why the SEC is scrutinizing yield-generating crypto products and how vaults, lending protocols, and related strategies may trigger the Securities Act, Investment Company Act, and Investment Advisers Act. It also outlines the key legal and compliance issues facing crypto companies, DeFi developers, asset managers, lenders, and investment advisers. Wed, 29 Jul 2026 14:20:04 GMT https://braedenanderson.com/insights/sec-approves-expanded-trace-indicator-for-transactions-between-member-affiliates https://braedenanderson.com/insights/sec-approves-expanded-trace-indicator-for-transactions-between-member-affiliates The SEC approved FINRA’s expanded TRACE Affiliate—Principal Transaction Indicator on July 24, 2026. Once implemented, qualifying same-day, same-price principal transactions between affiliated FINRA members may be withheld from public dissemination when both firms share a reasonable belief that one affiliate will complete a corresponding transaction in the same security with another counterparty. Tue, 28 Jul 2026 04:00:39 GMT https://braedenanderson.com/insights/cftc-staff-clarifies-self-certification-rules-for-event-contract-series https://braedenanderson.com/insights/cftc-staff-clarifies-self-certification-rules-for-event-contract-series CFTC Staff Advisory No. 26-22 states that exchanges should not use broad templates to certify event contracts with different settlement sources or methodologies. Related contracts may be certified as a class only when they satisfy Regulation 40.2(d), including its identical-mechanics and prior-product requirements. Mon, 27 Jul 2026 15:30:22 GMT https://braedenanderson.com/insights/finra-proposes-risk-based-overhaul-of-rule-2210-communications-review https://braedenanderson.com/insights/finra-proposes-risk-based-overhaul-of-rule-2210-communications-review FINRA has proposed significant amendments to Rule 2210 that would replace mandatory principal pre-use approval of many retail communications with a risk-based supervisory framework. Regulatory Notice 26-14 also would modernize the treatment of social media, address firms’ use of generative AI, revise communications filing requirements, and simplify standards governing investment recommendations. Comments on the proposal are due September 11, 2026. Sun, 12 Jul 2026 04:02:30 GMT https://braedenanderson.com/insights/cftc-scrutiny-of-polymarket-puts-prediction-market-compliance-in-focus https://braedenanderson.com/insights/cftc-scrutiny-of-polymarket-puts-prediction-market-compliance-in-focus The CFTC’s reported investigation into Polymarket marks a significant test for prediction-market regulation. This Anderson Insights article examines Polymarket’s prior CFTC settlement, recent congressional scrutiny, allegations involving influencer marketing and simulated trading, and the broader compliance implications for event-contract platforms operating at the intersection of derivatives regulation, consumer protection, and gambling law. Wed, 01 Jul 2026 19:26:53 GMT https://braedenanderson.com/insights/sec-and-cftc-revisit-the-foundations-of-title-vii-what-the-joint-request-for-comment-signals-for-derivatives-markets https://braedenanderson.com/insights/sec-and-cftc-revisit-the-foundations-of-title-vii-what-the-joint-request-for-comment-signals-for-derivatives-markets The SEC and CFTC have launched a joint review of key Title VII derivatives definitions, signaling potential changes for swaps, security-based swaps, digital asset derivatives, prediction markets, and other emerging financial products. Learn what the request for comment means for market participants and the future of derivatives regulation. Sun, 21 Jun 2026 12:30:04 GMT https://braedenanderson.com/insights/cftc-seeks-input-on-regulatory-barriers-facing-fintech-firms https://braedenanderson.com/insights/cftc-seeks-input-on-regulatory-barriers-facing-fintech-firms The Commodity Futures Trading Commission has issued a Request for Information seeking public comment on regulations, guidance, no-action letters, and other regulatory items that may hinder fintech firms from partnering with regulated institutions or accessing CFTC-regulated markets. The initiative, issued pursuant to Executive Order 14405, could have significant implications for fintech, digital asset, and financial services firms seeking greater regulatory clarity and streamlined market access. Learn what the CFTC is asking for and why this development matters. Wed, 17 Jun 2026 20:52:22 GMT https://braedenanderson.com/insights/gary-genslers-most-entertaining-lines-in-the-kalshi-litigation https://braedenanderson.com/insights/gary-genslers-most-entertaining-lines-in-the-kalshi-litigation Gary Gensler’s amicus brief in the Kalshi litigation has become one of the most discussed filings in securities, derivatives, and fintech circles. Regardless of where lawyers stand on prediction markets, federal preemption, or Gensler’s broader regulatory legacy, the brief contains a number of unusually memorable passages. Here are the quotes and arguments that have generated the most attention across the legal industry. Mon, 15 Jun 2026 04:00:03 GMT https://braedenanderson.com/insights/pb6pat149kgfzp9g6o8zgk8iyhnlf1 https://braedenanderson.com/insights/pb6pat149kgfzp9g6o8zgk8iyhnlf1 The U.S. Supreme Court’s decision in FS Credit Opportunities Corp. v. Saba Capital Master Fund, Ltd. marks a significant development in securities and investment management law. The Court held that Section 47(b) of the Investment Company Act of 1940 does not create an implied private right of action, meaning private plaintiffs cannot sue solely under that provision to challenge alleged violations of the Act. The decision reinforces the Court’s modern yet conservative approach to implied rights of action, emphasizing that Congress, not the courts, determines who may enforce federal law. The ruling has important implications for closed-end funds, activist investors, investment advisers, fund boards, and litigants seeking to rely on remedial provisions in federal regulatory statutes. Sat, 13 Jun 2026 16:37:40 GMT https://braedenanderson.com/insights/sec-proposes-to-rescind-regulation-nms-rules-611-and-610e https://braedenanderson.com/insights/sec-proposes-to-rescind-regulation-nms-rules-611-and-610e The SEC is proposing to rescind Rule 611 of Regulation NMS, which generally prohibits trade-throughs of protected quotations in NMS stocks, and Rule 610(e), which requires exchanges and national securities associations to maintain rules designed to prevent members from displaying quotations that lock or cross protected quotations. In plain English, the SEC is proposing to remove two foundational rules that have helped define how U.S. equity orders are routed, executed, and displayed across trading venues for the past twenty years. Thu, 11 Jun 2026 16:29:37 GMT https://braedenanderson.com/insights/commissioner-peirces-farewell-remarks-underscore-a-central-constraint-on-sec-authority https://braedenanderson.com/insights/commissioner-peirces-farewell-remarks-underscore-a-central-constraint-on-sec-authority Commissioner Hester M. Peirce’s June 9, 2026 farewell remarks at the U.S. Chamber of Commerce Capital Markets Summit offer a concise statement of administrative-law discipline for the SEC. Her remarks underscore a defining theme of her tenure: the Commission’s authority is substantial, but bounded by statute and the Constitution. This analysis considers Commissioner Peirce’s views on SEC authority, capital markets, digital-asset regulation, custody, investor protection, enforcement, disclosure, and the importance of lawful regulatory restraint. Thu, 11 Jun 2026 13:27:50 GMT https://braedenanderson.com/insights/cftc-proposes-framework-for-reviewing-event-contracts-tied-to-gaming-sports-and-other-enumerated-activities https://braedenanderson.com/insights/cftc-proposes-framework-for-reviewing-event-contracts-tied-to-gaming-sports-and-other-enumerated-activities The Commodity Futures Trading Commission has proposed a new framework for reviewing event contracts, including sports-related prediction markets, under Section 5c(c)(5)(C) of the Commodity Exchange Act. The proposal would establish a structured process for determining whether contracts involving gaming, terrorism, war, assassination, or unlawful activities are contrary to the public interest. The rulemaking represents the latest step in the CFTC’s effort to balance innovation in prediction markets with its statutory mandate to protect market integrity. Wed, 10 Jun 2026 21:00:06 GMT https://braedenanderson.com/insights/sec-warns-investment-advisers-economic-conflicts-remain-a-major-examination-priority https://braedenanderson.com/insights/sec-warns-investment-advisers-economic-conflicts-remain-a-major-examination-priority The SEC’s latest Risk Alert sends a clear message to investment advisers: economic conflicts of interest remain a core examination priority, and many firms continue to struggle with how those conflicts are disclosed, monitored, and managed. Wed, 10 Jun 2026 02:52:08 GMT https://braedenanderson.com/insights/financial-regulation https://braedenanderson.com/insights/financial-regulation FINANCIAL REGULATION Mon, 08 Jun 2026 20:06:47 GMT https://braedenanderson.com/insights/digital-assets https://braedenanderson.com/insights/digital-assets DIGITAL ASSETS Mon, 08 Jun 2026 19:59:16 GMT https://braedenanderson.com/insights/investigations https://braedenanderson.com/insights/investigations INVESTIGATIONS Mon, 08 Jun 2026 19:55:13 GMT https://braedenanderson.com/insights/sec-enforcement https://braedenanderson.com/insights/sec-enforcement SEC ENFORCEMENT Mon, 08 Jun 2026 19:49:58 GMT https://braedenanderson.com/insights/supreme-court-preserves-sec-disgorgement-without-proof-of-investor-loss https://braedenanderson.com/insights/supreme-court-preserves-sec-disgorgement-without-proof-of-investor-loss The Supreme Court’s decision in Sripetch v. SEC holds that the Securities and Exchange Commission does not need to prove investor financial loss to obtain disgorgement. The Court reasoned that disgorgement is measured by the wrongdoer’s gain, not the investor’s loss. The ruling resolves a circuit split involving the Second Circuit’s decision in Govil and the First and Ninth Circuits’ decisions in Navellier and Sripetch. The decision strengthens the SEC’s enforcement authority but leaves unresolved whether disgorgement under § 78u(d)(7) is a legal remedy requiring a jury trial after Jarkesy. Sat, 06 Jun 2026 14:33:52 GMT https://braedenanderson.com/insights/privilege-in-the-age-of-ai-what-clients-need-to-understand-before-they-press-submit https://braedenanderson.com/insights/privilege-in-the-age-of-ai-what-clients-need-to-understand-before-they-press-submit The recent decision in United States v. Heppner should prompt every company, executive, founder, investor, and professional to revisit how they use artificial intelligence tools for legal and compliance issues. An AI platform is not a lawyer. Asking ChatGPT, Claude, Gemini, or any similar tool for legal guidance does not create an attorney-client relationship. It does not transform the user’s prompt into a privileged communication. And it does not place the exchange beyond the reach of prosecutors, regulators, civil litigants, or discovery subpoenas. Fri, 29 May 2026 22:59:17 GMT https://braedenanderson.com/insights/contact https://braedenanderson.com/insights/contact Discuss a Securities, Enforcement, Crypto, or Financial Services Matter Submit a confidential inquiry below. Braeden Anderson reviews inquiries involving SEC and FINRA enforcement, securities and commodities regulation, digital assets, fintech, broker-dealer and investment adviser issues, and finan Thu, 28 May 2026 21:02:08 GMT https://braedenanderson.com/insights/the-new-fintech-executive-order-is-a-signal-to-regulators https://braedenanderson.com/insights/the-new-fintech-executive-order-is-a-signal-to-regulators President Trump’s May 19, 2026 Executive Order on fintech innovation directs federal financial regulators to reexamine whether their existing rules, guidance, supervisory practices, and application processes are unnecessarily slowing the integration of fintech firms, digital assets, and innovative financial technology into the regulated financial system. Thu, 21 May 2026 19:13:28 GMT https://braedenanderson.com/insights/17-cfr-part-229-explained-regulation-s-k-sec-disclosure-rules-business-description-risk-factors-mdampa-cybersecurity-executive-compensation-exhibits-and-public-company-reporting https://braedenanderson.com/insights/17-cfr-part-229-explained-regulation-s-k-sec-disclosure-rules-business-description-risk-factors-mdampa-cybersecurity-executive-compensation-exhibits-and-public-company-reporting A practical guide to 17 CFR Part 229, Regulation S-K, the SEC’s narrative disclosure rules for business descriptions, risk factors, MD&A, cybersecurity, legal proceedings, non-GAAP measures, executive compensation, governance, exhibits, and public company reporting. Tue, 19 May 2026 20:26:56 GMT https://braedenanderson.com/insights/17-cfr-part-210-explained-regulation-s-x-sec-financial-statements-auditor-independence-acquired-business-financials-pro-forma-financial-information-and-public-company-reporting https://braedenanderson.com/insights/17-cfr-part-210-explained-regulation-s-x-sec-financial-statements-auditor-independence-acquired-business-financials-pro-forma-financial-information-and-public-company-reporting A practical guide to 17 CFR Part 210, Regulation S-X, the SEC’s rules for financial statements, auditor independence, accountants’ reports, acquired business financials, pro forma financial information, internal controls, and public company reporting. Tue, 19 May 2026 20:02:25 GMT https://braedenanderson.com/insights/17-cfr-part-209-explained-sec-forms-under-the-rules-of-practice-form-d-a-asset-disclosure-and-financial-information https://braedenanderson.com/insights/17-cfr-part-209-explained-sec-forms-under-the-rules-of-practice-form-d-a-asset-disclosure-and-financial-information A practical guide to 17 CFR Part 209, the SEC’s rules on forms prescribed under the Rules of Practice, including Form D-A for disclosure of assets and financial information in SEC enforcement, penalty, disgorgement, collection, and ability-to-pay matters. Tue, 19 May 2026 19:45:23 GMT https://braedenanderson.com/insights/17-cfr-part-205-explained-sec-attorney-conduct-rules-reporting-up-the-ladder-issuer-representation-supervisory-duties-and-attorney-discipline https://braedenanderson.com/insights/17-cfr-part-205-explained-sec-attorney-conduct-rules-reporting-up-the-ladder-issuer-representation-supervisory-duties-and-attorney-discipline A practical guide to 17 CFR Part 205, the SEC attorney conduct rules governing lawyers appearing and practicing before the Commission in issuer representations, including up-the-ladder reporting, issuer-as-client duties, supervisory attorney responsibilities, subordinate attorney duties, sanctions, discipline, and no private right of action. Tue, 19 May 2026 19:31:19 GMT https://braedenanderson.com/insights/17-cfr-part-204-explained-sec-debt-collection-rules-administrative-offset-salary-offset-tax-refund-offset-wage-garnishment-and-collection-procedures https://braedenanderson.com/insights/17-cfr-part-204-explained-sec-debt-collection-rules-administrative-offset-salary-offset-tax-refund-offset-wage-garnishment-and-collection-procedures A practical guide to 17 CFR Part 204, the SEC’s rules on debt collection, administrative offset, salary offset, tax refund offset, administrative wage garnishment, credit bureau reporting, collection services, and collection agency referrals. Tue, 19 May 2026 19:16:03 GMT https://braedenanderson.com/insights/17-cfr-part-203-explained-sec-rules-relating-to-investigations-formal-orders-witness-rights-transcripts-and-subpoenas https://braedenanderson.com/insights/17-cfr-part-203-explained-sec-rules-relating-to-investigations-formal-orders-witness-rights-transcripts-and-subpoenas A practical guide to 17 CFR Part 203, the SEC’s rules on investigations, formal investigative proceedings, subpoenas, testimony transcripts, witness rights, and information obtained in SEC investigations and examinations. Tue, 19 May 2026 18:49:41 GMT https://braedenanderson.com/insights/17-cfr-part-202-explained-sec-informal-procedures-interpretive-advice-enforcement-activities-cooperation-criminal-referrals-and-pcaob-review https://braedenanderson.com/insights/17-cfr-part-202-explained-sec-informal-procedures-interpretive-advice-enforcement-activities-cooperation-criminal-referrals-and-pcaob-review A practical guide to 17 CFR Part 202, the SEC’s rules on informal procedures, pre-filing assistance, interpretive advice, enforcement activities, cooperation, criminal referrals, Investment Company Act applications, and PCAOB review. Tue, 19 May 2026 18:35:32 GMT https://braedenanderson.com/insights/17-cfr-part-201-explained-sec-rules-of-practice-administrative-proceedings-hearings-appeals-sanctions-and-fair-funds https://braedenanderson.com/insights/17-cfr-part-201-explained-sec-rules-of-practice-administrative-proceedings-hearings-appeals-sanctions-and-fair-funds A practical guide to 17 CFR Part 201, the SEC Rules of Practice governing administrative proceedings, OIPs, filings, motions, subpoenas, hearings, appeals, sanctions, temporary cease-and-desist orders, disgorgement, penalties, and Fair Funds. Tue, 19 May 2026 17:33:11 GMT https://braedenanderson.com/insights/17-cfr-part-200-explained-sec-organization-authority-divisions-and-enforcement https://braedenanderson.com/insights/17-cfr-part-200-explained-sec-organization-authority-divisions-and-enforcement 17 CFR Part 200 explains the SEC’s organization, statutory authority, division responsibilities, regional offices, ethics rules, and delegated authority. This guide explains what the rule says and why it matters for SEC investigations, examinations, broker-dealer issues, investment adviser matters, disclosure questions, and financial regulatory strategy. Tue, 19 May 2026 17:12:35 GMT https://braedenanderson.com/insights/ai-fintech-startups-are-building-money-businesses-financial-regulation-comes-earlier-than-founders-think https://braedenanderson.com/insights/ai-fintech-startups-are-building-money-businesses-financial-regulation-comes-earlier-than-founders-think AI fintech startups may need financial regulatory counsel when their products involve money transmission, payments, custody, RIA registration, broker-dealer registration, digital assets, stablecoins, AML, sanctions, capital formation, or bank partnerships. This article explains the key legal questions founders should ask before launching, scaling, fundraising, or responding to regulatory scrutiny. Tue, 19 May 2026 16:38:28 GMT https://braedenanderson.com/insights/boston-securities-regulation-lawyer-for-sec-finra-financial-services-and-digital-asset-matters https://braedenanderson.com/insights/boston-securities-regulation-lawyer-for-sec-finra-financial-services-and-digital-asset-matters K. Braeden Anderson , a partner at Gesmer Updegrove LLP in Boston, represents clients across the United States in securities regulation, securities enforcement, financial services regulation, SEC investigations, FINRA matters, broker-dealer and investment adviser issues, internal investigations, private funds, capital formation, fintech, blockchain, and digital asset matters. Tue, 19 May 2026 16:19:05 GMT https://braedenanderson.com/insights/best-lawyers-chatgpt-and-the-future-of-how-clients-find-securities-regulation-lawyers https://braedenanderson.com/insights/best-lawyers-chatgpt-and-the-future-of-how-clients-find-securities-regulation-lawyers Clients searching for a securities regulation lawyer in Boston may soon be doing more than searching Google, asking colleagues, or reviewing law firm websites. They may be asking ChatGPT. Best Lawyers recently announced a ChatGPT app designed to help users find lawyers and law firms through conversational AI. Tue, 19 May 2026 16:08:30 GMT https://braedenanderson.com/insights/from-meme-stocks-to-market-structure-why-wallstreetbets-sec-comment-letter-matters https://braedenanderson.com/insights/from-meme-stocks-to-market-structure-why-wallstreetbets-sec-comment-letter-matters For years, WallStreetBets occupied a strange place in American finance. To some, it was internet chaos masquerading as investing. To others, it became a symbol of populist resistance against Wall Street institutions perceived to hold structural advantages over ordinary investors. At different moments, the community has been described as reckless, manipulative, hilarious, irresponsible, democratizing, dangerous, and misunderstood, often all at once. Now, the same online community that helped fuel the GameStop frenzy, triggered Congressional hearings, embarrassed hedge funds, and forced regulators to confront the power of coordinated retail trading has entered a very different arena: SEC rulemaking. Mon, 18 May 2026 20:36:07 GMT https://braedenanderson.com/insights/sec-moves-toward-rescinding-no-deny-settlement-policy https://braedenanderson.com/insights/sec-moves-toward-rescinding-no-deny-settlement-policy The White House is reviewing the SEC’s plan to rescind its long-standing “no admit, no deny” settlement policy, often criticized as a “gag rule.” The proposal, listed by OIRA as “Rescission of Policy Regarding Denials in Settlements of Enforcement Actions,” could reshape SEC enforcement settlements by allowing companies and individuals to resolve cases without being barred from publicly disputing the allegations. Tue, 12 May 2026 13:50:51 GMT https://braedenanderson.com/insights/sec-proposes-optional-semiannual-reporting-regime-for-us-public-companies https://braedenanderson.com/insights/sec-proposes-optional-semiannual-reporting-regime-for-us-public-companies On May 5, 2026, the Securities and Exchange Commission proposed one of the most consequential changes to the U.S. public company disclosure regime in decades: an optional framework that would permit Exchange Act reporting companies to file semiannual reports instead of quarterly reports. Braeden Anderson breaks it all down. Thu, 07 May 2026 13:23:19 GMT https://braedenanderson.com/insights/securities-law-analysis-of-gamestops-proposed-acquisition-of-ebay https://braedenanderson.com/insights/securities-law-analysis-of-gamestops-proposed-acquisition-of-ebay GameStop’s proposed $55.5 billion acquisition of eBay presents a highly controversial and complex case in modern mergers and acquisitions, raising significant securities law, corporate governance, and disclosure issues. The deal highlights the risks of using volatile stock as acquisition currency, particularly where massive dilution, non-binding financing commitments, and coercive tender offer structures are involved. Legal scrutiny is likely to focus on compliance with SEC disclosure requirements under the Securities Act and Exchange Act, as well as Delaware fiduciary duty standards under cases like Unocal and Airgas. As markets react and shareholders assess the true economic impact of the transaction, the proposal underscores the limits of aggressive, stock-financed takeovers in today’s regulatory and financial environment. Tue, 05 May 2026 14:26:05 GMT https://braedenanderson.com/insights/cftc-expands-no-action-relief-for-railbird-contracts https://braedenanderson.com/insights/cftc-expands-no-action-relief-for-railbird-contracts The CFTC’s Division of Market Oversight and Division of Clearing and Risk issued Letter No. 26-13 on May 4, 2026, granting supplemental no-action relief that allows Bitnomial Clearinghouse to replace QC Clearing for Railbird Contracts while removing prior restrictions on third-party intermediation, a development that signals increased regulatory flexibility within the swap reporting and recordkeeping framework under Parts 43 and 45; the relief remains conditioned on full collateralization, real-time trade transparency, and robust recordkeeping obligations, reinforcing that while the Commission continues to accommodate evolving derivatives market structures, particularly in the context of event-based and binary-style contracts, it is doing so within a controlled framework that preserves oversight, mitigates risk, and maintains the integrity of core compliance requirements under the Commodity Exchange Act. Tue, 05 May 2026 13:51:33 GMT https://braedenanderson.com/insights/when-handshakes-turn-into-lawsuits-the-securities-law-lessons-behind-edelman-v-swissa https://braedenanderson.com/insights/when-handshakes-turn-into-lawsuits-the-securities-law-lessons-behind-edelman-v-swissa Julian Edelman’s lawsuit over a $50M business sale highlights critical securities law risks. Learn why handshake deals fail and why legal counsel is essential in equity and partnership agreements. Mon, 04 May 2026 17:46:52 GMT https://braedenanderson.com/insights/us-regulators-intensify-scrutiny-of-private-credit-markets-amid-liquidity-and-valuation-concerns https://braedenanderson.com/insights/us-regulators-intensify-scrutiny-of-private-credit-markets-amid-liquidity-and-valuation-concerns U.S. financial regulators have initiated a coordinated and increasingly focused review of the private credit market, reflecting growing concern regarding liquidity pressures, valuation practices, and potential systemic risk. Tue, 28 Apr 2026 21:04:47 GMT https://braedenanderson.com/insights/cftc-files-amicus-brief-reaffirming-jurisdiction-over-prediction-markets https://braedenanderson.com/insights/cftc-files-amicus-brief-reaffirming-jurisdiction-over-prediction-markets On April 24, 2026, the Commodity Futures Trading Commission submitted an amicus brief before the Massachusetts Supreme Judicial Court in Commonwealth of Massachusetts v. KalshiEx LLC , reinforcing its position that event contract markets, commonly referred to as prediction markets, fall within the Commission’s exclusive jurisdiction under the Commodity Exchange Act. Mon, 27 Apr 2026 14:09:16 GMT https://braedenanderson.com/insights/the-cftcs-first-insider-trading-case-in-prediction-markets-signals-a-structural-shift https://braedenanderson.com/insights/the-cftcs-first-insider-trading-case-in-prediction-markets-signals-a-structural-shift In CFTC v. Van Dyke, filed in the Southern District of New York on April 23, 2026, the Commission charged an active-duty U.S. Army service member with insider trading based on the alleged misuse of classified information tied to a planned U.S. operation involving Nicolás Maduro. The defendant is alleged to have generated more than $400,000 in profits through trades on Polymarket event contracts. Fri, 24 Apr 2026 04:09:16 GMT https://braedenanderson.com/insights/when-delay-becomes-the-penalty-what-the-lek-securities-appeal-reveals-about-sec-review-of-sro-sanctions https://braedenanderson.com/insights/when-delay-becomes-the-penalty-what-the-lek-securities-appeal-reveals-about-sec-review-of-sro-sanctions In the law of securities regulation, procedure often decides substance. That is what makes the Lek Securities matter so important. The case is not only about whether the New York Stock Exchange got the merits right when it sanctioned Lek Securities. It is also about what happens when the Securities and Exchange Commission, which Congress placed between SRO discipline and judicial review, takes the better part of a decade to do its job. Wed, 22 Apr 2026 15:54:12 GMT https://braedenanderson.com/insights/new-yorks-suit-against-coinbase-over-prediction-markets https://braedenanderson.com/insights/new-yorks-suit-against-coinbase-over-prediction-markets New York just took a swing at Coinbase. This is the latest case in a growing wave of state-level challenges targeting prediction markets. States are moving to classify these platforms as unlicensed gambling operations, as market participants and federal regulators frame them as legitimate financial products. The Commodity Futures Trading Commission, along with the federal government, has not been shy about defending its jurisdiction over event contracts, taking the position that these markets fall within the federal derivatives framework under the Commodity Exchange Act. This is part of a widening, multi-front battle between state regulators and federal authorities over who gets to define and oversee prediction markets. Wed, 22 Apr 2026 05:33:36 GMT https://braedenanderson.com/insights/braeden-anderson https://braedenanderson.com/insights/braeden-anderson Braeden Anderson is a partner at Gesmer Updegrove LLP and leads the firm’s Securities Regulation & Financial Services and Securities Enforcement and Investigations practice areas. Braeden is a nationally recognized securities regulatory, enforcement, and financial services lawyer whose experience includes prior roles at Sidley Austin LLP, Kirkland & Ellis LLP, and Robinhood Markets, Inc. He advises clients in government investigations, enforcement proceedings, internal investigations, fintech and digital asset regulatory matters, broker-dealer and investment adviser issues, and complex regulatory disputes. In the 2025 and 2026 editions of Best Lawyers: Ones to Watch® in America , Braeden achieved recognition in Financial Services Regulation Law and Securities Regulation , a peer-review honor awarded to only the top 2% of attorneys in the United States. Braeden is a nationally visible writer, commentator, and multimedia creator on securities enforcement, fintech regulation, digital assets, market structure, broker-dealer regulation, and investment adviser issues. ‍In addition to being a frequent contributor and commentator in Bloomberg Law and Law360, Braeden is the founder and principal author of Anderson Insights where he publishes practical analysis on SEC enforcement, FINRA developments, crypto policy, tokenized securities, prediction markets, and emerging financial regulation. The Anderson Insights platform also includes a YouTube channel with more than 170,000 subscribers. In 2025, he was named the #1 United States author in FinTech in Mondaq’s Spring 2025 Thought Leadership Awards . Braeden is active in the U.S. securities enforcement community through Securities Docket , where he has served on the 2025 and 2026 Advisory Boards and contributed video commentary through the Weekly Update .‍ Braeden also holds international leadership roles through Chambers USA ranked Mackrell International , where he chairs the network’s Blockchain & Digital Assets Group and Securities Enforcement & Investigations Group which brings together experienced counsel from multiple jurisdictions to deliver coordinated representation in complex regulatory and enforcement matters. Tue, 21 Apr 2026 19:28:41 GMT https://braedenanderson.com/insights/sec-and-cftc-propose-targeted-changes-to-form-pf-reporting-framework https://braedenanderson.com/insights/sec-and-cftc-propose-targeted-changes-to-form-pf-reporting-framework The SEC and CFTC proposed amendments to Form PF that would significantly reduce reporting burdens by raising filing thresholds and streamlining requirements. While many advisers would fall out of scope, regulators would retain visibility over most assets, reflecting a shift toward focusing oversight on larger, potentially systemic private fund managers. Tue, 21 Apr 2026 02:44:30 GMT https://braedenanderson.com/insights/the-allbirds-identity-crisis https://braedenanderson.com/insights/the-allbirds-identity-crisis Allbirds’ pivot from sustainable footwear to artificial intelligence infrastructure has captured investor attention while raising legal and strategic concerns. The company plans to sell its core shoe business and rebrand as “Newbird AI,” with a reported $50 million investment in GPU computing. Although the announcement briefly boosted its stock, gains quickly reversed as questions emerged about execution and scale. Mon, 20 Apr 2026 17:53:48 GMT https://braedenanderson.com/insights/finra-modernizes-new-member-application-process-with-substantive-consequences https://braedenanderson.com/insights/finra-modernizes-new-member-application-process-with-substantive-consequences FINRA has modernized the mechanics of entry into the broker-dealer regulatory framework. The April 2026 rollout of the enhanced New Member Application (Form NMA) reflects a deliberate effort to standardize, digitize, and streamline the Membership Application Program (MAP). While FINRA has been clear that the underlying Standards for Admission remain unchanged, the redesigned process materially affects how those standards are demonstrated, evaluated, and ultimately satisfied. Sun, 19 Apr 2026 14:20:09 GMT https://braedenanderson.com/insights/securities-law-in-times-of-war https://braedenanderson.com/insights/securities-law-in-times-of-war Geopolitical conflict creates immediate and complex disclosure obligations for public companies. Under Section 10(b) of the Securities Exchange Act, Rule 10b-5, and Item 303 of Regulation S-K, issuers must evaluate and disclose known trends and uncertainties, including the impact of war, sanctions, supply chain disruption, and cybersecurity risk, where reasonably likely to affect financial condition or results of operations. Recent SEC guidance, including its Ukraine-related comment letters, reinforces that geopolitical events must be analyzed across MD&A, risk factors, financial statements, and disclosure controls. Fri, 17 Apr 2026 01:48:27 GMT https://braedenanderson.com/insights/sec-opens-broad-review-of-the-consolidated-audit-trail-signals-potential-structural-reforms https://braedenanderson.com/insights/sec-opens-broad-review-of-the-consolidated-audit-trail-signals-potential-structural-reforms On April 16, 2026, the Securities and Exchange Commission issued a concept release soliciting public comment on the Consolidated Audit Trail (CAT) and related audit trails and data sources used in the oversight of U.S. securities markets. The release initiates what the Commission describes as a comprehensive review of the CAT’s purpose, structure, cost, and scope, and signals that more fundamental changes to the system may be under consideration. Thu, 16 Apr 2026 21:02:00 GMT https://braedenanderson.com/insights/code-without-a-license-the-sec-signals-a-path-for-crypto-interfaces-outside-broker-registration https://braedenanderson.com/insights/code-without-a-license-the-sec-signals-a-path-for-crypto-interfaces-outside-broker-registration The SEC has drawn a new line between software and securities intermediaries. This analysis examines the implications for DeFi interfaces, transaction-based fees, and evolving market structure. Thu, 16 Apr 2026 03:00:46 GMT https://braedenanderson.com/insights/the-secs-bail-in-position-prioritizes-function-over-formalism https://braedenanderson.com/insights/the-secs-bail-in-position-prioritizes-function-over-formalism The SEC’s no-action letter to the Bank of England signals a shift in how U.S. securities law applies to cross-border bank resolution. By allowing reliance on Section 3(a)(9) in bail-in scenarios, the SEC is prioritizing market stability over formal registration requirements. Chairman Paul Atkins’ call for broader rulemaking suggests a potential exemption for securities issued during regulatory bail-ins. This development has significant implications for asset managers, broker-dealers, and institutions with exposure to foreign banks. It reflects a more pragmatic approach to global financial regulation and highlights the tension between investor protection and systemic stability in crisis scenarios. Wed, 15 Apr 2026 23:33:28 GMT https://braedenanderson.com/insights/fincen-proposes-sweeping-changes-to-amlcft-compliance-structure https://braedenanderson.com/insights/fincen-proposes-sweeping-changes-to-amlcft-compliance-structure FinCEN’s 2026 AML/CFT proposal reshapes compliance by focusing on risk-based programs, effectiveness, and reduced regulatory burden. Attorney Braeden Anderson provides a detailed legal analysis of what it means for financial institutions. Sat, 11 Apr 2026 22:54:33 GMT https://braedenanderson.com/insights/is-avalanche-a-security-the-secs-2026-framework-just-made-the-answer-more-interesting https://braedenanderson.com/insights/is-avalanche-a-security-the-secs-2026-framework-just-made-the-answer-more-interesting Avalanche sits at the center of the SEC’s evolving crypto framework, and as a securities law nerd, this is the kind of debate I genuinely enjoy. With the agency’s 2026 interpretation recognizing “digital commodities” and Ava Labs advancing a functional, infrastructure-first approach, the analysis is becoming more precise. This piece explores whether AVAX fits within securities law, how the SEC’s latest guidance reshapes the landscape, and where automation, liability, and real-world network activity still leave meaningful open questions. Tue, 07 Apr 2026 15:05:47 GMT https://braedenanderson.com/insights/cftc-files-actions-against-three-states-over-regulation-of-prediction-markets https://braedenanderson.com/insights/cftc-files-actions-against-three-states-over-regulation-of-prediction-markets The CFTC did what needed to be done. The tension between federal derivatives law and state gambling regimes around prediction markets has been building for years, with states pushing back through enforcement. This move forces the issue into a federal forum and puts jurisdiction squarely where the Commodity Exchange Act says it belongs. It also reflects the underlying competitive dynamic, as these markets sit directly alongside state-regulated gaming. For participants in the space, this is a meaningful step toward clarity and stability. Fri, 03 Apr 2026 13:57:33 GMT https://braedenanderson.com/insights/robo-advisers-under-the-advisers-act-a-complete-framework-for-building-registering-and-governing-a-digital-investment-adviser https://braedenanderson.com/insights/robo-advisers-under-the-advisers-act-a-complete-framework-for-building-registering-and-governing-a-digital-investment-adviser Robo-advisers are not a regulatory shortcut. They are fully regulated investment advisers operating through code. While automation reduces human infrastructure, it embeds fiduciary duties, disclosure obligations, and compliance requirements directly into the platform. For fintech founders and financial institutions, success depends on designing systems that satisfy the Advisers Act at scale. Thu, 02 Apr 2026 13:52:47 GMT https://braedenanderson.com/insights/the-46-million-crypto-theft-case-against-john-daghita-exposes-a-government-custody-failure https://braedenanderson.com/insights/the-46-million-crypto-theft-case-against-john-daghita-exposes-a-government-custody-failure The DOJ’s indictment of John Dean Daghita for the alleged theft of $46 million in U.S. Marshals Service crypto assets reveals a deeper institutional breakdown: flawed custody design, concentrated authority, and a failure to apply basic financial controls to digital assets. Wed, 01 Apr 2026 21:39:10 GMT https://braedenanderson.com/insights/the-fiction-of-the-small-adviser-and-the-coming-reckoning-in-sec-rulemaking https://braedenanderson.com/insights/the-fiction-of-the-small-adviser-and-the-coming-reckoning-in-sec-rulemaking The SEC’s definition of a “small investment adviser” hasn’t kept up with reality, and it shows in how rules are written and analyzed. Firms managing $150–300 million in AUM are still treated like large institutions, even though many are lean, founder-led operations navigating real compliance strain. A proposed shift to a $1 billion threshold is a step in the right direction, but without legislative backing, it may not stick. This piece breaks down why the definition matters, how it shapes regulatory outcomes, and what needs to happen next. Tue, 31 Mar 2026 01:03:21 GMT https://braedenanderson.com/insights/the-consolidated-audit-trail-enters-a-more-disciplined-phase https://braedenanderson.com/insights/the-consolidated-audit-trail-enters-a-more-disciplined-phase The SEC’s 2026 CAT amendment reduces costs, limits data retention, and introduces a spending cap. Key implications for broker-dealers and market structure. Sat, 28 Mar 2026 20:31:39 GMT https://braedenanderson.com/insights/a-linkedin-like-judicial-recusal-and-the-limits-of-appearance https://braedenanderson.com/insights/a-linkedin-like-judicial-recusal-and-the-limits-of-appearance A Securities Docket poll showing 85% support for judicial recusal has sparked renewed debate after Elon Musk’s legal team moved to disqualify a Delaware judge over a LinkedIn “like.” This piece examines how that poll reflects public sentiment, while contrasting it with the governing legal standards for recusal under Delaware law and key precedent like Liteky and Caperton. The result is a clear tension between optics and doctrine, with the law suggesting a far higher threshold for disqualification than the poll implies. Wed, 25 Mar 2026 13:16:15 GMT https://braedenanderson.com/insights/the-secs-ally-invest-order-and-the-real-price-of-free-robo-advice https://braedenanderson.com/insights/the-secs-ally-invest-order-and-the-real-price-of-free-robo-advice The SEC’s case against Ally Invest is a reminder that “no fee” does not mean no conflict. When incentives shape portfolio design, advisers must say so clearly. A closer look at disclosure, fiduciary duty, and where robo-advisers get it wrong. Tue, 24 Mar 2026 19:44:43 GMT https://braedenanderson.com/insights/jury-returns-split-verdict-in-pampena-v-musk https://braedenanderson.com/insights/jury-returns-split-verdict-in-pampena-v-musk A federal jury delivered a split verdict in Pampena v. Musk, a rare securities class action tied to Elon Musk’s Twitter acquisition. The case highlights growing exposure around public statements, including social media, and their impact on stock prices during M&A transactions. Mon, 23 Mar 2026 13:16:14 GMT https://braedenanderson.com/insights/finra-reconsiders-the-prohibition-on-performance-projections-a-measured-shift-in-rule-2210 https://braedenanderson.com/insights/finra-reconsiders-the-prohibition-on-performance-projections-a-measured-shift-in-rule-2210 FINRA’s proposed amendments to Rule 2210 signal a meaningful evolution in broker-dealer communications, moving away from a categorical prohibition on performance projections toward a principles-based framework grounded in substantiation and disclosure. The proposal reflects both market realities and regulatory convergence, while placing renewed emphasis on rigor, transparency, and supervisory oversight. Fri, 20 Mar 2026 00:20:50 GMT https://braedenanderson.com/insights/howey-reconstructed-the-emergence-of-a-temporal-theory-of-securities-regulation https://braedenanderson.com/insights/howey-reconstructed-the-emergence-of-a-temporal-theory-of-securities-regulation The SEC’s 2026 interpretive framework on crypto does more than clarify how Howey applies, it introduces a long-missing concept into securities law: time. In Howey Reconstructed , we examine how the Commission reframes the investment contract as a dynamic condition rather than a static classification, and why that shift matters not just for digital assets, but for the future of securities regulation more broadly. The result is a more coherent, lifecycle-based approach that finally addresses when the securities laws stop applying. Thu, 19 Mar 2026 20:24:27 GMT https://braedenanderson.com/insights/arizona-v-kalshi-criminal-enforcement-and-the-next-phase-of-the-prediction-market-reckoning https://braedenanderson.com/insights/arizona-v-kalshi-criminal-enforcement-and-the-next-phase-of-the-prediction-market-reckoning Arizona’s criminal charges against Kalshi mark a turning point in the regulation of prediction markets, escalating the conflict between federal commodities law and state gambling regimes. This article examines the legal and structural implications of the case, including preemption, CFTC authority, and the growing tension between derivatives markets and sportsbook regulation. As prediction markets continue to expand, this enforcement action may shape the future of event-based trading in the United States. Wed, 18 Mar 2026 16:10:15 GMT https://braedenanderson.com/insights/rule-15c2-11-and-the-cost-of-regulatory-drift https://braedenanderson.com/insights/rule-15c2-11-and-the-cost-of-regulatory-drift The SEC’s proposed amendments to Rule 15c2-11 mark a long-overdue correction to years of regulatory uncertainty affecting fixed-income markets. By narrowing the rule’s scope to equity securities, the Commission is realigning its application with market reality and prior intent. This article breaks down what went wrong, why it matters, and what the proposal signals for future rulemaking and regulatory discipline. Tue, 17 Mar 2026 22:48:07 GMT https://braedenanderson.com/insights/the-sec-closes-the-loop-on-howeys-application-to-crypto https://braedenanderson.com/insights/the-sec-closes-the-loop-on-howeys-application-to-crypto The SEC’s March 17, 2026 crypto guidance marks a turning point in digital asset regulation. By clarifying token classifications and, critically, when an investment contract begins and ends under Howey, the Commission introduces a lifecycle-based framework that brings long-awaited structure to the market. This article breaks down what the new interpretation means for crypto projects, investors, and regulatory strategy going forward. Tue, 17 Mar 2026 21:10:24 GMT https://braedenanderson.com/insights/the-secs-new-enforcement-manual-signals-a-procedural-reset-in-securities-enforcement https://braedenanderson.com/insights/the-secs-new-enforcement-manual-signals-a-procedural-reset-in-securities-enforcement On February 24, 2026, the SEC’s Division of Enforcement published a revised Enforcement Manual . This article is a clean-room, original discussion of the press release and the 2026 Enforcement Manual . It is also meant to sit naturally inside the enforcement “throughline” I have been building on Anderson Insights : the idea that enforcement outcomes are increasingly driven by (i) data and surveillance sophistication, (ii) procedural architecture, and (iii) the downstream consequences of resolutions, often more than the headline penalty itself. Thu, 05 Mar 2026 20:56:08 GMT https://braedenanderson.com/insights/792knhrusbrtxim7yfyyt76qdfe1hx https://braedenanderson.com/insights/792knhrusbrtxim7yfyyt76qdfe1hx This piece analyzes the CFTC’s advisory confirming that prediction markets are regulated derivatives subject to anti-fraud and manipulation rules. Braeden Anderson explains how insider trading doctrines apply to event contracts and what this means for exchanges, fintech platforms, and sophisticated traders operating in evolving markets. Fri, 27 Feb 2026 21:18:25 GMT https://braedenanderson.com/insights/the-sec-division-of-trading-and-markets-crypto-faqs-operational-and-structural-implications https://braedenanderson.com/insights/the-sec-division-of-trading-and-markets-crypto-faqs-operational-and-structural-implications The SEC Division of Trading and Markets updated its crypto FAQs on February 19, 2026 to add new net capital guidance for “payment stablecoins.” Specifically, the staff states it will not object if a broker-dealer treats a proprietary position in a qualifying payment stablecoin as having a “ready market” under Rule 15c3-1 and applies a 2% haircut to the market value of the greater of the long or short position. Sat, 21 Feb 2026 01:05:47 GMT https://braedenanderson.com/insights/number-go-down-and-other-schadenfreude-the-sec-at-ethdenver https://braedenanderson.com/insights/number-go-down-and-other-schadenfreude-the-sec-at-ethdenver SEC Chairman Paul Atkins and Commissioner Hester Peirce used their ETHDenver 2026 remarks to outline the SEC’s evolving approach to crypto regulation, including a possible innovation exemption for tokenized securities, new guidance on investment contracts, and planned rulemaking on custody and transfer agent modernization. This post summarizes what they said and what it signals for crypto issuers, exchanges, broker-dealers, and blockchain developers. Thu, 19 Feb 2026 17:08:29 GMT https://braedenanderson.com/insights/cftc-chair-selig-signals-new-strength-on-prediction-markets-after-industry-commentary-calls-for-backbone https://braedenanderson.com/insights/cftc-chair-selig-signals-new-strength-on-prediction-markets-after-industry-commentary-calls-for-backbone Backbone confirmed. In a development that underscores the accelerating evolution of financial innovation policy, Commodity Futures Trading Commission Chairman Michael S. Selig has publicly articulated a significant shift in the agency’s posture on prediction markets — just days after my commentary highlighted expectations for decisive leadership. Fri, 30 Jan 2026 18:10:23 GMT https://braedenanderson.com/insights/the-secs-new-taxonomy-for-tokenized-securities-same-law-new-plumbing https://braedenanderson.com/insights/the-secs-new-taxonomy-for-tokenized-securities-same-law-new-plumbing On January 28, 2026, staff from the SEC’s Divisions of Corporation Finance, Investment Management, and Trading and Markets published a joint statement aimed at one thing: forcing the market to be precise about what, exactly, is being “tokenized.” What follows is our practitioner’s read: the taxonomy, the legal consequences that flow from each branch, and a compliance checklist for anyone building in the space. Thu, 29 Jan 2026 15:14:19 GMT https://braedenanderson.com/insights/referral-programs-finders-fees-and-interval-funds-how-to-grow-without-triggering-broker-dealer-or-marketing-rule-landmines https://braedenanderson.com/insights/referral-programs-finders-fees-and-interval-funds-how-to-grow-without-triggering-broker-dealer-or-marketing-rule-landmines Fintech founders love referral programs for the same reason regulators are skeptical of them: incentives work. If you are offering an interval fund direct-to-consumer (especially on a “self-distributed” model), a well-designed incentive program can become your most efficient acquisition channel. The wrong program, or the right program implemented the wrong way, can create problems fast: unregistered broker activity, improper compensated solicitation, and RIA Marketing Rule violations, often all at once. This article is meant to help you spot the issues early, frame the choices, and understand why “just pay people for referrals” is not a clean concept in the securities world. It is not a blueprint you can copy-paste into your business. The details matter, and the compliance architecture matters even more. Wed, 28 Jan 2026 17:22:33 GMT https://braedenanderson.com/insights/commissioner-uyedas-2026-disclosure-blueprint-what-enhancing-the-public-company-framework-could-mean-in-practice https://braedenanderson.com/insights/commissioner-uyedas-2026-disclosure-blueprint-what-enhancing-the-public-company-framework-could-mean-in-practice On January 26, 2026, SEC Commissioner Mark T. Uyeda delivered the Alan B. Levenson Keynote Address at the 53rd Annual Securities Regulation Institute in Coronado, California, laying out a clear theme for the Commission’s next phase of disclosure policy: tighten the focus on materiality, reduce low-value compliance load, and recalibrate requirements for smaller issuers. The speech is notable not just for its tone, but for its specificity. Uyeda does not speak in abstractions. He names the parts of Regulation S-K he thinks are ripe for revision and ties the policy direction to a broader institutional effort. Wed, 28 Jan 2026 16:26:15 GMT https://braedenanderson.com/insights/press https://braedenanderson.com/insights/press Quoted, Crypto Prediction Market Chiefs Gain Sway as CFTC Advisers, Bloomberg Law, Jan. 27, 2026 Author, “Insider Trading Doctrine in an AI Market,” Law360, Jan. 2026 Author, “The Tricky Issues Underscoring Prediction Market Regulation,” Law360, Dec. 2025 Quoted, SEC-CFTC Merger Debate Revived Wed, 28 Jan 2026 03:30:14 GMT https://braedenanderson.com/insights/8w44k4tv9t6e99p110gxpb46eo7aom https://braedenanderson.com/insights/8w44k4tv9t6e99p110gxpb46eo7aom Braeden Anderson, Sr. was quoted in Bloomberg Law ’s article, “Crypto, Prediction Market Chiefs Gain Sway as CFTC Advisers,” by Ben Miller , where he discussed the CFTC’s evolving approach to prediction markets: “The inclusion of prediction markets in the CFTC’s innovation architecture is a clear statement that the agency intends to treat event contracts as a legitimate market-structure category within its federal remit, not as a novelty to be tolerated until the states shut it down.” Anderson added, “I would not frame Selig as ‘pro-Kalshi’ in any cheerleading sense, but I also would not assume he will shy away from defending the CFTC’s institutional lane. Everyone is looking to Selig to provide backbone here.” Wed, 28 Jan 2026 03:15:33 GMT https://braedenanderson.com/insights/ai-is-not-a-substitute-for-sec-exam-counsel https://braedenanderson.com/insights/ai-is-not-a-substitute-for-sec-exam-counsel When an SEC exam request hits, some firms panic and start “Googling the exam” or relying on AI to decode what staff wants. That approach can backfire fast, leading to overproduction, credibility issues, privilege mistakes, and avoidable escalation risk. This article explains why AI is not a substitute for experienced SEC exam counsel, what exam staff is really testing, and how disciplined legal strategy can keep a routine examination from turning into a serious problem. Thu, 22 Jan 2026 20:35:26 GMT https://braedenanderson.com/insights/securities-docket-announces-its-2026-advisory-board-honored-to-serve-again https://braedenanderson.com/insights/securities-docket-announces-its-2026-advisory-board-honored-to-serve-again Excited to share that Securities Docket has released its Advisory Board for 2026, and I’m honored to be included among this year’s group of practitioners. Thu, 22 Jan 2026 14:23:55 GMT https://braedenanderson.com/insights/federal-point-shaving-indictments-and-the-legal-stakes-for-college-basketball https://braedenanderson.com/insights/federal-point-shaving-indictments-and-the-legal-stakes-for-college-basketball This case strikes at a fundamental tension in modern sports: the growing reach of legalized sports wagering colliding with the amateur status of college athletics. The charges underscore significant criminal and regulatory risks for athletes, institutions, and the broader collegiate ecosystem. Here is a legal analysis of the charges, defense considerations, and broader implications for stakeholders. Thu, 15 Jan 2026 15:34:08 GMT https://braedenanderson.com/insights/inside-finras-2026-oversight-agenda-emerging-risks-persistent-pitfalls-and-examination-focus-areas https://braedenanderson.com/insights/inside-finras-2026-oversight-agenda-emerging-risks-persistent-pitfalls-and-examination-focus-areas FINRA’s 2026 Oversight Report offers a clear preview of the examination and enforcement themes that will shape broker-dealer compliance in the year ahead. This piece distills the key risks, emerging priorities, and persistent problem areas firms should be addressing now. Tue, 13 Jan 2026 03:15:32 GMT https://braedenanderson.com/insights/virtu-as-a-thought-experiment-insider-trading-doctrine-in-an-ai-market https://braedenanderson.com/insights/virtu-as-a-thought-experiment-insider-trading-doctrine-in-an-ai-market I recently published an article in Law360 (linked below) that uses the U.S. Securities and Exchange Commission’s settlement with Virtu as a jumping-off point to think through a question MNPI doctrine has not fully confronted yet. The article is less about Virtu as a case study and more about using a familiar enforcement posture to explore how those same principles may apply as AI becomes embedded in trading, surveillance, and compliance functions. Tue, 13 Jan 2026 02:49:14 GMT https://braedenanderson.com/insights/sec-releases-staff-report-on-capital-raising-dynamics https://braedenanderson.com/insights/sec-releases-staff-report-on-capital-raising-dynamics On January 8, 2026, the SEC’s Office of the Advocate for Small Business Capital Formation released its annual staff report on capital-raising dynamics and delivered it to Congress. The report is not a policy document. It is a data compilation. But the data tells a clear story about how capital formation is functioning in practice. Tue, 13 Jan 2026 02:42:01 GMT https://braedenanderson.com/insights/crenshaws-exit-dissent-and-the-secs-troubled-crypto-record https://braedenanderson.com/insights/crenshaws-exit-dissent-and-the-secs-troubled-crypto-record Acknowledging the value of dissent does not require suspending scrutiny. It is fair, and necessary, to ask whether the SEC during the prior administration, and Crenshaw in particular, demonstrated sufficient command of the crypto markets they sought to regulate, and whether the agency’s approach over the past several years meaningfully advanced investor protection or instead imposed avoidable costs through uncertainty and inconsistency. Thu, 08 Jan 2026 17:48:43 GMT https://braedenanderson.com/insights/attorney-advertising https://braedenanderson.com/insights/attorney-advertising Attorney Advertising Not legal advice. Prior results do not guarantee a similar outcome. Sat, 20 Dec 2025 00:08:37 GMT https://braedenanderson.com/insights/fractional-services https://braedenanderson.com/insights/fractional-services Let Anderson Be Your General Counsel If you’re here, chances are you’re building something ambitious — and you want to make sure you’re doing things right from a legal and regulatory standpoint. You probably also have budget constraints and can’t justify a full-time legal hire just yet. I get it. Wed, 17 Dec 2025 17:29:31 GMT https://braedenanderson.com/insights/privacy https://braedenanderson.com/insights/privacy Privacy Policy Effective Date: August 13, 2024 1. Introduction This Privacy Policy outlines how Anderson P.C. ("we," "our," or "us") collects, uses, discloses, and protects your personal information when you visit and interact with our website, andersonlaws.com (the "Site"). We are committed to s Wed, 17 Dec 2025 17:29:31 GMT https://braedenanderson.com/insights/terms https://braedenanderson.com/insights/terms Terms of Service Effective Date: August 13, 2024 1. Introduction Welcome to the website of Anderson P.C. ("we," "our," or "us"). These Terms of Service ("Terms") govern your access to and use of our website, andersonlaws.com (the "Site"). By accessing or using our Site, you agree to comply with a Wed, 17 Dec 2025 17:29:31 GMT https://braedenanderson.com/insights/new-in-law360-the-tricky-issues-underscoring-prediction-market-regulation https://braedenanderson.com/insights/new-in-law360-the-tricky-issues-underscoring-prediction-market-regulation Law360 has published my latest analysis addressing the unresolved regulatory conflicts and market-structure risks now defining prediction markets. The article explains why the most important legal questions are no longer just about preemption, but about how these markets are structured, who provides liquidity, and what regulators and plaintiffs are likely to focus on next. Mon, 15 Dec 2025 21:10:46 GMT https://braedenanderson.com/insights/options-approval-supervision-and-where-disputes-commonly-arise https://braedenanderson.com/insights/options-approval-supervision-and-where-disputes-commonly-arise Options trading has become widely accessible to retail investors, particularly through online and app-based brokerage platforms. That accessibility, however, operates within a regulatory framework that assigns specific responsibilities to broker-dealers while preserving customer autonomy in self-directed accounts. Many disputes in this area arise not from market outcomes, but from questions about how that framework functions in practice. Sun, 14 Dec 2025 15:04:57 GMT https://braedenanderson.com/insights/cross-border-enforcement-understanding-finra-rule-8210-abroad https://braedenanderson.com/insights/cross-border-enforcement-understanding-finra-rule-8210-abroad In this video we unpack how FINRA asserts its investigative authority beyond U.S. borders through Rule 8210. Cross-border business is common, and many foreign individuals and firms are surprised to learn they can still be pulled into a FINRA inquiry. Thu, 04 Dec 2025 15:53:47 GMT https://braedenanderson.com/insights/nasdaqs-tokenization-proposal-a-conservative-revolution-in-us-market-structure https://braedenanderson.com/insights/nasdaqs-tokenization-proposal-a-conservative-revolution-in-us-market-structure You can’t understand Nasdaq’s tokenization proposal by asking what it adds. You understand it by seeing what it refuses to change. Nasdaq’s tokenization rule filing with the U.S. Securities and Exchange Commission is one of the most meaningful attempts yet to introduce blockchain-based representations of securities into the existing U.S. market structure. Sun, 30 Nov 2025 04:56:41 GMT https://braedenanderson.com/insights/sec-issues-no-action-letter-for-automatic-voting https://braedenanderson.com/insights/sec-issues-no-action-letter-for-automatic-voting In this video, we address the latest SEC “no-action” letter approving automatic voting for retail investors. The SEC’s Division of Corporation Finance told ExxonMobil that its staff would not recommend enforcement if the company launched a program allowing retail shareholders to cast standing voting instructions. Wed, 26 Nov 2025 02:30:32 GMT https://braedenanderson.com/insights/navigating-the-regulatory-filing-landscape-form-bd-nma-and-cma-explained https://braedenanderson.com/insights/navigating-the-regulatory-filing-landscape-form-bd-nma-and-cma-explained In today’s video , embedded below, we will examine three critical regulatory filings that broker-dealer applicants and existing members must understand: Form BD, the New Member Application (NMA) under FINRA Rule 1013, and the Continuing Membership Application (CMA) under Rule 1017. Wed, 26 Nov 2025 02:21:30 GMT https://braedenanderson.com/insights/money-transmitter-licenses-101 https://braedenanderson.com/insights/money-transmitter-licenses-101 If your product accepts value from one person and moves it to another person or location, you may be a money transmitter. That status triggers federal MSB registration and, in most states, a money transmitter license. Read more… Wed, 26 Nov 2025 02:15:13 GMT https://braedenanderson.com/insights/sec-says-state-trust-companies-can-custody-crypto https://braedenanderson.com/insights/sec-says-state-trust-companies-can-custody-crypto In my recent YouTube video, I discuss how the SEC is beginning to align its custody framework for digital assets with industry practice. The SEC’s Division of Investment Management has issued a no-action letter confirming that certain state-chartered trust companies may serve as qualified custodians for digital assets and related cash equivalents under the Investment Advisers Act and the Investment Company Act. Wed, 26 Nov 2025 02:07:29 GMT https://braedenanderson.com/insights/when-safety-meets-discrimination-law-the-uber-and-lyft-gender-only-ride-lawsuits https://braedenanderson.com/insights/when-safety-meets-discrimination-law-the-uber-and-lyft-gender-only-ride-lawsuits New class actions against Uber and Lyft challenge a question that lies at the intersection of safety innovation and anti-discrimination law: can a company lawfully exclude one gender from certain opportunities if its motive is to protect another? Sun, 09 Nov 2025 16:44:47 GMT https://braedenanderson.com/insights/the-new-cross-border-reality-how-the-sec-and-finra-are-reasserting-american-market-dominance https://braedenanderson.com/insights/the-new-cross-border-reality-how-the-sec-and-finra-are-reasserting-american-market-dominance The formation of the SEC’s Cross-Border Task Force, announced in Press Release No. 2025-113, marks a defining moment in the intersection of market regulation, geopolitics, and enforcement. This initiative is not a narrow response to isolated misconduct. It reflects a broader realignment of U.S. regulatory posture, one that treats access to American capital as a privilege tied to national interest rather than a neutral financial transaction. Wed, 05 Nov 2025 17:09:05 GMT https://braedenanderson.com/insights/sec-issues-no-action-for-automatic-voting-by-retail-shareholders https://braedenanderson.com/insights/sec-issues-no-action-for-automatic-voting-by-retail-shareholders This is massive, yet not many folks are talking about it. In September 2025, the Securities and Exchange Commission quietly approved automatic voting for our retail investors through a “no-action” letter. The SEC’s Division of Corporation Finance told ExxonMobil that its staff would not recommend enforcement if the company launched a program allowing retail shareholders to cast standing voting instructions. Meaning: retail shareholders can now automatically set their voting preferences. It may sound boring or too technical to matter, but this decision could reshape how millions of individual investors take part in corporate governance across the U.S. Thu, 30 Oct 2025 16:16:09 GMT https://braedenanderson.com/insights/sec-no-action-relief-for-state-trust-companies-custodying-digital-assets https://braedenanderson.com/insights/sec-no-action-relief-for-state-trust-companies-custodying-digital-assets The SEC is beginning to align its custody framework for digital assets with industry practice. The SEC’s Division of Investment Management has issued a no-action letter confirming that certain state-chartered trust companies may serve as qualified custodians for digital assets and related cash equivalents under the Investment Advisers Act and the Investment Company Act. This means that registered investment advisers and funds can now custody crypto assets with eligible state trust companies, entities the SEC staff is now willing to treat as “banks” for custody purposes. Thu, 30 Oct 2025 16:08:02 GMT https://braedenanderson.com/insights/secs-doublezero-no-action-letter-what-it-means-for-crypto-law https://braedenanderson.com/insights/secs-doublezero-no-action-letter-what-it-means-for-crypto-law The SEC is increasingly pro-crypto now. On September 29 2025, the SEC’s Division of Corporation Finance issued no-action relief to the DoubleZero Foundation, clearing its planned token distributions from the registration requirements of Section 5 of the Securities Act and Section 12(g) of the Exchange Act. This puts DoubleZero alongside projects such as TurnKey Jet, Pocketful of Quarters, and IMVU, a small group that has received similar relief for token distributions with clear, functional use cases. Thu, 30 Oct 2025 16:02:11 GMT https://braedenanderson.com/insights/the-411-on-money-transmission https://braedenanderson.com/insights/the-411-on-money-transmission Most people think money transmission laws only apply to banks, payment processors, or companies moving billions through the financial system. They’re wrong. If your product accepts any form of value (cash, crypto, stored value, loyalty points, stablecoins) and sends it somewhere else, even if that “somewhere” is just another person’s digital wallet, you might be a money transmitter. And that label changes everything. Thu, 30 Oct 2025 15:46:17 GMT https://braedenanderson.com/insights/sec-restores-simultaneous-consideration-of-settlement-offers-and-waiver-requests https://braedenanderson.com/insights/sec-restores-simultaneous-consideration-of-settlement-offers-and-waiver-requests This article and embedded video discusses the recent policy shift at the SEC regarding simultaneous consideration of settlement offers and related waiver requests in enforcement actions. The policy change reverses a 2021 decision under prior leadership that had required waiver requests to be considered separately, only after a settlement was finalized. Mon, 20 Oct 2025 17:05:19 GMT https://braedenanderson.com/insights/digital-asset-securities-a-legal-field-guide-for-builders https://braedenanderson.com/insights/digital-asset-securities-a-legal-field-guide-for-builders This session is a practical briefing on digital-asset and tokenized-securities market structure—what’s real today, what’s changing, and how to launch and operate on compliant rails. The talk is led by Braeden Anderson, Partner at Gesmer Updegrove LLP and head of the firm’s Securities Enforcement & Investigations practice. He represents public companies, fintechs, broker-dealers/ATSs, and founders with a focus on digital-asset and tokenized-securities market structure, offering design, custody and transfer-agent frameworks, and secondary trading issues Wed, 24 Sep 2025 18:37:24 GMT https://braedenanderson.com/insights/sec-to-host-roundtable-on-the-order-protection-rule-revisiting-two-decades-of-reg-nms https://braedenanderson.com/insights/sec-to-host-roundtable-on-the-order-protection-rule-revisiting-two-decades-of-reg-nms The U.S. Securities and Exchange Commission will host a public roundtable on September 18, 2025 to examine the Order Protection Rule (Rule 611 of Regulation NMS), and its analogues in the listed options markets. The discussion will focus on the rule’s longstanding “trade-through” prohibitions, which require trading centers to establish reasonable policies and procedures designed to prevent trades from occurring at prices inferior to protected quotations, subject to a web of exceptions. Mon, 18 Aug 2025 04:12:44 GMT https://braedenanderson.com/insights/sec-rule-2064-8-enforcement-standard-may-shift-in-the-atkins-era https://braedenanderson.com/insights/sec-rule-2064-8-enforcement-standard-may-shift-in-the-atkins-era The Securities and Exchange Commission’s recent leadership changes may signal a recalibration in the enforcement of Advisers Act Rule 206(4)-8, a cornerstone of the SEC’s oversight of investment advisers to pooled investment vehicles. With Chairman Paul Atkins returning to the agency, the Commission’s long-standing reliance on a negligence standard could soon be revisited. Mon, 18 Aug 2025 01:01:08 GMT https://braedenanderson.com/insights/the-pwg-report-on-digital-asset-markets https://braedenanderson.com/insights/the-pwg-report-on-digital-asset-markets The PWG report and the SEC’s announcement of Project Crypto mark the most significant federal policy movement in digital assets to date. While the statements carry a strong political tone, the practical question for industry participants is whether these initiatives translate into binding rules and legislation. Until that occurs, regulatory uncertainty remains, but the trajectory toward a more structured framework is clearer than it has been in years. Sun, 17 Aug 2025 03:01:16 GMT https://braedenanderson.com/insights/time-to-revisit-the-secs-expanded-dealer-definition https://braedenanderson.com/insights/time-to-revisit-the-secs-expanded-dealer-definition As some of you may remember, last year the SEC adopted Final Rules under Release No. 34-99477 significantly expanding the scope of who must register as a “dealer” or “government securities dealer” under the Exchange Act. Despite the magnitude of this change, many market participants have not revisited the issue since the rules were announced. With FINRA examinations already underway for new registrants, this is the right moment to put the expanded dealer definition back on the radar. Sun, 17 Aug 2025 02:12:37 GMT https://braedenanderson.com/insights/sec-signals-zero-tolerance-for-unregistered-broker-activity https://braedenanderson.com/insights/sec-signals-zero-tolerance-for-unregistered-broker-activity In a string of January 2025 settlements, the Commission reaffirmed that transaction-based compensation remains the defining hallmark of broker-dealer status under Section 15(a) of the Securities Exchange Act of 1934 (“Exchange Act”). Individuals and firms operating as “finders” in private placements, often under the mistaken belief that they fall into a regulatory gray zone, are finding themselves squarely within the SEC’s enforcement crosshairs. Sat, 16 Aug 2025 21:57:42 GMT https://braedenanderson.com/insights/sec-staff-statement-on-liquid-staking-a-step-toward-clarity-in-crypto-regulation https://braedenanderson.com/insights/sec-staff-statement-on-liquid-staking-a-step-toward-clarity-in-crypto-regulation On August 5, 2025, the Securities and Exchange Commission’s Division of Corporation Finance issued a staff statement addressing a rapidly evolving area of crypto finance: liquid staking. The statement—released under the SEC’s Project Crypto initiative—marks a notable step toward clarifying the agency’s application of federal securities laws to certain crypto asset activities. Sat, 16 Aug 2025 19:03:13 GMT https://braedenanderson.com/insights/private-equity-and-crypto-in-401k-plans-what-the-new-executive-order-could-mean-under-erisa https://braedenanderson.com/insights/private-equity-and-crypto-in-401k-plans-what-the-new-executive-order-could-mean-under-erisa An August 2025 Executive Order directs the Department of Labor (DOL), Treasury, and the SEC to “clear the path” for alternative assets—including private equity, private credit/real estate, and cryptocurrency—to be offered in participant-directed defined contribution plans (e.g., 401(k)s). Sat, 16 Aug 2025 17:43:24 GMT https://braedenanderson.com/insights/braeden-anderson-joins-gesmer-updegrove-llp https://braedenanderson.com/insights/braeden-anderson-joins-gesmer-updegrove-llp We are pleased to announce that, effective August 1, 2025, Braeden Anderson, Sr., the founder of Anderson P.C., has joined Gesmer Updegrove LLP as a Partner and will serve as the Inaugural Chair of Gesmer’s Securities Enforcement and Investigations Practice. Sun, 03 Aug 2025 18:44:58 GMT https://braedenanderson.com/insights/backdating-stock-options-a-corporate-scandal-revisited https://braedenanderson.com/insights/backdating-stock-options-a-corporate-scandal-revisited This article offers a comprehensive examination of the stock options backdating scandal—its mechanics, legal implications, regulatory response, and enduring impact—using illustrative case studies from Research In Motion, Broadcom, and other major players. But more importantly, it offers legal insights and guidance for companies, counsel, and compliance professionals who must navigate the complex intersection of compensation practices, financial reporting obligations, and securities law. Thu, 31 Jul 2025 03:02:24 GMT https://braedenanderson.com/insights/a-line-in-the-ledger-federal-banking-agencies-issue-joint-statement-on-crypto-asset-safekeeping https://braedenanderson.com/insights/a-line-in-the-ledger-federal-banking-agencies-issue-joint-statement-on-crypto-asset-safekeeping On July 14, 2025, the OCC, Federal Reserve Board, and FDIC quietly issued a joint statement that may one day be remembered as a foundational moment in the formal convergence of traditional banking oversight and crypto infrastructure. The Statement on Crypto-Asset Safekeeping Risk Management sends a clear signal: if your institution intends to hold digital assets for clients, the expectations are not experimental — they are bank-grade. Tue, 29 Jul 2025 20:28:16 GMT https://braedenanderson.com/insights/make-amateurism-great-again-an-attack-on-us-capitalism-by-a-republican-administration https://braedenanderson.com/insights/make-amateurism-great-again-an-attack-on-us-capitalism-by-a-republican-administration As a former Division I basketball player, a practicing attorney, and an unapologetic believer in American capitalism, I bring a uniquely principled perspective to this issue. I’ve lived both the physical grind and the regulatory complexity of college athletics. I know what it means to stretch a scholarship into opportunity—to rise before dawn for workouts, sit through hours of law school lectures, and navigate a system that extracted elite-level performance while denying me the right to earn from my own name or have an agent. I am a product of that paradox. I’ve lived its costs and now work on the legal frontlines of its reform. On July 24, 2025, President Donald J. Trump issued an Executive Order entitled “ Saving College Sports, ” casting it as a federal response to the disruption wrought by athlete compensation litigation, the proliferation of NIL (name, image, and likeness) deals, and what he calls the growing professionalization of amateur sports. The Order activates a broad coalition of federal agencies—from the DOJ to the Department of Education—to “restore guardrails” in the name of fairness and educational integrity. But behind the carefully crafted rhetoric lies something far more troubling: a reactionary effort to reinstate centralized control, cap market forces, and entrench the institutional advantages of college sports’ old guard. This Executive Order, far from advancing American values, runs directly counter to them. It betrays the entrepreneurial spirit, market freedom, and individual rights that conservative leadership claims to uphold. Sun, 27 Jul 2025 00:28:17 GMT https://braedenanderson.com/insights/evergreen-guide-broker-dealer-due-diligence-obligations-in-regulation-d-offerings https://braedenanderson.com/insights/evergreen-guide-broker-dealer-due-diligence-obligations-in-regulation-d-offerings Private placements under Regulation D of the Securities Act of 1933 remain a critical avenue for capital formation, particularly among early-stage and smaller companies. Despite their exemption from registration, these offerings are not exempt from the antifraud provisions of the federal securities laws. Broker-dealers that recommend Regulation D securities must undertake a reasonable investigation into the offering, the issuer, and the surrounding circumstances. This obligation stems from SEC and FINRA rules and is central to satisfying suitability, antifraud, and supervisory compliance requirements. This guide summarizes the regulatory foundation and outlines best practices for broker-dealers conducting due diligence in Regulation D offerings, with particular reference to FINRA Regulatory Notice 10-22. Wed, 23 Jul 2025 01:29:57 GMT https://braedenanderson.com/insights/finra-proposes-modernization-of-rules-governing-member-firm-workplaces https://braedenanderson.com/insights/finra-proposes-modernization-of-rules-governing-member-firm-workplaces On April 14, 2025, the Financial Industry Regulatory Authority (FINRA) issued Regulatory Notice 25-07, requesting comment on whether and how its rules, guidance, and processes governing the organization and supervision of member firm workplaces should be modernized to reflect significant shifts in industry operations. The comment deadline has been extended to July 14, 2025. Wed, 23 Jul 2025 01:25:12 GMT https://braedenanderson.com/insights/finra-finalizes-rule-6540-under-slate-framework-a-new-era-for-securities-lending-transparency-begins-april-2026 https://braedenanderson.com/insights/finra-finalizes-rule-6540-under-slate-framework-a-new-era-for-securities-lending-transparency-begins-april-2026 On April 2, 2026, FINRA Rule 6540 under the new SLATE (Securities Lending and Transparency Engine) Rule 6500 Series will take effect, ushering in a new era of regulatory transparency in the securities lending market. Mandated by SEC Rule 10c-1a under the Securities Exchange Act of 1934, FINRA’s new framework sets out detailed reporting and public dissemination requirements for securities loans and their modifications. These changes represent a significant expansion in regulatory oversight and transparency and will affect broker-dealers, agent lenders, institutional investors, and other market participants engaged in securities lending. This guide outlines the obligations, timeline, mechanics, legal challenges, and implications of Rule 6540 in a comprehensive manner, providing all the information market participants need to comply and strategize under the new regime. Wed, 23 Jul 2025 00:52:07 GMT https://braedenanderson.com/insights/treasury-secretary-bessent-outlines-strategic-vision-for-financial-regulatory-reform-at-federal-reserve-capital-conference https://braedenanderson.com/insights/treasury-secretary-bessent-outlines-strategic-vision-for-financial-regulatory-reform-at-federal-reserve-capital-conference In prepared remarks delivered at the Federal Reserve Capital Conference, U.S. Treasury Secretary Scott Bessent outlined a sweeping and assertive vision for reorienting the nation's financial regulatory architecture. Framing the speech as a call to action, Bessent emphasized the urgent need to move beyond reactive, fragmented regulation and toward a coordinated, long-term blueprint centered on economic growth, innovation, and national security. Wed, 23 Jul 2025 00:38:04 GMT https://braedenanderson.com/insights/treasury-postpones-effective-date-of-investment-adviser-aml-rule-signals-broader-reassessment-of-regulatory-framework https://braedenanderson.com/insights/treasury-postpones-effective-date-of-investment-adviser-aml-rule-signals-broader-reassessment-of-regulatory-framework The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) announced today its intent to postpone the effective date of its final rule imposing anti-money laundering (“AML”) and countering the financing of terrorism (“CFT”) requirements on investment advisers (the “IA AML Rule”). Wed, 23 Jul 2025 00:26:36 GMT https://braedenanderson.com/insights/finras-25k-rule-is-on-the-chopping-block-what-a-lower-pdt-threshold-could-mean-for-retail-trading https://braedenanderson.com/insights/finras-25k-rule-is-on-the-chopping-block-what-a-lower-pdt-threshold-could-mean-for-retail-trading The Financial Industry Regulatory Authority (FINRA) is reportedly preparing a seismic change to its pattern day trading (PDT) rule—a rule that, since 2001, has required investors to maintain a minimum $25,000 account balance to engage in more than three margin-based day trades in a rolling five-day period. Under a draft proposal is reportedly under internal review, that threshold may soon drop to just $2,000. Tue, 22 Jul 2025 15:08:15 GMT https://braedenanderson.com/insights/sec-whistleblower-awards-slow-amid-record-denials-and-heightened-scrutiny https://braedenanderson.com/insights/sec-whistleblower-awards-slow-amid-record-denials-and-heightened-scrutiny The U.S. Securities and Exchange Commission’s (SEC) once-robust whistleblower program appears to be undergoing a shift. Recent data show a sharp decline in award approvals alongside a dramatic increase in denials, signaling that the Commission is elevating the bar for claimants and taking a more exacting approach to eligibility. Tue, 22 Jul 2025 15:00:08 GMT https://braedenanderson.com/insights/the-wnba-compensation-debate-both-sides-have-a-point-and-thats-exactly-the-issue https://braedenanderson.com/insights/the-wnba-compensation-debate-both-sides-have-a-point-and-thats-exactly-the-issue There’s a knee-jerk reaction many people have when they hear that WNBA players want higher pay. They scoff. They quote profit margins. They cite low attendance numbers from five years ago. They say the league “loses money.” And for many years, that was true. The WNBA wasn’t a profitable enterprise — not by traditional P&L standards. But that’s not the full story. In fact, it’s not even the right metric anymore. Mon, 21 Jul 2025 06:44:34 GMT https://braedenanderson.com/insights/executive-misconduct-in-the-public-eye-a-legal-framework-for-internal-investigations-triggered-by-reputational-crises https://braedenanderson.com/insights/executive-misconduct-in-the-public-eye-a-legal-framework-for-internal-investigations-triggered-by-reputational-crises After a CEO is caught on camera in a viral public incident, what should a company do? This article provides a comprehensive guide on crisis management and explores the legal response, from initiating an internal investigation to navigating reputational risk, policy violations, and executive transitions. Fri, 18 Jul 2025 20:48:52 GMT https://braedenanderson.com/insights/genius-act-passes-the-house-a-defining-moment-for-us-crypto-policy https://braedenanderson.com/insights/genius-act-passes-the-house-a-defining-moment-for-us-crypto-policy Praised by SEC Chairman Paul S. Atkins in an official statement, the GENIUS Act reflects years of bipartisan effort to create a coherent legal framework for crypto asset innovation in the United States. The bill’s passage represents more than regulatory progress—it is a signal that U.S. policy is beginning to shift from enforcement-by-default to regulation-by-design. Fri, 18 Jul 2025 16:01:47 GMT https://braedenanderson.com/insights/sec-investor-advocate-outlines-fy2026-objectives-focus-on-retail-protection-disclosure-efficacy-and-private-market-risks https://braedenanderson.com/insights/sec-investor-advocate-outlines-fy2026-objectives-focus-on-retail-protection-disclosure-efficacy-and-private-market-risks On June 25, 2025, the Securities and Exchange Commission’s Office of the Investor Advocate submitted its annual Report to Congress, outlining the Office’s key policy objectives and areas of focus for Fiscal Year 2026. As retail participation in the markets continues to rise, the Investor Advocate’s priorities reflect a broader regulatory shift toward more data-driven investor protection efforts, disclosure modernization, and a closer examination of opaque market structures—including risks tied to private market exposure in retirement accounts and China-based issuers operating through variable interest entities (VIEs). Fri, 18 Jul 2025 15:51:46 GMT https://braedenanderson.com/insights/sec-extends-compliance-date-for-daily-reserve-computation-requirements-under-rule-15c3-3 https://braedenanderson.com/insights/sec-extends-compliance-date-for-daily-reserve-computation-requirements-under-rule-15c3-3 On June 25, 2025, the Securities and Exchange Commission announced an extension of the compliance deadline for broker-dealers subject to its December 2024 amendments to Rule 15c3-3—the Customer Protection Rule. The amendments require certain broker-dealers to compute reserve requirements daily rather than weekly. The new compliance deadline has been extended from December 31, 2025, to June 30, 2026, providing firms with six additional months to complete the transition. Fri, 18 Jul 2025 15:47:07 GMT https://braedenanderson.com/insights/sec-releases-data-on-broker-dealers-mampa-activity-and-business-development-companies https://braedenanderson.com/insights/sec-releases-data-on-broker-dealers-mampa-activity-and-business-development-companies On June 26, 2025, the SEC’s Division of Economic and Risk Analysis (DERA) published three detailed reports providing updated data and analysis on broker-dealers, mergers and acquisitions (M&A), and business development companies (BDCs). These reports are part of the agency’s ongoing effort to enhance transparency and provide market participants with relevant data to support regulatory and commercial decision-making. Fri, 18 Jul 2025 15:43:24 GMT https://braedenanderson.com/insights/regulation-a-and-the-role-of-finders-a-fresh-look-at-an-old-dilemma https://braedenanderson.com/insights/regulation-a-and-the-role-of-finders-a-fresh-look-at-an-old-dilemma The SEC’s Small Business Capital Formation Advisory Committee will convene on July 22, 2025, to revisit two of the most important—yet perennially underdeveloped—components of the U.S. private capital markets: Regulation A and the regulatory treatment of “finders.” Both topics go to the heart of one of the SEC’s toughest policy challenges: how to responsibly expand capital access for small and emerging businesses without sacrificing investor protection. Fri, 18 Jul 2025 15:36:54 GMT https://braedenanderson.com/insights/if-the-sec-calls-dont-just-call-a-lawyer https://braedenanderson.com/insights/if-the-sec-calls-dont-just-call-a-lawyer When a Fortune 500 company receives an SEC subpoena, they know what to do. When a major bank is contacted by FINRA or the DOJ, they move quickly—and strategically. They don’t just call “a lawyer.” They retain people who live and breathe securities enforcement—attorneys who have either worked inside the SEC or DOJ or trained at elite law firms defending clients in high-stakes regulatory matters. But I see something different play out for smaller companies, startups, founders, and even mid-size financial firms. When they get that same letter or subpoena, they panic. They call the first lawyer they can think of—sometimes a family friend, a generalist litigator, or someone recommended by their insurance panel. And while those lawyers may be talented in other areas, they often have little or no experience with securities enforcement defense. Fri, 18 Jul 2025 15:21:37 GMT https://braedenanderson.com/insights/crypto-in-transition-a-regulatory-crossroads-for-digital-assets-tokenization-and-etps-x34wz-5pfxz https://braedenanderson.com/insights/crypto-in-transition-a-regulatory-crossroads-for-digital-assets-tokenization-and-etps-x34wz-5pfxz On July 1, 2025, the SEC’s Division of Corporation Finance issued a comprehensive staff statement clarifying its views on disclosure obligations under the federal securities laws for issuers of crypto asset exchange-traded products (ETPs). While the products themselves represent novel financial structures—trust-based vehicles holding spot crypto or derivatives—the statement emphasizes continuity in legal obligations: crypto ETP issuers must adhere to well-established disclosure requirements under the Securities Act of 1933 and the Securities Exchange Act of 1934. Wed, 16 Jul 2025 15:58:50 GMT https://braedenanderson.com/insights/crypto-in-transition-a-regulatory-crossroads-for-digital-assets-tokenization-and-etps-x34wz https://braedenanderson.com/insights/crypto-in-transition-a-regulatory-crossroads-for-digital-assets-tokenization-and-etps-x34wz For me and other experts who practice in this space, this was a bit of a "well duh" moment. But given the culminating momentum in the crypto space following the increasingly positive sentiment overall towards the digital assets industry, the Commission was right to make this clear. In a clear-eyed statement issued July 9, 2025, SEC Commissioner Hester M. Peirce addressed the increasing prevalence of tokenized securities, emphasizing that while the underlying technology may be novel, the applicable laws are not. Wed, 16 Jul 2025 15:53:59 GMT https://braedenanderson.com/insights/crypto-in-transition-a-regulatory-crossroads-for-digital-assets-tokenization-and-etps https://braedenanderson.com/insights/crypto-in-transition-a-regulatory-crossroads-for-digital-assets-tokenization-and-etps The digital asset ecosystem is entering a defining period—where legislative clarity, regulatory nuance, and litigation risk are converging. As crypto markets stabilize following years of enforcement-heavy scrutiny, U.S. regulators are offering more detailed guidance. New legislation and thoughtful statements from key regulators point toward a maturing legal environment—one that retains rigor while opening pathways for innovation. At the same time, market participants must navigate a shifting landscape marked by technological complexity, state-level litigation risks, and intensifying disclosure obligations. This update provides a unified view of where the industry is now—from Congress and the SEC to private litigation—and what legal counsel should be preparing for next. Wed, 16 Jul 2025 15:46:08 GMT https://braedenanderson.com/insights/regulatory-update-sec-staff-guidance-eases-broker-dealer-path-into-digital-asset-markets https://braedenanderson.com/insights/regulatory-update-sec-staff-guidance-eases-broker-dealer-path-into-digital-asset-markets On May 15, 2025, the U.S. Securities and Exchange Commission’s Division of Trading and Markets (“Staff”) published a set of Frequently Asked Questions (FAQs) offering long-awaited clarity for SEC-registered broker-dealers and transfer agents engaging in crypto asset-related activities. Issued alongside FINRA and accompanied by the formal withdrawal of the 2019 Joint Staff Statement on Broker-Dealer Custody of Digital Asset Securities, this update is a meaningful step forward. It signals the Staff’s intent to move past defensive postures and toward practical, systems-level integration of crypto asset infrastructure into the legacy securities framework. To be clear: the FAQs don’t alter statutory obligations or override the SEC’s 2020 Special Purpose Broker-Dealer (“SPBD”) Statement. But what they do provide is a viable, operational path for traditional broker-dealers to custody crypto asset securities—without siloed carveouts or regulatory acrobatics. Let’s break down what matters, and why this shift should be on the radar of every compliance officer, digital asset GC, and prime services executive with an eye on the evolving intersection of finance and blockchain. Mon, 14 Jul 2025 04:03:41 GMT https://braedenanderson.com/insights/tokens-forwards-and-the-illusion-of-equity-what-republics-spacex-deal-tells-us-about-modern-securities-innovation https://braedenanderson.com/insights/tokens-forwards-and-the-illusion-of-equity-what-republics-spacex-deal-tells-us-about-modern-securities-innovation Matt Levine’s latest Money Stuff column dissects a fascinating and increasingly common financial arrangement that blurs the line between traditional equity, tokenized instruments, and synthetic exposure: Republic’s tokenized forward tied to SpaceX stock. Fri, 27 Jun 2025 13:53:48 GMT https://braedenanderson.com/insights/sec-reevaluates-controversial-market-surveillance-tool-amid-legal-and-industry-pushback https://braedenanderson.com/insights/sec-reevaluates-controversial-market-surveillance-tool-amid-legal-and-industry-pushback In a move that signals regulatory recalibration, the Securities and Exchange Commission (SEC) has paused litigation surrounding its Consolidated Audit Trail (CAT) — a long-debated, market-wide surveillance system that has drawn growing criticism from investors, industry participants, and conservative watchdogs. The SEC’s pause suggests that the agency may be open to modifying or even scaling back one of the most ambitious trade monitoring initiatives in modern market history. Fri, 27 Jun 2025 13:48:35 GMT https://braedenanderson.com/insights/judge-rejects-sec-and-ripples-joint-bid-to-reduce-fine-and-vacate-injunction https://braedenanderson.com/insights/judge-rejects-sec-and-ripples-joint-bid-to-reduce-fine-and-vacate-injunction In a striking rebuke to both a federal agency and a prominent digital asset firm, U.S. District Judge Analisa Torres has rejected a joint motion by the Securities and Exchange Commission (SEC) and Ripple Labs to finalize a reduced civil penalty and vacate a previously imposed injunction in their high-profile enforcement battle. The ruling underscores the limits of private settlement power in the face of final judicial determinations and reinforces the judiciary’s role in upholding statutory mandates — especially in cases involving violations of the federal securities laws. Fri, 27 Jun 2025 13:39:41 GMT https://braedenanderson.com/insights/ripple-and-sec-seek-to-resolve-civil-penalty-dispute-with-75m-release-to-ripple https://braedenanderson.com/insights/ripple-and-sec-seek-to-resolve-civil-penalty-dispute-with-75m-release-to-ripple In a notable shift toward final resolution, Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have jointly filed a motion in the U.S. District Court for the Southern District of New York seeking to modify the judgment in their long-standing enforcement matter and release funds held in escrow. Under the proposed stipulation, $125 million in civil penalties previously imposed on Ripple would be partially redistributed—$50 million paid to the SEC, with the remaining $75 million returned to Ripple. Fri, 13 Jun 2025 15:11:14 GMT https://braedenanderson.com/insights/doj-charges-amalgam-founder-with-crypto-fraud-a-case-study-in-deception https://braedenanderson.com/insights/doj-charges-amalgam-founder-with-crypto-fraud-a-case-study-in-deception The Justice Department has unsealed criminal charges against Jeremy Jordan-Jones, alleged founder of the now-defunct crypto venture Amalgam , accusing him of orchestrating a $1 million investor fraud built on fabricated partnerships, fictitious technology, and the trappings of blockchain legitimacy. The indictment is the latest in a growing string of federal enforcement actions targeting fraudulent schemes masquerading as legitimate digital asset businesses. The message from prosecutors is clear: the novelty of blockchain will not shield bad actors from traditional fraud charges. Thu, 22 May 2025 13:42:37 GMT https://braedenanderson.com/insights/the-genius-act-a-long-overdue-framework-for-blockchain-era-banking https://braedenanderson.com/insights/the-genius-act-a-long-overdue-framework-for-blockchain-era-banking The recent Senate vote to advance the GENIUS Act—a bipartisan bill to regulate stablecoins—is more than just another milestone in crypto policy. It represents a long-overdue recognition that fiat-backed digital dollars are not speculative assets; they are infrastructure. At Anderson P.C., we strongly support the GENIUS Act and believe it lays the foundation for a safer, more credible, and ultimately more competitive U.S. digital economy. Thu, 22 May 2025 13:31:25 GMT https://braedenanderson.com/insights/sportslaw https://braedenanderson.com/insights/sportslaw Anderson P.C. enters this space with a unique combination of sector fluency and legal precision. We advise clients ranging from elite athletes and sports executives to institutional investors, leagues, and media partners. Our approach is rooted in a firm-wide commitment to clarity, discretion, and strategic foresight. Fri, 16 May 2025 16:49:18 GMT https://braedenanderson.com/insights/announcing-the-launch-of-anderson-pcs-sports-amp-entertainment-practice https://braedenanderson.com/insights/announcing-the-launch-of-anderson-pcs-sports-amp-entertainment-practice Anderson P.C. is pleased to announce the launch of its Sports & Entertainment Practice, marking a strategic expansion aligned with the rapidly evolving legal landscape across the global sports industry. Our practice draws upon extensive regulatory, litigation, and advisory experience, and is informed by a deep understanding of the industry from both legal and operational perspectives. Fri, 16 May 2025 16:45:40 GMT https://braedenanderson.com/insights/bridging-the-gap-between-product-vision-and-investor-risk-why-ecvc-structure-still-breaks-deals https://braedenanderson.com/insights/bridging-the-gap-between-product-vision-and-investor-risk-why-ecvc-structure-still-breaks-deals Bridging the Gap Between Product Vision and Investor Risk In ECVC, the deals that stall aren’t always the ones with weak market fit. More often, they’re the ones where structure didn’t keep up with vision. Have you seen this before? Founders racing to ship product. Investors focused on risk and re Wed, 14 May 2025 22:23:34 GMT https://braedenanderson.com/insights/token-or-equity-or-both-cap-table-strategy-in-web3 https://braedenanderson.com/insights/token-or-equity-or-both-cap-table-strategy-in-web3 Founders face a unique challenge: managing both tokens and equity on the cap table. Tokens aren’t equity, but investors often treat them like they are—raising questions about rights, control, and upside. Without clear structure, that confusion can derail deals and trigger avoidable risks. Wed, 14 May 2025 15:48:47 GMT https://braedenanderson.com/insights/sec-chair-paul-atkins-announces-sweeping-cuts-and-contract-reviews-what-this-means-for-market-regulation-and-enforcement https://braedenanderson.com/insights/sec-chair-paul-atkins-announces-sweeping-cuts-and-contract-reviews-what-this-means-for-market-regulation-and-enforcement In his first major address to the agency, newly appointed SEC Chair Paul Atkins informed staff this week that the U.S. Securities and Exchange Commission has experienced a 15% reduction in workforce, with more changes to come. The remarks, delivered during a town hall at SEC headquarters in Washington, D.C., mark a sharp pivot in tone and direction for the Commission under the Trump administration’s broader government downsizing initiative, led in part by billionaire adviser Elon Musk’s Department of Government Efficiency (DOGE). Thu, 08 May 2025 14:25:54 GMT https://braedenanderson.com/insights/super-micro-subpoenaed-by-doj-and-sec-following-short-seller-allegations-what-this-means-for-ai-market-investors-and-compliance-officers https://braedenanderson.com/insights/super-micro-subpoenaed-by-doj-and-sec-following-short-seller-allegations-what-this-means-for-ai-market-investors-and-compliance-officers San Jose-based Super Micro Computer, a prominent supplier of high-performance AI server hardware, disclosed this week that it has received subpoenas from both the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC). The subpoenas, served in late 2024, are part of an apparent response to allegations first raised by the now-defunct short seller Hindenburg Research in August of last year. Thu, 08 May 2025 14:14:03 GMT https://braedenanderson.com/insights/foia-docs-show-ny-ag-wanted-eth-declared-a-security https://braedenanderson.com/insights/foia-docs-show-ny-ag-wanted-eth-declared-a-security In a striking revelation from documents obtained through Coinbase’s Freedom of Information Act (FOIA) efforts, the New York Attorney General’s Office asked the Securities and Exchange Commission (SEC) in 2023 to declare Ether (ETH) a security in support of its lawsuit against crypto exchange KuCoin. The request, made during the tenure of former SEC Chair Gary Gensler, was ultimately declined. Thu, 08 May 2025 12:55:37 GMT https://braedenanderson.com/insights/sec-unmasks-91m-ponzi-scheme-in-texas-three-dfw-residents-charged-in-sweeping-fraud-case https://braedenanderson.com/insights/sec-unmasks-91m-ponzi-scheme-in-texas-three-dfw-residents-charged-in-sweeping-fraud-case The Securities and Exchange Commission (SEC) has filed sweeping civil charges against three Dallas-Fort Worth (DFW) residents for orchestrating an alleged $91 million Ponzi scheme that defrauded over 200 investors. The defendants—Kenneth Alexander II, Robert D. Welsh, and Caedrynn E. Conner—now face allegations of violating the antifraud and registration provisions of federal securities laws through a complex network of deceptive investment vehicles. Thu, 08 May 2025 12:49:34 GMT https://braedenanderson.com/insights/civitas-resources-faces-securities-class-action-after-18-stock-drop-what-investors-and-public-companies-should-know https://braedenanderson.com/insights/civitas-resources-faces-securities-class-action-after-18-stock-drop-what-investors-and-public-companies-should-know Civitas Resources, Inc. (NYSE: CIVI), a prominent player in the U.S. oil and gas sector, now finds itself at the center of a securities class action lawsuit following a sharp 18% decline in its stock price. The complaint, filed in the U.S. District Court for the District of New Jersey (captioned Lin v. Civitas Resources, Inc., et al. , No. 25-cv-03791), alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, spotlighting misstatements concerning production capabilities and capital expenditures. Thu, 08 May 2025 12:45:26 GMT https://braedenanderson.com/insights/safemoon-trial-opens-former-ceo-claims-innocence-points-to-founder-as-culprit https://braedenanderson.com/insights/safemoon-trial-opens-former-ceo-claims-innocence-points-to-founder-as-culprit The trial of SafeMoon ’s former CEO, Braden John Karony, commenced this week in the U.S. District Court for the Eastern District of New York (EDNY), adding another complex layer to the growing landscape of crypto enforcement actions. Facing charges of securities fraud conspiracy, wire fraud conspiracy, and money laundering conspiracy, Karony has publicly asserted his innocence—and in a rare move, attempted to deflect culpability toward SafeMoon’s founder, Kyle Nagy. Thu, 08 May 2025 12:40:30 GMT https://braedenanderson.com/insights/crypto-legislation-collides-with-trumps-digital-asset-ties-as-house-hearing-implodes https://braedenanderson.com/insights/crypto-legislation-collides-with-trumps-digital-asset-ties-as-house-hearing-implodes Efforts to establish a comprehensive digital asset regulatory framework were sidelined on Tuesday, not by policy disagreement, but by political uproar. What was expected to be a pivotal joint hearing between the House Financial Services and Agriculture Committees was instead derailed by a high-profile objection from Democratic leadership, intensifying an already volatile environment around crypto legislation. Wed, 07 May 2025 15:22:00 GMT https://braedenanderson.com/insights/how-to-get-formation-right-why-entity-structure-is-the-first-strategic-decision-youll-make https://braedenanderson.com/insights/how-to-get-formation-right-why-entity-structure-is-the-first-strategic-decision-youll-make Formation is often treated like a checkbox, but it’s actually one of the first real strategic choices a founder makes. The right structure helps you raise money, avoid painful surprises, and stay flexible as you grow. This article breaks down what clean formation looks like, when complex structures make sense, and how thoughtful decisions now can save time, money, and stress later. Tue, 06 May 2025 12:37:38 GMT https://braedenanderson.com/insights/law-loyalty-why-lawyers-are-right-to-push-back-on-the-2025-law-day-proclamation-9tk1n https://braedenanderson.com/insights/law-loyalty-why-lawyers-are-right-to-push-back-on-the-2025-law-day-proclamation-9tk1n I. Context: The Convergence of Two Holidays, and a Crisis of Framing On May 1, 2025, President Donald J. Trump issued a proclamation that declared the day both Law Day and Loyalty Day. On its face, this was not unprecedented—both observances have existed side by side for decades. But in tone and in Sat, 03 May 2025 15:16:42 GMT https://braedenanderson.com/insights/do-i-need-a-lawyer-yet-why-early-legal-strategy-is-a-startups-secret-weapon https://braedenanderson.com/insights/do-i-need-a-lawyer-yet-why-early-legal-strategy-is-a-startups-secret-weapon Early legal strategy is a startup’s secret weapon. In today’s funding climate, investors are scrutinizing structure—not just story. A clean legal foundation signals you're serious, protects value, and can make or break a deal. You don’t need to over-lawyer—but you do need a smart plan. Tue, 29 Apr 2025 19:07:21 GMT https://braedenanderson.com/insights/generative-ai-and-the-legal-profession https://braedenanderson.com/insights/generative-ai-and-the-legal-profession Generative AI is rapidly becoming a fixture in legal practice, transforming workflows, expectations, and client demands. According to Thomson Reuters’ 2025 Generative AI in Professional Services Report, usage of generative AI among law firms and in-house legal departments has nearly doubled over the past year, with 26% now using the technology and 59% supporting its use in legal work. While the pace of adoption is striking, it has outpaced the development of formal policies, training, and clear legal frameworks for responsible implementation. Fri, 18 Apr 2025 23:25:49 GMT https://braedenanderson.com/insights/post-liberation-day-secondary-tariffs https://braedenanderson.com/insights/post-liberation-day-secondary-tariffs On April 2, 2025, the Trump administration declared a new “Liberation Day”—a sweeping trade policy shift marked by aggressive new tariffs that reverberate far beyond traditional bilateral trade disputes. Under Executive Order 14245, the United States now claims the authority to impose a 25% tariff on all goods from any country that imports Venezuelan oil, whether directly or through intermediaries. This is not merely a sanctions expansion. It is a geopolitical reshaping of trade policy through discretionary economic punishment for third-party relationships—a dramatic shift from prior norms of trade enforcement. Fri, 18 Apr 2025 19:11:00 GMT https://braedenanderson.com/insights/the-secs-crypto-custody-roundtable-a-tipping-point-for-regulatory-clarity-or-more-questions https://braedenanderson.com/insights/the-secs-crypto-custody-roundtable-a-tipping-point-for-regulatory-clarity-or-more-questions The Securities and Exchange Commission has released the full agenda and panel lineup for its April 25 roundtable, “Know Your Custodian: Key Considerations for Crypto Custody.” The speaker list is impressive—though, perhaps, it might have been even stronger had they invited me (a guy can dream, right?). Scheduled to take place at SEC headquarters in Washington, D.C., the event will bring together regulators, law firm partners, academics, and crypto-native custodians for what may prove to be the most consequential public dialogue on digital asset custody to date. Fri, 18 Apr 2025 13:46:04 GMT https://braedenanderson.com/insights/bitcoin-as-a-strategic-reserve-policy-legal-and-compliance-implications https://braedenanderson.com/insights/bitcoin-as-a-strategic-reserve-policy-legal-and-compliance-implications As governments around the world begin to explore bitcoin as a sovereign reserve asset, the legal and operational challenges of holding decentralized digital assets at scale are coming into focus. With the U.S. now consolidating over 200,000 BTC under a newly created Strategic Bitcoin Reserve, federal agencies must confront unprecedented questions around custody, classification, transparency, and compliance. This article examines how sovereign crypto ownership reshapes the legal landscape—where sovereign immunity meets private key management, and where agencies once tasked solely with regulation must now coordinate as market participants. The implications for global reserve policy, national security, and financial law are only beginning to unfold. Thu, 17 Apr 2025 20:06:44 GMT https://braedenanderson.com/insights/securities-docket-weekly-update-april-11 https://braedenanderson.com/insights/securities-docket-weekly-update-april-11 Here are the top stories in securities enforcement and regulation for the week ending April 11, 2025. From viral market misinformation to a new SEC Chair, let’s get into it. Don’t forget to like, comment, and subscribe for weekly updates! 👊🏽🇺🇸 Thu, 17 Apr 2025 19:11:17 GMT https://braedenanderson.com/insights/securities-docket-weekly-update-march-29 https://braedenanderson.com/insights/securities-docket-weekly-update-march-29 Securities Docket Weekly Update - March 29, 2025. Join me as I break down the top securities enforcement and regulatory developments shaping the industry this week! Don’t forget to like, comment, and subscribe for weekly updates! Thu, 17 Apr 2025 16:22:19 GMT https://braedenanderson.com/insights/securities-docket-weekly-update-march-21 https://braedenanderson.com/insights/securities-docket-weekly-update-march-21 Securities Docket Weekly Update - March 21, 2025. Join me as I break down the top securities enforcement and regulatory developments shaping the industry this week! Don’t forget to like, comment, and subscribe for weekly updates! Thu, 17 Apr 2025 16:20:26 GMT https://braedenanderson.com/insights/securities-docket-weekly-update-march-14 https://braedenanderson.com/insights/securities-docket-weekly-update-march-14 Securities Docket Weekly Update - March 14, 2025. Join me as I break down the top securities enforcement and regulatory developments shaping the industry this week! Don’t forget to like, comment, and subscribe for weekly updates! Thu, 17 Apr 2025 16:17:36 GMT https://braedenanderson.com/insights/securities-docket-weekly-update-march-7 https://braedenanderson.com/insights/securities-docket-weekly-update-march-7 Securities Docket Weekly Update - March 7, 2025. Join me as I break down the top securities enforcement and regulatory developments shaping the industry this week! Don’t forget to like, comment, and subscribe for weekly updates! Thu, 17 Apr 2025 16:16:11 GMT https://braedenanderson.com/insights/securities-docket-weekly-update-feb-28 https://braedenanderson.com/insights/securities-docket-weekly-update-feb-28 Securities Docket Weekly Update - Feb 28, 2025. Join me as I break down the top securities enforcement and regulatory developments shaping the industry this week! Don’t forget to like, comment, and subscribe for weekly updates! Thu, 17 Apr 2025 16:14:01 GMT https://braedenanderson.com/insights/securities-docket-weekly-update-feb-21 https://braedenanderson.com/insights/securities-docket-weekly-update-feb-21 Securities Docket Weekly Update - Feb 21, 2025. Join me as I break down the top securities enforcement and regulatory developments shaping the industry this week! Don’t forget to like, comment, and subscribe for weekly updates! 👊🏽🇺🇸 Thu, 17 Apr 2025 16:11:24 GMT https://braedenanderson.com/insights/securities-docket-weekly-update-feb-14 https://braedenanderson.com/insights/securities-docket-weekly-update-feb-14 Securities Docket Weekly Update Feb 14, 2025 - Join me as I break down the top securities enforcement and regulatory developments shaping the industry this week! Don’t forget to like, comment, and subscribe for weekly updates! Thu, 17 Apr 2025 16:03:59 GMT https://braedenanderson.com/insights/harvard-vs-trump-federal-funding-free-speech-and-the-fight-for-academic-autonomy https://braedenanderson.com/insights/harvard-vs-trump-federal-funding-free-speech-and-the-fight-for-academic-autonomy A high-stakes legal and political confrontation is unfolding between Harvard University and the Trump administration. At its core lies a dispute over federal research funding, the right of private universities to operate independently, and the administration’s efforts to combat antisemitism on campuses. The conflict raises profound questions about constitutional law, academic freedom, and the extent of executive power over institutions of higher learning. Thu, 17 Apr 2025 15:47:29 GMT https://braedenanderson.com/insights/secs-april-2025-crypto-disclosure-guidance-clear-structure-unclear-application https://braedenanderson.com/insights/secs-april-2025-crypto-disclosure-guidance-clear-structure-unclear-application On April 10, 2025, the U.S. Securities and Exchange Commission’s Division of Corporation Finance (CorpFin) released a detailed statement outlining disclosure expectations for offerings and registrations of securities in the crypto asset markets. While the framework is thorough, well-organized, and undeniably helpful to lawyers and compliance professionals, it suffers from a familiar and recurring issue in the Commission’s approach to crypto: it does not say who the rules apply to. Wed, 16 Apr 2025 20:15:23 GMT https://braedenanderson.com/insights/paul-atkins-confirmed-as-sec-chair-amid-rising-pressure-to-act-on-chinese-companies https://braedenanderson.com/insights/paul-atkins-confirmed-as-sec-chair-amid-rising-pressure-to-act-on-chinese-companies On April 10, 2025, the U.S. Senate confirmed Paul Atkins as the next Chair of the Securities and Exchange Commission in a narrow 52-44 vote. During his confirmation process, Atkins faced tough questions about the agency’s recent reversals in crypto enforcement and the influence of the Trump administration on its priorities. But the most pointed pressure came from lawmakers demanding stronger action against Chinese companies listed on U.S. exchanges. Wed, 16 Apr 2025 20:00:34 GMT https://braedenanderson.com/insights/courts-not-regulators-may-shape-crypto-law-but-thats-not-necessarily-a-bad-thing https://braedenanderson.com/insights/courts-not-regulators-may-shape-crypto-law-but-thats-not-necessarily-a-bad-thing As the SEC retreats from its aggressive crypto enforcement posture under former Chair Gary Gensler, observers have speculated that courts will now become the primary venue for resolving disputes over how federal securities laws apply to digital assets. But despite the headlines suggesting a flood of new litigation, we at Anderson P.C. are not convinced that such a surge is inevitable—or even problematic. Wed, 16 Apr 2025 19:56:34 GMT https://braedenanderson.com/insights/par-for-the-course-senator-warren-urges-review-of-trump-secs-crypto-retreat https://braedenanderson.com/insights/par-for-the-course-senator-warren-urges-review-of-trump-secs-crypto-retreat To many familiar with Senator Warren’s long-standing focus on financial regulation and institutional accountability, this move is unsurprising. She has consistently taken a hardline stance against what she views as industry capture and lax enforcement. Whether this particular request leads to meaningful action from the OIG remains to be seen. Such inquiries can take months or years, and the bar for proving undue influence is high. Wed, 16 Apr 2025 19:47:11 GMT https://braedenanderson.com/insights/doj-bans-lawyers-from-aba-events https://braedenanderson.com/insights/doj-bans-lawyers-from-aba-events In a move that has stirred unease across the legal community, the U.S. Department of Justice (DOJ) announced last week that its attorneys are prohibited from attending or participating in events organized by the American Bar Association (ABA). The decision, laid out in a memo from Deputy Attorney General Todd Blanche, cited concerns that the ABA has engaged in “activist causes,” including litigation aimed at blocking Trump administration policies on foreign aid. Wed, 16 Apr 2025 19:38:49 GMT https://braedenanderson.com/insights/markets-react-to-fake-news-on-tariffs-a-cautionary-tale-for-traders https://braedenanderson.com/insights/markets-react-to-fake-news-on-tariffs-a-cautionary-tale-for-traders On April 8, 2025, U.S. financial markets experienced a whiplash moment after an unverified social media report falsely claimed the Trump administration was preparing a 90-day suspension of tariffs. The news—initially published by pseudonymous Twitter personality “Walter Bloomberg” and subsequently picked up by credible outlets including CNBC and Reuters—set off an immediate and massive rally in equity markets. The rally added trillions of dollars in paper value in a matter of minutes. Wed, 16 Apr 2025 19:18:39 GMT https://braedenanderson.com/insights/conducting-a-tokenized-offering-under-regulation-a-anderson-pc https://braedenanderson.com/insights/conducting-a-tokenized-offering-under-regulation-a-anderson-pc While there are multiple frameworks available to launch and distribute tokens—including those designed to avoid classification as securities—many of our clients elect to offer tokens as securities for strategic reasons. This can include unlocking broader investor participation, enabling secondary market liquidity, or building long-term institutional trust. Regulation A and Regulation Crowdfunding (Reg CF) are the two primary exemptions that allow for the public issuance of security tokens under U.S. law. Thu, 10 Apr 2025 15:19:45 GMT https://braedenanderson.com/insights/cfpbs-overreach-applying-regulation-e-to-unhosted-wallets-is-legally-and-technologically-unsound https://braedenanderson.com/insights/cfpbs-overreach-applying-regulation-e-to-unhosted-wallets-is-legally-and-technologically-unsound The Consumer Financial Protection Bureau (CFPB) recently issued a proposed interpretive rule that aims to expand the scope of Electronic Fund Transfer Act (EFTA) and Regulation E to include unhosted blockchain wallets such as MetaMask. Fri, 21 Mar 2025 15:39:09 GMT https://braedenanderson.com/insights/sec-enforcement-lawyers-face-fallout-as-crypto-industry-pushes-back https://braedenanderson.com/insights/sec-enforcement-lawyers-face-fallout-as-crypto-industry-pushes-back The ongoing battle between the SEC and the cryptocurrency industry has taken a new turn—not just in regulatory policy, but in the professional reputations of SEC enforcement attorneys. With the agency facing court setbacks and political shifts, some former SEC lawyers are struggling to find opportunities in private practice, particularly at firms engaged in crypto-related work. This dynamic raises fair questions on both sides—is this an unfair punishment for regulators who were doing their jobs, or is it a natural consequence of overzealous enforcement that left a lasting impact on the industry? Thu, 20 Mar 2025 11:30:00 GMT https://braedenanderson.com/insights/big-law-and-the-trump-administration https://braedenanderson.com/insights/big-law-and-the-trump-administration The Trump administration’s latest actions targeting Paul Weiss and other major law firms have sparked debate over the future of Big Law. While these developments are significant, it’s important to take a measured view—this is disruptive but not existential for the industry. Thu, 20 Mar 2025 02:43:18 GMT https://braedenanderson.com/insights/acting-sec-chair-reshapes-the-agency-ahead-of-trumps-pick https://braedenanderson.com/insights/acting-sec-chair-reshapes-the-agency-ahead-of-trumps-pick The Securities and Exchange Commission (SEC) is undergoing a profound transformation as its acting leadership reshapes the agency ahead of the confirmation of President Trump’s nominee, Paul Atkins. These sweeping changes include staffing reductions, leadership shake-ups, and a recalibration of enforcement priorities, raising questions about the future of securities regulation in the United States. Thu, 20 Mar 2025 02:34:09 GMT https://braedenanderson.com/insights/sec-accuses-cannabis-cfo-of-42m-round-trip-accounting-scheme-industry-lessons https://braedenanderson.com/insights/sec-accuses-cannabis-cfo-of-42m-round-trip-accounting-scheme-industry-lessons The U.S. Securities and Exchange Commission (SEC) has filed charges against the former CFO of Acreage Holdings, Glen Leibowitz, alleging his involvement in a $4.2 million round-trip transaction designed to manipulate the company’s year-end cash balance. This case underscores the increasing regulatory scrutiny cannabis companies face, particularly as they grapple with complex financial reporting obligations, banking restrictions, and compliance challenges. Thu, 20 Mar 2025 02:26:20 GMT https://braedenanderson.com/insights/sec-backs-down-on-ripple https://braedenanderson.com/insights/sec-backs-down-on-ripple In a major development for the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) has ended its appeal against Ripple Labs regarding the legal status of the XRP token. This decision marks a significant shift in regulatory posture, reflecting broader changes in crypto oversight under the new administration. Thu, 20 Mar 2025 02:19:23 GMT https://braedenanderson.com/insights/cftc-pulls-back-on-sef-registration-advisory-a-win-for-market-clarity https://braedenanderson.com/insights/cftc-pulls-back-on-sef-registration-advisory-a-win-for-market-clarity The Commodity Futures Trading Commission (CFTC) just hit the reset button. On March 13, 2025, the Division of Market Oversight (DMO) issued CFTC Letter No. 25-05, officially scrapping the controversial 2021 Advisory on Swap Execution Facility (SEF) Registration (CFTC Letter No. 21-19). Effective immediately, this move restores the pre-2021 regulatory framework, providing much-needed clarity for commodity trading advisors (CTAs), introducing brokers (IBs), and other market players facilitating swap execution. Thu, 20 Mar 2025 02:08:01 GMT https://braedenanderson.com/insights/finras-probe-raises-constitutional-questions-amid-growing-scrutiny-of-regulatory-power https://braedenanderson.com/insights/finras-probe-raises-constitutional-questions-amid-growing-scrutiny-of-regulatory-power A new lawsuit against the Financial Industry Regulatory Authority (FINRA) highlights growing tensions between regulatory enforcement and constitutional protections. On February 15, Francis G. Smith of FGS Financial Inc. filed a complaint in the U.S. District Court for the District of Columbia, alleging that FINRA violated his due process rights. The lawsuit claims that during a probe into his continuing education compliance, FINRA demanded sworn testimony and warned Smith he could face expulsion from the securities industry if he asserted his Fifth Amendment right against self-incrimination. Tue, 18 Feb 2025 15:39:00 GMT https://braedenanderson.com/insights/sec-crypto-enforcement-pauses-in-select-matters-but-uncertainty-remains-for-many https://braedenanderson.com/insights/sec-crypto-enforcement-pauses-in-select-matters-but-uncertainty-remains-for-many While major platforms like Coinbase and Binance breathe easier, countless other crypto market participants remain in the crosshairs of unresolved investigations. These businesses, builders, and innovators face the same murky regulatory waters, the same costly battles, and the same chilling uncertainty that the SEC now seems to acknowledge is problematic. So, why are they still left out in the cold? Tue, 18 Feb 2025 15:25:36 GMT https://braedenanderson.com/insights/key-insights-from-finras-2025-annual-regulatory-oversight-report https://braedenanderson.com/insights/key-insights-from-finras-2025-annual-regulatory-oversight-report FINRA’s 2025 Annual Regulatory Oversight Report serves as a comprehensive guide to regulatory expectations for broker-dealers. As the financial industry continues to evolve, firms must remain proactive in enhancing their supervisory frameworks, trade surveillance mechanisms, and cybersecurity defenses . The focus on AI, extended-hours trading, RILAs, and third-party risk management signals key areas for heightened scrutiny in the year ahead. Tue, 11 Feb 2025 22:58:38 GMT https://braedenanderson.com/insights/bondi-pivots-justice-departments-stance-on-white-collar-under-trump https://braedenanderson.com/insights/bondi-pivots-justice-departments-stance-on-white-collar-under-trump The Justice Department is scaling back its enforcement of laws governing foreign lobbying transparency and foreign bribery, according to a memorandum issued by Attorney General Pam Bondi. The shift signals a narrowing of the Foreign Corrupt Practices Act (FCPA) enforcement scope, moving away from traditional corporate bribery cases and toward investigations tied to transnational criminal organizations. Fri, 07 Feb 2025 07:04:44 GMT https://braedenanderson.com/insights/sec-reshuffles-key-crypto-enforcers-signaling-policy-shift https://braedenanderson.com/insights/sec-reshuffles-key-crypto-enforcers-signaling-policy-shift In a striking move, the Securities and Exchange Commission (SEC) has reassigned one of its top litigators, Jorge Tenreiro, who played a central role in the agency’s aggressive enforcement actions against crypto firms. The transfer, which places him in an administrative office overseeing the SEC’s co Thu, 06 Feb 2025 15:27:56 GMT https://braedenanderson.com/insights/sen-lummis-urges-second-circuit-to-curb-secs-crypto-overreach https://braedenanderson.com/insights/sen-lummis-urges-second-circuit-to-curb-secs-crypto-overreach Senator Cynthia Lummis, R-Wyo., has thrown her support behind Coinbase Inc. in its legal battle against the U.S. Securities and Exchange Commission (SEC), urging the Second Circuit to clarify the limits of the SEC’s authority in regulating digital assets. In an amicus brief filed Friday, Lummis argued that the SEC’s enforcement actions against crypto intermediaries, including Coinbase, undermine congressional efforts to establish a clear regulatory framework for the digital asset industry. Fri, 31 Jan 2025 10:00:00 GMT https://braedenanderson.com/insights/palo-alto-networks-insider-trading-case-ninth-circuit-orders-resentencing https://braedenanderson.com/insights/palo-alto-networks-insider-trading-case-ninth-circuit-orders-resentencing The Ninth Circuit has upheld securities fraud convictions against Sivannarayana Barama, a former Palo Alto Networks engineer who profited $7 million through insider trading. However, the court remanded the case for resentencing, ruling that the district court improperly used Barama’s trading gains as a proxy for the company’s loss without determining an actual loss. Thu, 30 Jan 2025 11:30:00 GMT https://braedenanderson.com/insights/kucoins-297m-settlement-marks-a-turning-point-in-crypto-compliance https://braedenanderson.com/insights/kucoins-297m-settlement-marks-a-turning-point-in-crypto-compliance Crypto exchange KuCoin has agreed to pay $297 million and pled guilty to operating an unlicensed money transmitting business, following allegations of widespread anti-money laundering (AML) failures and the facilitation of over $5 billion in illicit transactions. This significant development underscores the growing scrutiny of cryptocurrency platforms by U.S. regulators and law enforcement. Wed, 29 Jan 2025 12:00:00 GMT https://braedenanderson.com/insights/biz-adviser-relative-defeat-secs-investment-fraud-claims https://braedenanderson.com/insights/biz-adviser-relative-defeat-secs-investment-fraud-claims In a notable ruling, a Boston federal judge rejected the U.S. Securities and Exchange Commission’s (SEC) allegations that Roger Bendelac, a business adviser, and his brother-in-law, Thomas Capellini, participated in a $2.3 million penny stock fraud scheme. The decision followed a four-day bench trial in October and highlights the complexities of securities enforcement cases, where the evidence often lies in the fine details. Tue, 28 Jan 2025 16:13:30 GMT https://braedenanderson.com/insights/4-things-the-menendez-trial-judge-will-weigh-at-sentencing https://braedenanderson.com/insights/4-things-the-menendez-trial-judge-will-weigh-at-sentencing When U.S. District Judge Sidney Stein sentences former U.S. Senator Robert Menendez this week on federal bribery and corruption charges, he will weigh a complex mixture of factors, balancing a lifetime of public service against the gravity of the crimes. Menendez, who once donned a bulletproof vest to fight corruption in New Jersey, now faces sentencing for accepting bribes in the form of gold bars, cash, and luxury goods in exchange for political favors. Tue, 28 Jan 2025 16:01:45 GMT https://braedenanderson.com/insights/sec-withdraws-staff-accounting-bulletin-no-121 https://braedenanderson.com/insights/sec-withdraws-staff-accounting-bulletin-no-121 On January 23, 2025, the SEC issued Staff Accounting Bulletin (SAB) 122 , formally withdrawing the controversial SAB 121. The previous guidance, introduced under the leadership of former SEC Chair Gary Gensler, required public companies, including banks, to record customers’ cryptocurrency holdings on their own balance sheets. This requirement was intended to provide added investor protections during bankruptcies but faced criticism for its potentially burdensome implications for institutions handling digital assets. Fri, 24 Jan 2025 14:15:37 GMT https://braedenanderson.com/insights/president-trump-crypto-billionaire-much-ado-about-nothing https://braedenanderson.com/insights/president-trump-crypto-billionaire-much-ado-about-nothing The launch of President Donald Trump’s $TRUMP cryptocurrency token has sparked controversy, with critics framing it as a regulatory and ethical quagmire. However, when analyzed through established legal frameworks, these attacks seem more like political theater than substantive concerns. While $TRUMP has undoubtedly captured headlines and stirred debate, the reality is that this token likely does not meet the legal definition of a security. Without significant changes to how it is marketed or managed, critics’ arguments appear to lack the necessary substance to stick. Thu, 23 Jan 2025 15:35:17 GMT https://braedenanderson.com/insights/sec-announces-formation-of-crypto-task-force-20 https://braedenanderson.com/insights/sec-announces-formation-of-crypto-task-force-20 Acting Chairman Mark T. Uyeda of the U.S. Securities and Exchange Commission (SEC) announced the launch of a dedicated Crypto Task Force aimed at establishing a clear and comprehensive regulatory framework for crypto assets. Commissioner Hester Peirce will chair the task force, supported by Richard Gabbert as Chief of Staff and Taylor Asher as Chief Policy Advisor. Wed, 22 Jan 2025 20:31:22 GMT https://braedenanderson.com/insights/trumps-sec-leadership-a-new-chapter-for-cryptocurrency-regulation https://braedenanderson.com/insights/trumps-sec-leadership-a-new-chapter-for-cryptocurrency-regulation As the nation prepares for a change in leadership, the cryptocurrency industry is abuzz with speculation about the potential regulatory shift under the incoming Trump administration. With Hester Peirce and Mark Uyeda poised to take on pivotal roles at the U.S. Securities and Exchange Commission (SEC), it appears a crypto-friendly overhaul may be on the horizon. Sources close to the matter suggest that these changes could begin as early as next week. Sun, 19 Jan 2025 15:57:09 GMT https://braedenanderson.com/insights/where-tiktok-goes-next-navigating-the-uncertainty-of-a-landmark-ban https://braedenanderson.com/insights/where-tiktok-goes-next-navigating-the-uncertainty-of-a-landmark-ban The Supreme Court has issued a landmark ruling with profound implications for technology, geopolitics, and the digital economy. By unanimously upholding the "Protecting Americans from Foreign Adversary Controlled Applications Act" (PAFACAA), the Court has set the stage for a legal and operational reckoning for TikTok, its Chinese parent company ByteDance, and the tech giants facilitating its presence in the U.S. market. For businesses and legal practitioners, this case illustrates the complexities of navigating an increasingly fragmented regulatory landscape. Sun, 19 Jan 2025 02:44:58 GMT https://braedenanderson.com/insights/important-notice-for-ncaa-division-i-athletes-submit-claims-for-28-billion-nil-settlement-by-january-31-2025 https://braedenanderson.com/insights/important-notice-for-ncaa-division-i-athletes-submit-claims-for-28-billion-nil-settlement-by-january-31-2025 The NCAA is set to finalize a $2.8 billion settlement over name, image, and likeness (NIL) antitrust claims. This historic agreement could mean significant payouts—averaging $91,000 and up to $280,000—for eligible Division I athletes. If you played Division I basketball or football between 2016 and 2024, now is the time to act. Missing the January 31, 2025 deadline could mean losing your chance to claim your rightful share of this settlement. Sat, 18 Jan 2025 05:38:32 GMT https://braedenanderson.com/insights/coinbase-decision-a-landmark-ruling-for-crypto https://braedenanderson.com/insights/coinbase-decision-a-landmark-ruling-for-crypto The recent decision in the Coinbase case represents a pivotal moment in the ongoing dialogue between cryptocurrency innovation and securities regulation. This ruling not only addresses foundational questions about the classification of digital assets but also provides critical insights into how courts may navigate the intersection of securities laws and emerging technologies. It underscores the importance of proactive compliance and thoughtful advocacy as the crypto industry adapts to an uncertain regulatory landscape. Mon, 13 Jan 2025 21:07:08 GMT https://braedenanderson.com/insights/crypto-isnt-subject-to-wash-sale-rulesand-thats-a-good-thing https://braedenanderson.com/insights/crypto-isnt-subject-to-wash-sale-rulesand-thats-a-good-thing Tax policy and cryptocurrency often intersect in fascinating and sometimes contentious ways, and one prime example is the ongoing debate over the application of the wash sale rules to digital assets. These rules, codified under section 1091 of the tax code, are a cornerstone of tax law for traditional securities, designed to curb tax-motivated sales. However, they currently do not apply to crypto assets—and that’s not a loophole; it’s a deliberate and defensible policy decision rooted in sound tax principles. Mon, 13 Jan 2025 10:30:00 GMT https://braedenanderson.com/insights/treasurys-overreach-in-crypto-broker-reporting-a-legal-and-practical-misstep https://braedenanderson.com/insights/treasurys-overreach-in-crypto-broker-reporting-a-legal-and-practical-misstep Recent developments in Treasury’s crypto broker reporting regulations have ignited heated debate across the digital asset community. At the heart of the controversy lies a significant overreach: Treasury’s expanded definition of “broker” now includes entities like informational websites, platforms with "connect wallet" features, and other services that merely provide users with data they can use to transact on blockchain networks. This interpretation, codified in TD 10021, has drawn sharp criticism for its legal overextension and potential to stifle innovation in the burgeoning crypto sector. Sun, 12 Jan 2025 16:22:21 GMT https://braedenanderson.com/insights/tiktoks-day-in-court-supreme-court-weighs-national-security-against-first-amendment-rights https://braedenanderson.com/insights/tiktoks-day-in-court-supreme-court-weighs-national-security-against-first-amendment-rights On January 10, 2025, the Supreme Court heard arguments in one of the most closely watched cases of the term: whether to uphold a federal law requiring ByteDance, the Chinese parent company of TikTok, to divest from the platform or cease its operations in the United States. At the heart of the case is a collision of First Amendment principles, national security concerns, and the growing influence of foreign-owned technology platforms in American life. Based on the tenor of the arguments, TikTok’s legal challenges appear uphill, with the justices expressing skepticism toward the platform’s defense. Sat, 11 Jan 2025 16:08:37 GMT https://braedenanderson.com/insights/legal-framework-for-the-tokenization-of-real-world-assets https://braedenanderson.com/insights/legal-framework-for-the-tokenization-of-real-world-assets The concept of tokenizing real-world assets (RWAs) has emerged as a transformative innovation at the intersection of technology, finance, and law. By leveraging blockchain technology to digitize ownership, tokenization is reshaping how we perceive, manage, and trade physical and intangible assets. From real estate and precious metals to intellectual property and collectibles, tokenization offers unparalleled opportunities for fractional ownership, liquidity, and efficiency. At its core, tokenization represents the digitization of assets into tokens recorded on a distributed ledger, allowing these assets to be bought, sold, and managed more effectively. Fri, 10 Jan 2025 13:00:00 GMT https://braedenanderson.com/insights/why-startups-should-consider-fractional-general-counsel-services https://braedenanderson.com/insights/why-startups-should-consider-fractional-general-counsel-services At Anderson P.C., we’re thrilled to announce that we now offer this innovative legal solution to startups. Our fractional GC services are designed to help founders focus on what they do best—building their business—while we handle the legal complexities. If you’re interested in learning more about how fractional General Counsel services can benefit your startup, contact us today. Thu, 09 Jan 2025 14:21:00 GMT https://braedenanderson.com/insights/the-evergreen-importance-of-special-committees-in-corporate-governance https://braedenanderson.com/insights/the-evergreen-importance-of-special-committees-in-corporate-governance Special committees have long been a cornerstone of corporate governance, particularly in situations involving conflicts of interest, significant transactions, or internal investigations. Their relevance persists, not just as a response to crises, but as a proactive measure to ensure transparency, fairness, and accountability in decision-making. As corporate transactions become more complex and scrutiny intensifies, the role of special committees remains indispensable. Thu, 09 Jan 2025 02:05:54 GMT https://braedenanderson.com/insights/drafting-effective-board-resolutions-how-to-appoint-a-special-committee-for-internal-investigations https://braedenanderson.com/insights/drafting-effective-board-resolutions-how-to-appoint-a-special-committee-for-internal-investigations In moments of crisis, such as allegations of misconduct or conflicts of interest, a company's board of directors must act decisively and transparently. One powerful tool at its disposal is the creation of a special committee to oversee internal investigations. This article explores the mechanics of drafting board resolutions to appoint such committees, leveraging insights and best practices from Anderson P.C., a boutique securities law firm specializing in governance and regulatory matters. Wed, 08 Jan 2025 14:19:08 GMT https://braedenanderson.com/insights/court-grants-coinbases-motion-for-interlocutory-appeal-stays-sec-litigation https://braedenanderson.com/insights/court-grants-coinbases-motion-for-interlocutory-appeal-stays-sec-litigation In a pivotal development for the cryptocurrency industry, Coinbase Inc. has successfully secured the right to pursue an interlocutory appeal in its ongoing legal battle with the Securities and Exchange Commission (SEC). This rare legal maneuver allows the U.S.-based cryptocurrency exchange to challenge a critical issue in the case before the litigation proceeds further. Wed, 08 Jan 2025 14:10:07 GMT https://braedenanderson.com/insights/operation-chokepoint-20-new-evidence-unveils-coordinated-efforts-against-crypto-under-biden https://braedenanderson.com/insights/operation-chokepoint-20-new-evidence-unveils-coordinated-efforts-against-crypto-under-biden In the wake of newly uncovered Federal Deposit Insurance Corporation (FDIC) documents obtained through Freedom of Information Act (FOIA) requests, the debate over “Operation Chokepoint 2.0” has escalated to a fever pitch. Tue, 07 Jan 2025 05:38:04 GMT https://braedenanderson.com/insights/the-secs-10-billion-dilemma-the-challenges-of-collecting-financial-penalties https://braedenanderson.com/insights/the-secs-10-billion-dilemma-the-challenges-of-collecting-financial-penalties The Securities and Exchange Commission (SEC) has long been heralded as a vigilant enforcer of securities laws, imposing billions of dollars in penalties on violators each year. However, a recent Wall Street Journal report reveals a sobering reality: over the past decade, the SEC has written off nearly $10 billion in fines it was unable to collect. This highlights the significant hurdles the agency faces in enforcing financial sanctions, particularly against individuals and entities adept at evading payment. Sun, 05 Jan 2025 21:46:35 GMT https://braedenanderson.com/insights/should-the-sec-and-cftc-merge-a-comprehensive-analysis-of-a-long-standing-debate https://braedenanderson.com/insights/should-the-sec-and-cftc-merge-a-comprehensive-analysis-of-a-long-standing-debate The longstanding debate over merging the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) has gained fresh urgency after Elon Musk and Vivek Ramaswamy have reignited the conversation. While advocates argue a merger could simplify crypto regulation and bolster systemic risk management, critics warn of operational disruptions and political resistance. This article revisits the history of the merger debate, its modern relevance, and its implications for the future of U.S. financial regulation. Tue, 31 Dec 2024 05:20:35 GMT https://braedenanderson.com/insights/corporate-transparency-act-reporting-obligations-reinstated-with-new-deadlines https://braedenanderson.com/insights/corporate-transparency-act-reporting-obligations-reinstated-with-new-deadlines On December 23, 2024, the U.S. Court of Appeals for the Fifth Circuit granted the U.S. government’s request for an emergency stay, effectively reinstating enforcement of the Corporate Transparency Act (CTA). The stay lifts a nationwide preliminary injunction issued earlier this month by the U.S. District Court for the Eastern District of Texas, which had temporarily blocked CTA compliance requirements and paused the January 1, 2025, reporting deadline. Fri, 27 Dec 2024 12:00:00 GMT https://braedenanderson.com/insights/andersons-guide-to-effective-independent-internal-investigations https://braedenanderson.com/insights/andersons-guide-to-effective-independent-internal-investigations Organizations face heightened scrutiny as financial misconduct, fraud, and ethical breaches become increasingly complex. A well-executed internal investigation is more than just a response to misconduct—it’s an opportunity to demonstrate accountability, strengthen compliance frameworks, and protect your organization’s reputation. At Anderson P.C., we approach internal investigations with precision, independence, and the strategic foresight our clients demand. Whether you are addressing allegations of misconduct or reinforcing your compliance program, our tailored methodologies ensure thorough, defensible, and results-oriented outcomes. Fri, 27 Dec 2024 03:38:03 GMT https://braedenanderson.com/insights/a-quick-guide-on-ai-in-corporate-compliance-in-2025 https://braedenanderson.com/insights/a-quick-guide-on-ai-in-corporate-compliance-in-2025 As we step into 2025, artificial intelligence (AI) continues to redefine corporate landscapes, becoming both an asset and a focal point for regulatory scrutiny. In September 2024, the Department of Justice (DOJ) announced a significant shift in its Evaluation of Corporate Compliance Programs (ECCP), highlighting the risks associated with AI technologies. For organizations, this move underscores an urgent need to integrate AI risk management into their compliance frameworks. Fri, 27 Dec 2024 03:21:24 GMT https://braedenanderson.com/insights/the-supreme-court-in-2025-a-conservative-court-in-a-changing-america https://braedenanderson.com/insights/the-supreme-court-in-2025-a-conservative-court-in-a-changing-america The Supreme Court’s conservative majority reflects more than an ideological leaning—it mirrors the divisions and debates that define American society. For every voice warning of regression, another celebrates restraint and constitutional adherence. For every fear of rights curtailed, there’s a hope for balance restored. The Court’s decisions, however consequential, do not dictate the nation’s future. Fri, 27 Dec 2024 01:55:16 GMT https://braedenanderson.com/insights/beware-of-pig-butchering-schemes-and-the-growing-threat-of-crypto-scams-how-anderson-pc-can-help https://braedenanderson.com/insights/beware-of-pig-butchering-schemes-and-the-growing-threat-of-crypto-scams-how-anderson-pc-can-help 2024 has seen alarming developments in the world of financial fraud, with North Korean hackers stealing a record $1.3 billion in cryptocurrency this year alone. According to a recent Chainalysis report, North Korean-linked hackers accounted for more than half of the $2.2 billion stolen from cryptocurrency platforms in 2024. While these state-sponsored cyberattacks pose a significant threat to national security, individual scams like pig butchering schemes are wreaking havoc on unsuspecting victims worldwide. Sat, 21 Dec 2024 22:23:57 GMT https://braedenanderson.com/insights/sec-adopts-amendments-to-broker-dealer-customer-protection-rule-daily-computations-and-enhanced-safeguards https://braedenanderson.com/insights/sec-adopts-amendments-to-broker-dealer-customer-protection-rule-daily-computations-and-enhanced-safeguards The Securities and Exchange Commission (SEC) has adopted amendments to Rule 15c3-3, commonly known as the Customer Protection Rule, implementing significant updates to the frequency of reserve calculations for broker-dealers. The changes are aimed at bolstering protections for customer assets and enhancing financial stability within the securities markets. Sat, 21 Dec 2024 09:06:39 GMT https://braedenanderson.com/insights/anderson-practical-guide-framework-for-white-collar-crime-in-the-united-states https://braedenanderson.com/insights/anderson-practical-guide-framework-for-white-collar-crime-in-the-united-states White-collar crimes are non-violent, financially motivated offenses typically committed by individuals in professional positions of trust. These crimes are generally classified as felonies, the most serious category of offenses, punishable by more than one year of imprisonment. Understanding the classification and legal implications of white-collar crimes is essential for grasping the severity of penalties involved. Fri, 20 Dec 2024 14:10:00 GMT https://braedenanderson.com/insights/finra-regulatory-notice-24-16-simplified-customer-arbitrations-and-document-production-lists https://braedenanderson.com/insights/finra-regulatory-notice-24-16-simplified-customer-arbitrations-and-document-production-lists FINRA recently issued Regulatory Notice 24-16, announcing amendments to the applicability of the Document Production Lists for simplified customer arbitrations under Rule 12800. These changes, effective March 3, 2025, introduce greater flexibility for customers while clarifying the rules surrounding discovery in such proceedings. Simplified customer arbitrations are designed for disputes involving $50,000 or less, excluding interest and expenses. Thu, 19 Dec 2024 14:00:00 GMT https://braedenanderson.com/insights/finras-december-meeting-outside-activities-reform-and-emerging-legal-challenges https://braedenanderson.com/insights/finras-december-meeting-outside-activities-reform-and-emerging-legal-challenges The December 2024 FINRA Board of Governors meeting comes at a critical juncture, as the organization seeks to modernize its regulatory frameworks while grappling with heightened scrutiny of its authority and practices. Key among the discussions was FINRA’s proposal to consolidate its Outside Business Activities (OBA) and Private Securities Transactions (PST) rules into a unified Outside Activities Requirements Rule . However, this initiative takes place against the backdrop of two significant legal challenges: the Alpine Securities Corp. v. FINRA ruling, which questioned FINRA’s expedited expulsion procedures, and the federal lawsuit Preston v. SEC , which challenges the validity of FINRA Rule 3270 governing outside activities. Wed, 18 Dec 2024 06:14:05 GMT https://braedenanderson.com/insights/crypto-advocates-celebrate-as-caroline-crenshaws-renomination-vote-is-canceled https://braedenanderson.com/insights/crypto-advocates-celebrate-as-caroline-crenshaws-renomination-vote-is-canceled In a notable development for the cryptocurrency industry, the Senate Banking Committee has canceled its vote on the renomination of SEC Commissioner Caroline Crenshaw. Originally scheduled for Wednesday, the vote was postponed due to a procedural conflict, according to a report by FOX Business journalist Eleanor Terrett. With Congress set to adjourn on December 20, this delay ensures that Crenshaw’s renomination will not be processed in time, leaving her future on the Commission uncertain. Wed, 18 Dec 2024 05:58:18 GMT https://braedenanderson.com/insights/ican-petitions-court-to-compel-sec-review-of-accredited-investor-rule https://braedenanderson.com/insights/ican-petitions-court-to-compel-sec-review-of-accredited-investor-rule The Investor Choice Advocates Network (ICAN) has filed a writ of mandamus seeking to compel the SEC to review its definition of “accredited investor,” sparking renewed debate over a long-standing rule that governs participation in private investment markets. At the heart of the issue is whether the current standard, which limits eligibility based on income or net worth, strikes the right balance between protecting investors and fostering economic growth. Fri, 13 Dec 2024 18:49:22 GMT https://braedenanderson.com/insights/crypto-industry-pushes-back-against-caroline-crenshaws-sec-nomination-an-analysis-of-the-battle-over-regulatory-influence https://braedenanderson.com/insights/crypto-industry-pushes-back-against-caroline-crenshaws-sec-nomination-an-analysis-of-the-battle-over-regulatory-influence The nomination of U.S. Securities and Exchange Commission (SEC) member Caroline Crenshaw is sparking fierce resistance from the crypto industry. Dubbed “even more extreme” than SEC Chair Gary Gensler by critics, Crenshaw’s reappointment is being targeted through digital ad campaigns and lobbying efforts. The Cedar Innovation Foundation, a dark-money group backed by unnamed crypto interests, has taken center stage in this opposition, citing her consistent criticism of digital assets and reluctance to approve spot bitcoin exchange-traded funds (ETFs). Thu, 12 Dec 2024 14:23:45 GMT https://braedenanderson.com/insights/sec-exam-priorities-for-2025-what-they-mean-for-investment-advisers https://braedenanderson.com/insights/sec-exam-priorities-for-2025-what-they-mean-for-investment-advisers The Securities and Exchange Commission (SEC) has released its exam priorities for 2025, providing a roadmap for investment advisers to align their compliance programs with the regulator’s expectations. While the political transition under President Donald Trump may result in fewer enforcement actions than under the Biden administration, certain core priorities remain steadfast, regardless of the administration. Wed, 11 Dec 2024 11:00:00 GMT https://braedenanderson.com/insights/corporate-transparency-act-on-pause-pending-doj-appeal-what-it-means-for-january-1-and-beyond https://braedenanderson.com/insights/corporate-transparency-act-on-pause-pending-doj-appeal-what-it-means-for-january-1-and-beyond On December 5, 2024, the Department of Justice (DOJ), on behalf of the Department of the Treasury, filed a Notice of Appeal to the Fifth Circuit Court of Appeals, challenging the nationwide preliminary injunction halting the enforcement of the Corporate Transparency Act’s (CTA) beneficial ownership information (BOI) reporting requirements. The injunction, issued by the U.S. District Court for the Eastern District of Texas, has left companies wondering: What does this mean for compliance? What happens next? And how long will the uncertainty last? Tue, 10 Dec 2024 22:47:02 GMT https://braedenanderson.com/insights/ex-allianz-fund-manager-avoids-prison https://braedenanderson.com/insights/ex-allianz-fund-manager-avoids-prison The former Chief Investment Officer of Allianz Global Investors (AGI) and co-lead portfolio manager of the Structured Alpha funds, recently avoided prison despite pleading guilty to investment adviser fraud. The case, involving over $7 billion in losses for institutional investors, serves as a pivotal example of the risks and responsibilities in financial markets. Tue, 10 Dec 2024 22:35:51 GMT https://braedenanderson.com/insights/reframing-the-critiques-of-a-us-bitcoin-reserve-a-legal-economic-and-strategic-analysis https://braedenanderson.com/insights/reframing-the-critiques-of-a-us-bitcoin-reserve-a-legal-economic-and-strategic-analysis The concept of the U.S. government establishing a Bitcoin reserve has been met with widespread skepticism. Bloomberg’s recent editorial, “Donald Trump’s Bitcoin Reserve Would Rip Off Taxpayers,” encapsulates the majority of critiques, which dismiss Bitcoin as speculative, a waste of taxpayer money, and an unnecessary risk to fiscal stability. These critiques, however, fail to account for the legal, economic, and strategic rationale underlying the proposal, as exemplified by the recently introduced BITCOIN Act of 2024 . Mon, 09 Dec 2024 16:40:15 GMT https://braedenanderson.com/insights/what-to-expect-from-sec-chair-paul-atkins-potential-reforms-and-priorities https://braedenanderson.com/insights/what-to-expect-from-sec-chair-paul-atkins-potential-reforms-and-priorities The nomination of Paul Atkins as Chair of the Securities and Exchange Commission (SEC) signals a new era for the agency. This article explores 13 potential reforms and priorities that could define Atkins’ leadership, based on his past positions, public statements, and the regulatory landscape he inherits. Mon, 09 Dec 2024 16:18:20 GMT https://braedenanderson.com/insights/heightened-sec-scrutiny-investment-advisers-mnpi-policies-under-the-microscope https://braedenanderson.com/insights/heightened-sec-scrutiny-investment-advisers-mnpi-policies-under-the-microscope The Securities and Exchange Commission (SEC) is intensifying its scrutiny of investment advisers’ compliance programs, particularly concerning policies and procedures designed to prevent the misuse of material nonpublic information (MNPI). Recent enforcement actions reveal that even well-intentioned but inadequately tailored policies can fall short of regulatory expectations, underscoring the importance of aligning compliance efforts with the unique risks of an adviser’s business activities. Thu, 05 Dec 2024 11:30:00 GMT https://braedenanderson.com/insights/trump-reportedly-considers-crypto-advocate-paul-atkins-for-sec-chair-role https://braedenanderson.com/insights/trump-reportedly-considers-crypto-advocate-paul-atkins-for-sec-chair-role On December 3, 2024, reports emerged that Donald Trump is reportedly considering crypto-friendly Paul Atkins to lead the Securities and Exchange Commission (SEC), though no official announcement has been made. If confirmed, this move could signal a potential seismic shift in the regulatory approach to cryptocurrency under a new administration. According to the cryptocurrency-focused outlet Unchained , three anonymous sources have confirmed that Trump has approached Atkins for the role, though a decision from Atkins has yet to be announced. Wed, 04 Dec 2024 15:31:27 GMT https://braedenanderson.com/insights/nam-advocates-for-sec-oversight-of-proxy-advisory-firms https://braedenanderson.com/insights/nam-advocates-for-sec-oversight-of-proxy-advisory-firms On December 3, 2024, the National Association of Manufacturers (NAM) filed a brief with the U.S. Court of Appeals for the D.C. Circuit, urging the court to overturn a lower court decision that challenges the Securities and Exchange Commission’s (SEC) authority to regulate proxy advisory firms. This development marks the latest chapter in NAM’s long-standing campaign to ensure proper oversight of these powerful entities. Wed, 04 Dec 2024 15:27:43 GMT https://braedenanderson.com/insights/jpmorgan-employee-challenges-sec-regulation-of-outside-activities https://braedenanderson.com/insights/jpmorgan-employee-challenges-sec-regulation-of-outside-activities On December 3, 2024, a federal lawsuit filed in the U.S. District Court for the District of Arizona challenges the authority of the Securities and Exchange Commission (SEC) to regulate outside business activities of employees through its oversight of Financial Industry Regulatory Authority (FINRA) rules. The case, Preston v. SEC , No. 2:24-cv-03396, raises significant constitutional and administrative law questions. Wed, 04 Dec 2024 15:23:21 GMT https://braedenanderson.com/insights/zj3t0f0ob1tz2aobb38j45vih7onem https://braedenanderson.com/insights/zj3t0f0ob1tz2aobb38j45vih7onem The SEC’s Enforcement Division's 2024 annual report reveals a dramatic shift in its enforcement approach during the fiscal year (October 2023–September 2024), with a striking 26% decline in total enforcement actions compared to 2023. This marked a sharp departure from the post-pandemic trend of rising enforcement activity. Tue, 03 Dec 2024 01:00:51 GMT https://braedenanderson.com/insights/finra-likely-to-amend-expulsion-practices-in-wake-of-dc-circuit-ruling https://braedenanderson.com/insights/finra-likely-to-amend-expulsion-practices-in-wake-of-dc-circuit-ruling The Financial Industry Regulatory Authority (FINRA), the financial industry’s self-regulator, faces a turning point following a recent ruling by the U.S. Court of Appeals for the D.C. Circuit. In Alpine Securities Corp. v. FINRA, the court held that FINRA’s expedited expulsion proceedings likely exceed its authority without prior oversight from the Securities and Exchange Commission (SEC). This decision has significant implications for FINRA’s enforcement practices and the broader broker-dealer landscape. Tue, 03 Dec 2024 00:27:43 GMT https://braedenanderson.com/insights/dc-circuit-issues-long-awaited-decision-in-alpine-v-finra https://braedenanderson.com/insights/dc-circuit-issues-long-awaited-decision-in-alpine-v-finra On November 22, 2024, the D.C. Circuit issued a landmark decision in Alpine Securities Corporation v. FINRA , a case that examines the constitutional boundaries of the Financial Industry Regulatory Authority’s (FINRA) enforcement powers. The ruling enjoined FINRA from expelling Alpine Securities Corporation without prior SEC review, emphasizing the limitations of expedited enforcement proceedings under the nondelegation doctrine. Tue, 03 Dec 2024 00:21:03 GMT https://braedenanderson.com/insights/wisdomtree-files-s-1-for-spot-xrp-etf-with-sec https://braedenanderson.com/insights/wisdomtree-files-s-1-for-spot-xrp-etf-with-sec New York-based asset manager WisdomTree has made waves in the digital asset space with the filing of a Form S-1 registration statement with the Securities and Exchange Commission (SEC) for a spot XRP exchange-traded fund (ETF). This development reflects the firm’s ongoing commitment to expanding its crypto-focused investment products amidst an evolving regulatory environment. Tue, 03 Dec 2024 00:07:08 GMT https://braedenanderson.com/insights/sec-enforcement-trends-in-fiscal-2024-record-remedies-despite-decline-in-actions https://braedenanderson.com/insights/sec-enforcement-trends-in-fiscal-2024-record-remedies-despite-decline-in-actions The U.S. Securities and Exchange Commission (SEC) recently released its enforcement report for fiscal 2024, detailing a year of record-breaking financial remedies amidst a significant decline in the total number of enforcement actions. While the total actions dropped by 26% compared to the previous fiscal year, the SEC obtained an unprecedented $8.2 billion in financial remedies—a testament to the agency’s focused efforts in high-stakes cases. Wed, 27 Nov 2024 23:01:51 GMT https://braedenanderson.com/insights/the-sec-at-a-crossroads-genslers-exit-trumps-administration-and-the-future-of-regulation https://braedenanderson.com/insights/the-sec-at-a-crossroads-genslers-exit-trumps-administration-and-the-future-of-regulation The Securities and Exchange Commission (SEC) stands on the brink of significant change as current Chair Gary Gensler prepares to step down on January 20, 2025. This leadership transition coincides with President-elect Donald Trump’s inauguration and promises to reshape the regulatory landscape for years to come. Sat, 23 Nov 2024 03:42:30 GMT https://braedenanderson.com/insights/finra-dialing-back-dei-and-racial-justice-initiatives-amid-conservative-pressure https://braedenanderson.com/insights/finra-dialing-back-dei-and-racial-justice-initiatives-amid-conservative-pressure The Financial Industry Regulatory Authority (FINRA) has made significant changes to its online content, quietly removing pages that promoted its diversity, equity, inclusion (DEI), and racial justice efforts. These revisions follow an increasing conservative backlash against DEI initiatives across multiple sectors. Wed, 20 Nov 2024 11:00:00 GMT https://braedenanderson.com/insights/big-data-is-watching-you-how-the-sec-uses-advanced-analytics-to-uncover-violations https://braedenanderson.com/insights/big-data-is-watching-you-how-the-sec-uses-advanced-analytics-to-uncover-violations The U.S. Securities and Exchange Commission (SEC) has long stood as the vanguard of financial market integrity, but in recent years, it has transformed into a sophisticated data-driven enforcement machine. By leveraging cutting-edge analytics, the SEC has fundamentally reshaped the landscape of securities regulation, ensuring that the most complex and well-disguised violations come to light. From insider trading and market manipulation to cherry-picking schemes and misconduct in the trading of structured products, the SEC's methods have become simultaneously more advanced and more efficient, making noncompliance an exceedingly risky gamble. Wed, 20 Nov 2024 03:38:42 GMT https://braedenanderson.com/insights/finras-proposed-changes-to-rule-6500-series-aim-to-simplify-slate-reporting https://braedenanderson.com/insights/finras-proposed-changes-to-rule-6500-series-aim-to-simplify-slate-reporting FINRA has issued a set of proposed amendments to Rule 6500 Series, which governs the Securities Lending and Transparency Engine (SLATE). These changes are designed to address feedback from market participants and to make the reporting process more manageable, while also expediting the implementation of the SLATE system. Wed, 20 Nov 2024 02:30:17 GMT https://braedenanderson.com/insights/how-to-start-a-hedge-fund-the-definitive-legal-and-practical-guide https://braedenanderson.com/insights/how-to-start-a-hedge-fund-the-definitive-legal-and-practical-guide Establishing a hedge fund in the United States is a high-stakes, complex undertaking that requires not only a robust investment strategy but also a meticulous approach to legal and regulatory compliance. While the hedge fund world offers lucrative opportunities for those who succeed, it also comes with significant challenges. This handbook is designed to provide you with the most thorough, balanced, and actionable guide available on the internet, offering deep insights into each phase of the process. If you’re serious about starting a hedge fund, this is your essential roadmap. Tue, 19 Nov 2024 15:02:30 GMT https://braedenanderson.com/insights/trump-to-meet-privately-with-coinbase-ceo-brian-armstrong-what-it-means-for-crypto-regulation https://braedenanderson.com/insights/trump-to-meet-privately-with-coinbase-ceo-brian-armstrong-what-it-means-for-crypto-regulation President-elect Donald Trump is set to meet privately with Coinbase CEO Brian Armstrong on Monday, marking a significant moment for the cryptocurrency industry. According to sources familiar with the matter, the meeting is expected to focus on key personnel appointments for Trump’s second administration, potentially signaling a major shift in the regulatory landscape for digital assets. Tue, 19 Nov 2024 14:48:10 GMT https://braedenanderson.com/insights/sec-charges-bit-mining-with-fcpa-violations-in-connection-with-bribery-scheme-to-influence-members-of-japanese-parliament https://braedenanderson.com/insights/sec-charges-bit-mining-with-fcpa-violations-in-connection-with-bribery-scheme-to-influence-members-of-japanese-parliament The Securities and Exchange Commission (SEC) has announced a significant enforcement action involving BIT Mining Ltd., formerly known as 500.com Limited, for violations of the Foreign Corrupt Practices Act (FCPA). The company has agreed to pay a $4 million civil penalty to resolve charges stemming from a bribery scheme that took place from 2017 to 2019. The scheme aimed to influence Japanese government officials, including members of Japan’s parliament, in an effort to establish an integrated resort and casino in the country. Tue, 19 Nov 2024 14:45:06 GMT https://braedenanderson.com/insights/crypto-legislation-likely-coming-under-trump-ex-sec-chief-jay-clayton-predicts https://braedenanderson.com/insights/crypto-legislation-likely-coming-under-trump-ex-sec-chief-jay-clayton-predicts As the United States braces for a shift in regulatory priorities, former SEC Chairman Jay Clayton announced on Wednesday that he anticipates significant legislative action on cryptocurrency under President-elect Donald Trump’s upcoming administration. Speaking at a gathering of securities lawyers in New York, Clayton hinted at a friendlier regulatory environment for the crypto industry, a stark contrast to the enforcement-heavy approach seen under President Joe Biden. Fri, 15 Nov 2024 20:16:33 GMT https://braedenanderson.com/insights/18-states-sue-sec-and-gary-gensler-for-alleged-regulatory-overreach-on-crypto https://braedenanderson.com/insights/18-states-sue-sec-and-gary-gensler-for-alleged-regulatory-overreach-on-crypto The Securities and Exchange Commission (SEC) and its Chair, Gary Gensler, are facing significant legal pushback from 18 Republican attorneys general, who have filed a lawsuit accusing the agency of overstepping its regulatory bounds in its enforcement actions against the cryptocurrency industry. The lawsuit, led by Kentucky Attorney General Russell Coleman, is a pivotal moment in the ongoing battle over the future of crypto regulation in the United States. Fri, 15 Nov 2024 19:51:48 GMT https://braedenanderson.com/insights/fbi-seizes-polymarket-ceos-phone-following-trump-election-prediction https://braedenanderson.com/insights/fbi-seizes-polymarket-ceos-phone-following-trump-election-prediction Federal authorities have raised eyebrows with a high-profile seizure of electronic devices from Polymarket CEO Shayne Coplan’s Soho residence. The early-morning raid occurred just a week after Polymarket, a decentralized prediction market platform, accurately forecast Donald Trump’s presidential election victory. This incident has sparked debate over the potential political motivations and broader regulatory implications for decentralized finance. Fri, 15 Nov 2024 19:47:52 GMT https://braedenanderson.com/insights/gary-gensler-releases-statement-hinting-at-resignation-as-sec-chair https://braedenanderson.com/insights/gary-gensler-releases-statement-hinting-at-resignation-as-sec-chair In a surprising turn of events, SEC Chair Gary Gensler has hinted at a potential resignation, marking a significant moment in the world of financial regulation. Speaking at the Practising Law Institute’s 56th Annual Institute on Securities Regulation, Gensler delivered a reflective address, acknowledging both the achievements and controversies of his tenure. His remarks have left industry insiders speculating about the future of the SEC, especially as the agency grapples with the rapidly evolving landscape of cryptocurrency and financial technology. Fri, 15 Nov 2024 19:42:32 GMT https://braedenanderson.com/insights/sec-trends-november-2024 https://braedenanderson.com/insights/sec-trends-november-2024 As the Securities and Exchange Commission (SEC) continues to evolve its examination and enforcement priorities, fund managers are increasingly in the spotlight. The SEC’s National Examination Program plays a critical role in promoting compliance, reducing fraud risk, and informing regulatory policy—all while serving as a key source of enforcement referrals. With these trends in mind, fund managers must be vigilant and prepared. Here’s what to watch for in 2024 and beyond. Thu, 14 Nov 2024 10:30:00 GMT https://braedenanderson.com/insights/a-second-trump-administration-implications-for-the-securities-industry https://braedenanderson.com/insights/a-second-trump-administration-implications-for-the-securities-industry With Donald J. Trump’s return to the White House confirmed on November 6, 2024, the financial industry is preparing for sweeping regulatory changes. From the banking sector to private funds, stakeholders are crafting detailed wish lists, hoping to shape the new administration’s economic and regulatory agenda. Trump’s victory is set to usher in a more business-friendly environment, with Wall Street and asset managers eagerly anticipating reforms. Wed, 13 Nov 2024 06:31:27 GMT https://braedenanderson.com/insights/trump-hints-at-recess-appointment-for-sec-chair-as-bitcoin-nears-90000 https://braedenanderson.com/insights/trump-hints-at-recess-appointment-for-sec-chair-as-bitcoin-nears-90000 The recent election of Donald Trump as the next president of the United States has sent shockwaves through the financial world, with Bitcoin and other cryptocurrencies experiencing an unprecedented rally. Bitcoin, the world’s largest cryptocurrency, hit a record high of nearly $90,000, buoyed by expectations of a more crypto-friendly regulatory environment under Trump’s leadership. The surge comes as Trump hints at making sweeping changes to the Securities and Exchange Commission (SEC), including replacing Chair Gary Gensler through a controversial recess appointment. Wed, 13 Nov 2024 06:19:29 GMT https://braedenanderson.com/insights/sec-crackdown-key-enforcement-trends-in-cyber-disclosure-director-independence-and-reg-fd https://braedenanderson.com/insights/sec-crackdown-key-enforcement-trends-in-cyber-disclosure-director-independence-and-reg-fd The U.S. Securities and Exchange Commission’s (SEC) Division of Enforcement has intensified its focus on significant areas of compliance for public companies. Recent actions have targeted cybersecurity incident disclosures, director independence misrepresentations, and violations of Regulation Fair Disclosure (Reg FD). Here’s what you need to know about these developments and how they could impact your company. Wed, 13 Nov 2024 06:01:13 GMT https://braedenanderson.com/insights/sec-division-of-examinations-2025-priorities https://braedenanderson.com/insights/sec-division-of-examinations-2025-priorities In a November 4, 2024, risk alert, the Division of Examinations (the “Division”) of the U.S. Securities and Exchange Commission (SEC) unveiled its strategic, risk-based approach to selecting registered investment companies for examination. The Division also shed light on its methodology for scoping exams and shared notable examples of common deficiencies encountered during recent reviews. Wed, 13 Nov 2024 05:56:06 GMT https://braedenanderson.com/insights/navigating-complex-exemptions-sec-compliance-questions-on-securities-act-provisions https://braedenanderson.com/insights/navigating-complex-exemptions-sec-compliance-questions-on-securities-act-provisions Professionals often encounter nuanced questions about SEC registration requirements under the Securities Act. This compliance blog addresses selected Securities Act provisions, focusing on real-world questions frequently posed by issuers navigating exempt offerings, dividend distributions, and registration complexities. Let’s explore common scenarios and their SEC guidance, covering Sections 2(a)(3), 2(a)(4), 2(a)(11), and 3(a)(9) as well as recent insights on securities offerings, transfer procedures, and beneficial ownership. Tue, 05 Nov 2024 06:21:00 GMT https://braedenanderson.com/insights/compliance-guide-disqualification-of-felons-and-other-bad-actors-from-rule-506-offerings https://braedenanderson.com/insights/compliance-guide-disqualification-of-felons-and-other-bad-actors-from-rule-506-offerings In 2013, the SEC introduced "bad actor" disqualification provisions under Rule 506 of Regulation D , implementing Section 926 of the Dodd-Frank Act. This compliance guide provides a comprehensive look at how these provisions impact issuers seeking to rely on Rule 506 exemptions, covering disqualifying events, exceptions, waiver processes, disclosure requirements, and transitional considerations. Tue, 05 Nov 2024 06:09:40 GMT https://braedenanderson.com/insights/waivers-of-disqualification-under-regulation-a-and-rules-505-and-506-of-regulation-d-understanding-key-requirements-and-sec-review https://braedenanderson.com/insights/waivers-of-disqualification-under-regulation-a-and-rules-505-and-506-of-regulation-d-understanding-key-requirements-and-sec-review In the U.S. securities framework, issuers often rely on exemptions like Regulation A and Regulation D to raise capital without registering their offerings. However, certain disqualifying events can bar a company from using these exemptions, particularly if there has been past misconduct involving the issuer, its officers, or significant shareholders. This guide will explore the disqualification rules for exempt offerings, when waivers may be available, and the factors that the Securities and Exchange Commission (SEC) considers when reviewing waiver requests. Tue, 05 Nov 2024 06:00:53 GMT https://braedenanderson.com/insights/equity-crowdfunding-is-it-right-for-your-company https://braedenanderson.com/insights/equity-crowdfunding-is-it-right-for-your-company Many entrepreneurs exploring funding options ask whether equity crowdfunding is a viable choice. The answer, as with most legal questions, is “it depends.” Equity crowdfunding gained traction with the Jumpstart Our Business Startups Act (JOBS Act) in 2012, which allowed companies to raise capital from the public without the need for costly SEC registration. However, despite the promising opportunity, this funding approach comes with benefits, regulatory requirements, and significant limitations. Tue, 05 Nov 2024 05:53:52 GMT https://braedenanderson.com/insights/can-you-raise-money-from-investors-who-are-not-accredited-investors https://braedenanderson.com/insights/can-you-raise-money-from-investors-who-are-not-accredited-investors One common question from founders is whether they can include non-accredited investors—like friends or family—when raising capital. The quick answers are: “It’s possible, but complicated,” and “You generally shouldn’t unless you’re prepared for the added compliance burden.” Let’s dive into why raising funds from non-accredited investors can be challenging and what regulations apply. Tue, 05 Nov 2024 05:40:29 GMT https://braedenanderson.com/insights/frequently-asked-questions-convertible-debt-for-startups https://braedenanderson.com/insights/frequently-asked-questions-convertible-debt-for-startups I get frequent questions from founders navigating convertible debt for the first time. Convertible debt can be an excellent financing tool, but it’s also complex and nuanced. Here are some of the questions I’m most often asked. Feel free to reach out if there’s something you’d like me to add! Tue, 05 Nov 2024 05:33:21 GMT https://braedenanderson.com/insights/convertible-debt-basics-a-guide-for-startups https://braedenanderson.com/insights/convertible-debt-basics-a-guide-for-startups Convertible debt is a popular fundraising tool for early-stage companies, offering a flexible way to raise capital without immediate valuation pressures. It combines elements of both debt and equity, providing investors with a note that typically converts into equity upon the company’s next qualifying financing round. Here’s a breakdown of the key features and considerations for startups considering convertible debt. Tue, 05 Nov 2024 05:31:16 GMT https://braedenanderson.com/insights/post-incorporation-checklist-10-essential-steps-for-new-startups https://braedenanderson.com/insights/post-incorporation-checklist-10-essential-steps-for-new-startups Incorporating your business is a milestone, but it’s just the beginning. Once you’ve established your company as a Delaware corporation (or other entity), there are essential next steps that will set your business up for future growth, investment, and compliance. Here’s a checklist to guide you through the critical actions to take after incorporation. Tue, 05 Nov 2024 05:28:44 GMT https://braedenanderson.com/insights/choosing-between-stock-and-options-for-service-providers-establishing-a-culture-of-ownership https://braedenanderson.com/insights/choosing-between-stock-and-options-for-service-providers-establishing-a-culture-of-ownership For startups, offering equity to key contributors—whether employees, consultants, or advisors—can be a powerful tool for attracting talent and fostering long-term engagement. However, deciding whether to grant stock or stock options involves strategic considerations, as each has distinct legal, financial, and tax implications. This article provides a comprehensive overview of the differences between stock and options, helping companies make informed choices that align with their goals and establish a clear ownership culture. Tue, 05 Nov 2024 05:19:48 GMT https://braedenanderson.com/insights/avoiding-common-pitfalls-in-issuing-stock-options-to-us-service-providers https://braedenanderson.com/insights/avoiding-common-pitfalls-in-issuing-stock-options-to-us-service-providers For many US startups, stock options are a crucial tool for attracting and retaining talent, incentivizing employees, consultants, and advisors. However, issuing options comes with intricate legal and tax considerations, and missteps can lead to costly complications. Here are five common pitfalls that US companies encounter in the process of granting stock options—and strategies to avoid them. Tue, 05 Nov 2024 05:17:57 GMT https://braedenanderson.com/insights/structuring-advisor-option-grants-key-considerations-for-startups https://braedenanderson.com/insights/structuring-advisor-option-grants-key-considerations-for-startups For many startups, attracting experienced advisors is an essential step in building expertise and credibility. Advisors bring unique business and technical insights, often lending their time in exchange for equity through option grants. However, structuring these grants effectively can be nuanced, balancing the interests of both the advisor and the company. Here’s a look at some important factors to consider when setting up advisor option grants. Tue, 05 Nov 2024 05:13:46 GMT https://braedenanderson.com/insights/understanding-key-legal-and-financial-terms-a-glossary-for-founders-and-investors https://braedenanderson.com/insights/understanding-key-legal-and-financial-terms-a-glossary-for-founders-and-investors This glossary serves as a comprehensive resource for founders, investors, and anyone involved in business and legal transactions. Each term is defined with detailed explanations, clarifying its role in corporate governance, venture financing, intellectual property management, and regulatory compliance. While some of these terms may be familiar, others are specific to niche areas like securities law, anti-dilution mechanisms, and fiduciary duties, each carrying significant implications for business strategy and legal obligations. Tue, 05 Nov 2024 05:08:36 GMT https://braedenanderson.com/insights/securities-enforcement-forum-dc-2024-examining-enforcement-in-a-shifting-regulatory-landscape https://braedenanderson.com/insights/securities-enforcement-forum-dc-2024-examining-enforcement-in-a-shifting-regulatory-landscape The Securities Enforcement Forum in Washington, D.C. has become an annual fixture for professionals navigating securities enforcement. This year’s conference on November 6, at the Mayflower Hotel, promises to provide a nuanced examination of regulatory shifts and enforcement priorities in the wake of the U.S. election. Tue, 05 Nov 2024 04:49:29 GMT https://braedenanderson.com/insights/choosing-the-right-cap-table-platform-a-guide-for-entrepreneurs https://braedenanderson.com/insights/choosing-the-right-cap-table-platform-a-guide-for-entrepreneurs A well-maintained cap table is the unsung hero of a successful startup. It’s not just a table—it’s a complete, precise, and evolving record of your company’s ownership structure, from shares and options to complex vesting schedules and SAFE notes. Your cap table reflects each owner’s economic interest, voting rights, and claim to future profits. And when managed correctly, it’s a core asset that keeps your company’s foundations rock-solid, allowing you to focus on growth without fear of surprises or costly fixes down the road. Fri, 01 Nov 2024 17:00:00 GMT https://braedenanderson.com/insights/the-impact-of-technology-on-securities-markets-a-legal-perspective-on-the-secs-report https://braedenanderson.com/insights/the-impact-of-technology-on-securities-markets-a-legal-perspective-on-the-secs-report The SEC’s recent report to Congress on the impact of technological advances in securities markets isn’t merely a catalog of tech developments; it’s an inventory of how these tools alter the market’s fundamental mechanics—and, yes, its regulatory challenges. If the 20th century markets were defined by floor traders, telephone orders, and paper filings, the 21st century has swiftly evolved into a digital arena dominated by algorithms, blockchain, and AI. The upshot? We’re witnessing a market that’s faster, more accessible, and potentially more transparent, but also laden with new regulatory wrinkles. Let’s examine what the SEC has to say about this digital transformation and its implications for legal compliance, investor protection, and, well, market stability. Fri, 01 Nov 2024 14:00:00 GMT https://braedenanderson.com/insights/15-essential-legal-and-financial-considerations-for-entrepreneurs-and-start-ups https://braedenanderson.com/insights/15-essential-legal-and-financial-considerations-for-entrepreneurs-and-start-ups Embarking on a new business venture is exhilarating, but success in today’s competitive market requires more than just a great idea. Laying the right legal and financial groundwork from the outset can mean the difference between thriving and merely surviving. From choosing the ideal business structure to safeguarding your intellectual property, the right decisions early on protect your assets, attract investors, and set your business on a path to sustainable growth. Here’s a roadmap of 15 critical legal and financial considerations that every entrepreneur should prioritize to create a solid foundation and inspire confidence in stakeholders. Fri, 01 Nov 2024 12:30:00 GMT https://braedenanderson.com/insights/under-the-radar-sec-penalizes-adviser-for-weak-mnpi-controls-in-clo-trades https://braedenanderson.com/insights/under-the-radar-sec-penalizes-adviser-for-weak-mnpi-controls-in-clo-trades Managing MNPI risk is no longer just about avoiding direct trades on inside information; it’s about creating robust, tailored safeguards that address the way MNPI can impact related investments, particularly in intricate vehicles like CLOs. With the SEC placing renewed focus on MNPI in credit markets, now is the time to ensure your compliance protocols are more than just routine. This article unpacks the SEC’s action against Sound Point and provides essential takeaways for investment advisers on avoiding similar pitfalls. Thu, 31 Oct 2024 16:42:13 GMT https://braedenanderson.com/insights/companies-seeking-capitalbe-wary-of-consultants-and-finders https://braedenanderson.com/insights/companies-seeking-capitalbe-wary-of-consultants-and-finders For smaller companies and startups seeking to raise capital, encountering consultants or “finders” who promise to connect them with potential investors is common. While these individuals may offer valuable introductions, companies must carefully consider the legal framework surrounding these services. Engaging unregistered individuals in capital-raising activities can lead to regulatory and legal consequences that can jeopardize the success of the funding round and the company’s future growth. However, a legally compliant path exists for certain “finders” to operate without triggering registration as a broker-dealer. Wed, 30 Oct 2024 19:32:38 GMT https://braedenanderson.com/insights/trillium-capital-manager-sentenced-to-prison-for-securities-fraud-in-getty-images-scheme https://braedenanderson.com/insights/trillium-capital-manager-sentenced-to-prison-for-securities-fraud-in-getty-images-scheme A Massachusetts-based venture capitalist, Robert Scott Murray, was sentenced today in Boston’s federal court for orchestrating a securities fraud scheme designed to inflate the trading price of Getty Images Holdings, Inc. (NYSE: GETY). Murray, 61, will serve 10 months in prison and two years of supervised release, as ordered by U.S. District Judge Denise J. Casper. Additionally, he faces forfeiture of $227,543 in illicit gains. Murray, who pleaded guilty in June 2024 to one count of securities fraud, had previously led several public companies, including Stream Global Services and 3Com, before founding and managing Trillium Capital LLC. Wed, 30 Oct 2024 16:24:24 GMT https://braedenanderson.com/insights/sec-charges-the-lovesac-company-and-former-executives-with-accounting-violations-over-concealed-shipping-expenses https://braedenanderson.com/insights/sec-charges-the-lovesac-company-and-former-executives-with-accounting-violations-over-concealed-shipping-expenses The Securities and Exchange Commission (SEC) recently announced charges against The Lovesac Company, a publicly traded furniture retailer based in Connecticut, as well as two of its former executives, Donna Dellomo, CPA (the company’s former CFO), and Yoon Um, CPA (the former controller), for alleged accounting violations. These charges stem from unreported shipping expenses that allegedly skewed the company's financial records and metrics. Lovesac has agreed to settle the claims, including a civil penalty payment of $1.5 million. Wed, 30 Oct 2024 16:21:22 GMT https://braedenanderson.com/insights/tether-ceo-acknowledges-vulnerability-to-us-government-control-amidst-renewed-scrutiny https://braedenanderson.com/insights/tether-ceo-acknowledges-vulnerability-to-us-government-control-amidst-renewed-scrutiny As Tether, the largest stablecoin issuer in the crypto market, faces increasing regulatory pressure, CEO Paolo Ardoino recently underscored the company’s complex relationship with U.S. authorities in an interview with CoinDesk. Despite Tether's compliance with international sanctions and cooperation with law enforcement, Ardoino acknowledged that the company’s survival ultimately depends on the discretion of U.S. regulators. "If the U.S. wanted to kill us, they can press a button and kill us anywhere,” Ardoino stated, adding that Tether’s approach is not to challenge U.S. authority directly. Tue, 29 Oct 2024 15:13:41 GMT https://braedenanderson.com/insights/coinbase-ceo-calls-for-accountability-from-future-sec-chair-over-crypto-regulation-missteps https://braedenanderson.com/insights/coinbase-ceo-calls-for-accountability-from-future-sec-chair-over-crypto-regulation-missteps In a bold statement on October 29, Coinbase CEO Brian Armstrong voiced his frustrations with the Securities and Exchange Commission's (SEC) handling of crypto regulation, stating that the agency's next chair should issue a public apology for what he described as "damage" to the American crypto sector. Armstrong highlighted years of inconsistent statements and actions from the SEC, which he argues have harmed innovation, created regulatory confusion, and discouraged crypto businesses from operating in the U.S. Tue, 29 Oct 2024 13:09:35 GMT https://braedenanderson.com/insights/sec-adopts-new-rules-to-strengthen-risk-management-and-resilience-of-covered-clearing-agencies https://braedenanderson.com/insights/sec-adopts-new-rules-to-strengthen-risk-management-and-resilience-of-covered-clearing-agencies The U.S. Securities and Exchange Commission (SEC) has adopted key rule amendments and introduced a new rule aimed at enhancing the resilience and risk management practices of covered clearing agencies. These measures are designed to bolster the stability of the financial system by mandating intraday margin collection, ensuring the reliability of risk-based margin model inputs, and formalizing recovery and wind-down planning protocols. Fri, 25 Oct 2024 21:41:16 GMT https://braedenanderson.com/insights/exploring-finras-new-report-on-metaverse-opportunities-and-challenges-for-the-securities-industry https://braedenanderson.com/insights/exploring-finras-new-report-on-metaverse-opportunities-and-challenges-for-the-securities-industry On October 24, 2024, FINRA released an eye-opening report, The Metaverse and the Implications for the Securities Industry , addressing the securities industry’s potential engagement with the metaverse—a rapidly evolving virtual landscape. The report underscores emerging use cases, industry challenges, and regulatory considerations for broker-dealers and other FINRA member firms looking to leverage immersive virtual technology to innovate in customer engagement, data visualization, trading, and investor education. Fri, 25 Oct 2024 21:30:52 GMT https://braedenanderson.com/insights/finra-strengthens-borrowing-and-lending-rules-key-amendments-to-rule-3240-effective-april-2025 https://braedenanderson.com/insights/finra-strengthens-borrowing-and-lending-rules-key-amendments-to-rule-3240-effective-april-2025 The Financial Industry Regulatory Authority (FINRA) has adopted significant amendments to Rule 3240, which governs borrowing and lending arrangements between registered persons and their customers. These updates, effective April 28, 2025, are designed to reinforce the general prohibition against such arrangements and introduce several key modifications, including stricter notice and approval requirements, a modernized definition of “immediate family,” and narrower exceptions for personal and business relationships. Thu, 24 Oct 2024 09:30:00 GMT https://braedenanderson.com/insights/start-ups-and-fundraising https://braedenanderson.com/insights/start-ups-and-fundraising Start-ups and Fundraising At Anderson P.C., we provide expert legal services tailored to the unique needs of startups, entrepreneurs, and growing businesses. Led by Braeden Anderson , our firm specializes in offering strategic guidance on key aspects of business formation, fundraising, and corporat Wed, 23 Oct 2024 20:13:14 GMT https://braedenanderson.com/insights/gensler-reaffirms-secs-regulation-by-enforcement-approach-to-crypto-amidst-industry-debate https://braedenanderson.com/insights/gensler-reaffirms-secs-regulation-by-enforcement-approach-to-crypto-amidst-industry-debate Securities and Exchange Commission (SEC) Chair Gary Gensler has once again reiterated his commitment to the agency's ongoing regulation-by-enforcement strategy concerning cryptocurrency. Despite criticism from various sectors of the digital asset industry, Gensler maintains that the SEC’s efforts are firmly grounded in decades of legal precedent, and he intends to continue this approach to provide clarity and protection in the rapidly evolving world of digital assets. Wed, 23 Oct 2024 19:34:47 GMT https://braedenanderson.com/insights/unpacking-the-secs-2025-examination-priorities-whats-on-the-horizon-for-investment-advisers-broker-dealers-and-the-financial-sector https://braedenanderson.com/insights/unpacking-the-secs-2025-examination-priorities-whats-on-the-horizon-for-investment-advisers-broker-dealers-and-the-financial-sector With the dawn of a new fiscal year, the U.S. Securities and Exchange Commission’s (SEC) Division of Examinations has unveiled its 2025 examination priorities. This annual roadmap serves as both a warning and a guide for firms navigating the ever-evolving regulatory landscape. The 2025 priorities not only highlight long-standing risk areas like fiduciary duty and cybersecurity, but also shine a spotlight on cutting-edge issues such as artificial intelligence and the growing complexities surrounding crypto assets. Wed, 23 Oct 2024 19:30:24 GMT https://braedenanderson.com/insights/kamala-harriss-team-is-considering-candidates-to-replace-sec-chair-gary-gensler https://braedenanderson.com/insights/kamala-harriss-team-is-considering-candidates-to-replace-sec-chair-gary-gensler With the 2024 election heating up and polls showing a tight race between Vice President Kamala Harris and former President Donald Trump, both camps are laying out vastly different strategies, including their approaches to regulatory enforcement. As part of Harris’s transition planning, her team is already vetting candidates to replace Gary Gensler as Chair of the Securities and Exchange Commission (SEC), signaling potential shifts in the Commission's direction—particularly in its treatment of cryptocurrency and emerging financial technologies. Tue, 22 Oct 2024 14:29:27 GMT https://braedenanderson.com/insights/sec-charges-wisdomtree-asset-management-with-esg-misstatements-and-compliance-failures https://braedenanderson.com/insights/sec-charges-wisdomtree-asset-management-with-esg-misstatements-and-compliance-failures The Securities and Exchange Commission (SEC) has charged WisdomTree Asset Management, Inc., a New York-based investment adviser, with failing to adhere to its own investment criteria for funds marketed as incorporating environmental, social, and governance (ESG) factors. The charges stem from the firm’s misstatements and compliance lapses related to the execution of its ESG investment strategies. Tue, 22 Oct 2024 14:09:00 GMT https://braedenanderson.com/insights/regulatory-compliance-in-a-whistleblower-focused-era-how-companies-can-stay-ahead https://braedenanderson.com/insights/regulatory-compliance-in-a-whistleblower-focused-era-how-companies-can-stay-ahead With regulators intensifying scrutiny, companies today face growing pressure to strengthen their compliance programs, especially in an environment where whistleblower activity is on the rise. Both the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) have sharpened their focus on what they expect from businesses when it comes to managing risk, ensuring ethical behavior, and maintaining transparent operations. Fri, 18 Oct 2024 12:00:00 GMT https://braedenanderson.com/insights/musk-and-dogecoin-investors-go-another-round-post-dismissal-sanctions-motions-in-dogecoin-class-action https://braedenanderson.com/insights/musk-and-dogecoin-investors-go-another-round-post-dismissal-sanctions-motions-in-dogecoin-class-action The legal drama between Elon Musk, Tesla, and Dogecoin investors continues to unfold in a battle that refuses to end, even after the dismissal of a securities class action by a Manhattan federal judge in late August 2023. Initially, the Dogecoin investors accused Musk and Tesla of manipulating the price of the cryptocurrency for personal and corporate gain. However, after four rounds of amendments to the complaint, the judge dismissed the case, seemingly putting an end to the litigation. Fri, 18 Oct 2024 11:30:00 GMT https://braedenanderson.com/insights/sec-charges-north-carolina-resident-with-insider-trading-in-biopharmaceutical-company https://braedenanderson.com/insights/sec-charges-north-carolina-resident-with-insider-trading-in-biopharmaceutical-company In a recent enforcement action, the Securities and Exchange Commission (SEC) charged Matthew Groom, a North Carolina resident, with insider trading involving the Massachusetts-based biopharmaceutical company, Spero Therapeutics, Inc. According to the SEC’s complaint, Groom used confidential information obtained during his role as an IT consultant for Spero to avoid substantial financial losses ahead of a significant corporate announcement. Thu, 17 Oct 2024 16:00:00 GMT https://braedenanderson.com/insights/sec-alleges-cumberland-drw-sold-2-billion-in-unregistered-securities https://braedenanderson.com/insights/sec-alleges-cumberland-drw-sold-2-billion-in-unregistered-securities In a new enforcement action that adds fuel to the ongoing regulatory battle over digital assets, the U.S. Securities and Exchange Commission (SEC) has sued Chicago-based crypto trading firm Cumberland DRW. The lawsuit, filed on October 10, 2024, accuses Cumberland of operating as an unregistered broker and handling over $2 billion worth of crypto assets—specifically, tokens like Solana and Polygon—that the SEC claims are unregistered securities. Thu, 17 Oct 2024 11:00:00 GMT https://braedenanderson.com/insights/start-up-ai-and-robotics-company-and-ceo-face-sec-charges-for-investor-fraud https://braedenanderson.com/insights/start-up-ai-and-robotics-company-and-ceo-face-sec-charges-for-investor-fraud In a recent enforcement action, the Securities and Exchange Commission (SEC) charged Destiny Robotics Corp., a start-up specializing in artificial intelligence (AI) and robotics, along with its founder and CEO, Megi Kavtaradze, for allegedly defrauding investors through false and misleading statements about the company’s operations and products. Wed, 16 Oct 2024 22:45:44 GMT https://braedenanderson.com/insights/october-sec-round-up https://braedenanderson.com/insights/october-sec-round-up October 2024 has seen the Securities and Exchange Commission (SEC) continue its aggressive enforcement actions and regulatory updates, targeting a wide range of issues from improper record-keeping to non-compliance with new marketing rules. This month also saw key personnel changes within the SEC, the disbandment of the Climate and ESG Task Force, and the adoption of rules affecting venture capital funds and registered investment companies. Below are the highlights of recent SEC actions and regulatory developments. Wed, 16 Oct 2024 11:30:00 GMT https://braedenanderson.com/insights/sec-commissioner-mark-uyeda-criticizes-agencys-crypto-policy-as-a-disaster https://braedenanderson.com/insights/sec-commissioner-mark-uyeda-criticizes-agencys-crypto-policy-as-a-disaster In a striking rebuke of the U.S. Securities and Exchange Commission’s (SEC) approach to cryptoc regulation, SEC Commissioner Mark Uyeda publicly criticized the agency's handling of the industry, calling it a "disaster" during a Fox Business panel on October 10. Uyeda's remarks reflect growing internal dissent over how the SEC, under the leadership of Chair Gary Gensler, has enforced crypto policy without providing the much-needed clarity the sector requires. Wed, 16 Oct 2024 02:10:59 GMT https://braedenanderson.com/insights/is-the-sec-finished-with-npas-and-dpas-in-fcpa-cases https://braedenanderson.com/insights/is-the-sec-finished-with-npas-and-dpas-in-fcpa-cases In 2010, the SEC introduced Deferred Prosecution Agreements (DPAs) and Non-Prosecution Agreements (NPAs) as part of a strategy to strengthen its enforcement efforts by encouraging cooperation from companies and individuals. However, since then, the SEC has rarely used these tools, employing DPAs only twice and NPAs three times, mostly in FCPA enforcement actions. The last use of either agreement was in 2016 in cases involving Nortek and Akamai Technologies. Since then, the SEC has not returned to NPAs or DPAs, raising questions about whether the agency has moved away from these agreements for resolving FCPA cases. Mon, 14 Oct 2024 21:54:19 GMT https://braedenanderson.com/insights/sec-charges-magic-mushroom-company-and-two-individuals-in-8-million-pump-and-dump https://braedenanderson.com/insights/sec-charges-magic-mushroom-company-and-two-individuals-in-8-million-pump-and-dump The Securities and Exchange Commission (SEC) has filed charges against Minerco Inc. (former over-the-counter ticker: MINE) and two individuals—Bobby Shumake Japhia and Julius Makiri Jenge—in connection with an alleged multimillion-dollar pump-and-dump scheme that defrauded investors out of approximately $8 million. The SEC's complaint alleges that the defendants generated millions of dollars in illicit profits by manipulating the market for Minerco’s stock through deceptive tactics and false promotions. Fri, 11 Oct 2024 09:30:00 GMT https://braedenanderson.com/insights/sec-chair-gary-gensler-on-crypto-its-unlikely-this-stuff-is-gonna-be-a-currency https://braedenanderson.com/insights/sec-chair-gary-gensler-on-crypto-its-unlikely-this-stuff-is-gonna-be-a-currency In a recent speech at New York University School of Law, U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler made headlines with his assertion that cryptocurrencies like Bitcoin (BTC) are unlikely to ever become widely accepted forms of currency. While this statement may have grabbed attention, it largely reiterates what many industry participants already understand: the primary value of crypto assets lies in their utility as a store of value or an investment vehicle, not as a replacement for fiat currencies. Gensler’s comments, while perhaps technically accurate, miss the mark in addressing the real issues facing the crypto industry today. Fri, 11 Oct 2024 02:19:57 GMT https://braedenanderson.com/insights/sec-charges-three-so-called-market-makers-and-nine-individuals-in-crypto-crackdown https://braedenanderson.com/insights/sec-charges-three-so-called-market-makers-and-nine-individuals-in-crypto-crackdown In a decisive move against market manipulation in the digital asset space, the Securities and Exchange Commission (SEC) recently announced fraud charges against three entities claiming to be market makers, as well as nine individuals. The charges stem from alleged schemes designed to create a false impression of active trading for various crypto assets offered and sold as securities to retail investors. Fri, 11 Oct 2024 02:04:41 GMT https://braedenanderson.com/insights/pharmaceutical-executive-pleads-guilty-to-insider-trading-charges https://braedenanderson.com/insights/pharmaceutical-executive-pleads-guilty-to-insider-trading-charges A former executive of a global pharmaceutical company pleaded guilty today in a Boston federal court to insider trading, admitting to earning more than $250,000 through unlawful trading activities based on confidential information. Thu, 10 Oct 2024 12:30:00 GMT https://braedenanderson.com/insights/new-cpa-paths-emerge-as-states-try-to-stem-accountant-shortage https://braedenanderson.com/insights/new-cpa-paths-emerge-as-states-try-to-stem-accountant-shortage The accounting industry is grappling with a growing workforce shortage, prompting states and professional organizations to rethink traditional pathways to becoming a Certified Public Accountant (CPA). In an effort to attract more candidates to the profession, several states are considering allowing aspiring accountants to bypass a fifth year of education—a long-standing requirement that many see as a significant barrier to entry. Thu, 10 Oct 2024 11:00:00 GMT https://braedenanderson.com/insights/ftx-bankruptcy-judge-approves-14-billion-payback-plan-for-creditors https://braedenanderson.com/insights/ftx-bankruptcy-judge-approves-14-billion-payback-plan-for-creditors In a significant development for the crypto industry, a Delaware bankruptcy court has approved a plan for FTX to return more than $14 billion worth of assets to its creditors. The embattled cryptocurrency exchange, which filed for bankruptcy protection in November 2022, previously estimated that it owed creditors around $11.2 billion. Wed, 09 Oct 2024 18:23:18 GMT https://braedenanderson.com/insights/legal-implications-of-sec-jurisdiction-over-secondary-market-sales-of-network-tokens https://braedenanderson.com/insights/legal-implications-of-sec-jurisdiction-over-secondary-market-sales-of-network-tokens The ongoing dispute between Foris DAX Inc. (" Crypto.com ") and the Securities and Exchange Commission (SEC) represents a pivotal moment in the regulatory landscape for digital assets. Crypto.com is challenging the SEC's assertion of jurisdiction over secondary-market sales of various network tokens, which are typically used to access or interact with blockchain networks. Wed, 09 Oct 2024 18:15:07 GMT https://braedenanderson.com/insights/sec-adopts-rules-modifying-minimum-pricing-increments-access-fee-caps-and-order-transparency https://braedenanderson.com/insights/sec-adopts-rules-modifying-minimum-pricing-increments-access-fee-caps-and-order-transparency On September 18, 2024, the SEC unanimously adopted new rules modifying key aspects of the National Market System (NMS). These amendments affect minimum pricing increments, access fee caps, and order transparency for NMS stocks. The changes, effective in 2025 and 2026, aim to reduce trading costs, enhance market transparency, and better align pricing structures across different stock categories. Notably, the updates will influence trading strategies, compliance measures, and market behaviors, potentially triggering challenges from stock exchanges and other market participants. Tue, 08 Oct 2024 11:00:00 GMT https://braedenanderson.com/insights/october-2024-regulatory-update-and-sec-actions https://braedenanderson.com/insights/october-2024-regulatory-update-and-sec-actions This update delves into recent shifts at the SEC, including leadership changes, policy updates, and enforcement actions that highlight the agency’s ongoing focus on compliance and investor protection. Keith Cassidy has taken over as Acting Director of the Division of Examinations, while Gurbir S. Grewal, Director of the Enforcement Division, has announced his departure. Tue, 08 Oct 2024 02:23:19 GMT https://braedenanderson.com/insights/securities-enforcement-forum-central-2024-recap-sec-enforcement-trends-and-strategic-priorities https://braedenanderson.com/insights/securities-enforcement-forum-central-2024-recap-sec-enforcement-trends-and-strategic-priorities The Securities Enforcement Forum Central 2024 delivered high-impact discussions on the future of SEC enforcement. With hundreds of top industry professionals gathered at the Ritz-Carlton Chicago, attendees gained exclusive insights into the SEC’s evolving priorities and key challenges—just days before the agency’s fiscal year-end. Highlights included a keynote with the SEC’s Chicago Regional Director, Tina Diamantopoulos, and panels featuring current and former senior SEC officials. Topics ranged from the implications of SEC v. Jarkesy and increased scrutiny on crypto assets, to insider trading strategies and cooperation credit standards. Tue, 08 Oct 2024 02:08:54 GMT https://braedenanderson.com/insights/avoiding-fundraising-pitfalls-a-securities-lawyers-guide-for-startups-raising-capital https://braedenanderson.com/insights/avoiding-fundraising-pitfalls-a-securities-lawyers-guide-for-startups-raising-capital For many entrepreneurs, raising capital is a necessary step toward building and scaling a successful business. However, raising capital isn’t just about convincing investors of your company’s potential—it’s also about navigating a complex web of federal and state securities laws. Failing to adhere to these regulations can result in serious consequences, ranging from penalties and rescission rights for investors to long-term barriers that impede your ability to raise funds down the road. Fri, 04 Oct 2024 10:30:00 GMT https://braedenanderson.com/insights/interagency-statement-on-supervisory-practices-for-financial-institutions-affected-by-hurricane-helene https://braedenanderson.com/insights/interagency-statement-on-supervisory-practices-for-financial-institutions-affected-by-hurricane-helene In light of the widespread damage and disruptions caused by Hurricane Helene, the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board (FRB), the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC), and state financial regulators have issued an interagency statement to provide regulatory guidance and relief to financial institutions operating in the impacted regions. Fri, 04 Oct 2024 09:00:00 GMT https://braedenanderson.com/insights/doj-takes-aim-at-visas-dominance-in-debit-card-market-antitrust-lawsuit-alleges-anti-competitive-tactics https://braedenanderson.com/insights/doj-takes-aim-at-visas-dominance-in-debit-card-market-antitrust-lawsuit-alleges-anti-competitive-tactics The U.S. Department of Justice has launched an antitrust lawsuit against Visa, accusing the payments giant of exploiting its dominance in the debit card market to stifle competition and impose exorbitant fees on consumers and businesses. The suit, filed in the U.S. District Court for the Southern District of New York, claims that Visa uses its market power to pressure merchants, banks, and financial institutions into using its proprietary payment processing network, resulting in billions of dollars in fees that are ultimately passed on to consumers. Thu, 03 Oct 2024 12:00:00 GMT https://braedenanderson.com/insights/from-likes-to-lawsuits-finra-flags-compliance-pitfalls-in-influencer-marketing-and-crypto-promotions https://braedenanderson.com/insights/from-likes-to-lawsuits-finra-flags-compliance-pitfalls-in-influencer-marketing-and-crypto-promotions With social media influencers dominating the advertising space and crypto assets all the rage, it's no surprise that financial firms are exploring new ways to reach clients and promote products. However, the recent insights from FINRA’s Advertising Regulatory Conference highlight a cautionary tale for firms rushing to leverage these trendy marketing tactics: proceed with caution, and bring your compliance team along for the ride. Thu, 03 Oct 2024 09:30:00 GMT https://braedenanderson.com/insights/sec-announces-departure-of-enforcement-director-gurbir-s-grewal-sanjay-wadhwa-named-acting-director-sam-waldon-named-acting-deputy-director https://braedenanderson.com/insights/sec-announces-departure-of-enforcement-director-gurbir-s-grewal-sanjay-wadhwa-named-acting-director-sam-waldon-named-acting-deputy-director On October 2, 2024, the Securities and Exchange Commission (SEC) announced the departure of Gurbir S. Grewal, Director of the Division of Enforcement, effective October 11, 2024. Following his departure, Sanjay Wadhwa, the current Deputy Director of the Division, will step into the role of Acting Director. Meanwhile, Sam Waldon, Chief Counsel of the Division, will assume the position of Acting Deputy Director. Thu, 03 Oct 2024 00:16:19 GMT https://braedenanderson.com/insights/key-takeaways-from-sec-fraud-charges-against-the-kubient-officers https://braedenanderson.com/insights/key-takeaways-from-sec-fraud-charges-against-the-kubient-officers In early October, the Securities and Exchange Commission (SEC) filed accounting fraud charges in the U.S. District Court for the Southern District of New York against the CEO, CFO, and Audit Committee Chair of Kubient, Inc. Kubient, a technology company that claims to employ artificial intelligence to detect fraud in digital advertising, is now at the center of an enforcement action highlighting serious governance failures at the highest levels of management. Thu, 03 Oct 2024 00:10:46 GMT https://braedenanderson.com/insights/sec-charges-accountant-olayinka-oyebola-and-his-firm-with-aiding-and-abetting-massive-fraud https://braedenanderson.com/insights/sec-charges-accountant-olayinka-oyebola-and-his-firm-with-aiding-and-abetting-massive-fraud The Securities and Exchange Commission (SEC) has taken significant enforcement action against Olayinka Oyebola and his accounting firm, Olayinka Oyebola & Co. (Chartered Accountants), alleging their role in a sprawling securities fraud orchestrated by Mmobuosi Odogwu Banye, a businessman with an ambitious—and, it turns out, fictitious—empire of U.S.-based companies. Tue, 01 Oct 2024 16:42:08 GMT https://braedenanderson.com/insights/sec-charges-keurig-over-misleading-recyclability-claims-of-k-cup-pods https://braedenanderson.com/insights/sec-charges-keurig-over-misleading-recyclability-claims-of-k-cup-pods On September 10, 2024, the SEC charged Keurig Dr Pepper Inc. (Keurig) with making misleading statements regarding the recyclability of its widely used K-Cup coffee pods. The action is part of the SEC’s ongoing initiative to combat “greenwashing”—the practice of making exaggerated or unsubstantiated claims about a company’s environmental practices or products. Tue, 01 Oct 2024 04:38:03 GMT https://braedenanderson.com/insights/sec-enforcement-sweep-targets-companies-and-insiders-for-late-filings-under-section-16-and-13d-g-and-f https://braedenanderson.com/insights/sec-enforcement-sweep-targets-companies-and-insiders-for-late-filings-under-section-16-and-13d-g-and-f The SEC’s fiscal year is winding down, and once again, we are seeing what is becoming a predictable, if not formalized, year-end tradition: a broad Enforcement sweep targeting companies and insiders for failing to meet timely filing requirements under Sections 16(a), 13(d), 13(g), and 13(f) of the Exchange Act. This year, 23 respondents—both corporate entities and individuals—were charged for violations stemming from late short-swing trading reports (Forms 3, 4, and 5) and beneficial ownership reports (Schedules 13D and G). Penalties ranged from $10,000 to $750,000, totaling more than $3.8 million. The SEC’s use of data analytics to identify these reporting failures continues to demonstrate the agency’s commitment to leveraging technology to enforce even technical compliance obligations. Tue, 01 Oct 2024 04:24:44 GMT https://braedenanderson.com/insights/new-fincen-aml-rule-brings-heightened-scrutiny-to-registered-and-exempt-reporting-investment-advisers https://braedenanderson.com/insights/new-fincen-aml-rule-brings-heightened-scrutiny-to-registered-and-exempt-reporting-investment-advisers On August 28, 2024, the Financial Crimes Enforcement Network (FinCEN) finalized a rule that imposes new Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) program requirements on registered investment advisers (RIAs) and exempt reporting advisers (ERAs). For the first time, these advisers will be formally recognized as “financial institutions” under the Bank Secrecy Act (BSA), and thus subject to its AML/CFT regulations. The new rule will go into effect on January 1, 2026, signaling a significant shift for both RIAs and ERAs, who will need to implement comprehensive compliance programs to meet these requirements. Fri, 27 Sep 2024 10:30:00 GMT https://braedenanderson.com/insights/sec-updates-dollar-threshold-for-qualifying-venture-capital-funds-what-it-means-for-the-industry https://braedenanderson.com/insights/sec-updates-dollar-threshold-for-qualifying-venture-capital-funds-what-it-means-for-the-industry On August 22, 2024, the Securities and Exchange Commission (SEC) adopted a new rule that updates the dollar threshold for a fund to be considered a "qualifying venture capital fund" under the Investment Company Act of 1940. The rule raises the threshold from $10 million to $12 million in aggregate capital contributions and uncalled committed capital, reflecting inflation adjustments mandated by the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018. Thu, 26 Sep 2024 12:00:00 GMT https://braedenanderson.com/insights/the-aftermath-of-pfars-demise-navigating-private-equity-compliance-in-a-new-regulatory-landscape https://braedenanderson.com/insights/the-aftermath-of-pfars-demise-navigating-private-equity-compliance-in-a-new-regulatory-landscape The recent vacating of the Securities and Exchange Commission’s (SEC) Private Fund Adviser Rules (PFAR) by the Fifth Circuit Court has sent ripples through the private equity (PE) industry. What was initially viewed as a burdensome regulatory overhaul for PE firms is now seen as a moment of reprieve, but also a pivotal point that raises larger questions about the future of SEC oversight. While many private equity firms are breathing a sigh of relief, this regulatory pause is unlikely to signal the end of increased scrutiny from the SEC. In fact, firms may need to prepare for a more nuanced and evolving approach to compliance in the wake of PFAR’s collapse. Wed, 25 Sep 2024 12:00:00 GMT https://braedenanderson.com/insights/navigating-the-secs-regulatory-maze-the-challenge-for-digital-assets https://braedenanderson.com/insights/navigating-the-secs-regulatory-maze-the-challenge-for-digital-assets Under the leadership of Chairman Gary Gensler, the Securities and Exchange Commission (SEC) has adopted an approach to digital assets that some have described as "enforce first, make rules never." This strategy, while potentially effective in areas where clear guidance exists, has left digital asset market participants in the United States facing significant regulatory uncertainty. Without clear rules, the SEC’s aggressive enforcement tactics have had the effect of stifling innovation and driving businesses overseas. This article explores the key issues in the SEC’s current stance on digital assets and the need for a more thoughtful and predictable regulatory framework. Tue, 24 Sep 2024 13:30:00 GMT https://braedenanderson.com/insights/elizabeth-warren-questions-finras-enforcement-decline-key-considerations-for-companies https://braedenanderson.com/insights/elizabeth-warren-questions-finras-enforcement-decline-key-considerations-for-companies On August 29, 2024, Senator Elizabeth Warren raised concerns regarding a sharp decline in enforcement actions by the Financial Industry Regulatory Authority (FINRA). In a letter to FINRA CEO Robert Cook, Warren questioned whether this drop reflects a deliberate shift in regulatory strategy. The number of enforcement actions last year was the lowest since FINRA’s inception in 2007, and fines have similarly decreased. Warren’s inquiry highlights potential implications for both FINRA’s oversight and the broader regulatory landscape. Mon, 23 Sep 2024 13:00:00 GMT https://braedenanderson.com/insights/navigating-the-complexities-of-rule-13f-2-compliance-preparing-for-new-data-management-challenges https://braedenanderson.com/insights/navigating-the-complexities-of-rule-13f-2-compliance-preparing-for-new-data-management-challenges As the clock ticks down toward the January 2025 compliance deadline for SEC Rule 13f-2, institutional investment managers face an unprecedented regulatory challenge. This new rule, aimed at increasing transparency around short-selling activities, represents a significant shift from existing reporting frameworks, leaving firms grappling with how to overhaul their data management and reporting systems. Mon, 23 Sep 2024 11:30:00 GMT https://braedenanderson.com/insights/strengthening-whistleblower-protections-sec-enforcement-and-key-actions-for-companies https://braedenanderson.com/insights/strengthening-whistleblower-protections-sec-enforcement-and-key-actions-for-companies On September 9, 2024, the U.S. Securities and Exchange Commission (SEC) announced settlements with seven public companies for violations of whistleblower protections under Rule 21F-17 of the Securities Exchange Act of 1934. This latest enforcement action underscores the SEC's growing commitment to ensuring whistleblowers can report potential securities violations without fear of retaliation or obstruction. Companies are now called to reassess their policies to comply with these important protections. Sun, 22 Sep 2024 23:11:19 GMT https://braedenanderson.com/insights/secs-push-for-sanctions-against-elon-musk-implications-for-corporate-governance https://braedenanderson.com/insights/secs-push-for-sanctions-against-elon-musk-implications-for-corporate-governance On September 20, 2024, the U.S. Securities and Exchange Commission (SEC) announced its intention to seek sanctions against Elon Musk, the CEO of Tesla and SpaceX and owner of X (formerly Twitter). This move comes in light of Musk’s failure to comply with a court order to testify regarding his $44 billion acquisition of Twitter. The implications of this case extend beyond Musk himself, raising significant questions about corporate governance, transparency, and the responsibilities of high-profile executives. Sun, 22 Sep 2024 22:58:27 GMT https://braedenanderson.com/insights/equity-crowdfunding-a-comparison-of-reg-a-reg-cf-and-reg-d https://braedenanderson.com/insights/equity-crowdfunding-a-comparison-of-reg-a-reg-cf-and-reg-d In the ever-evolving landscape of modern capital formation, the avenues available to entrepreneurs are both myriad and complex. Navigating the regulatory intricacies of Regulation A (Reg A), Regulation Crowdfunding (Reg CF), and Regulation D (Reg D) transcends mere compliance; it is a strategic imperative that can profoundly shape the trajectory of a business. Each regulatory framework not only delineates specific parameters regarding investor eligibility and funding caps but also carries distinct implications for ongoing disclosure and market engagement. Fri, 20 Sep 2024 05:24:34 GMT https://braedenanderson.com/insights/broker-dealers-vs-unregistered-finders-in-capital-raising https://braedenanderson.com/insights/broker-dealers-vs-unregistered-finders-in-capital-raising Determining whether an intermediary operates as a finder or an unregistered broker-dealer is a nuanced and fact-specific inquiry that can present significant challenges. For unwary entrepreneurs, corporate executives, and equity fund sponsors, the stakes are high; engaging a third party that inadvertently crosses the line into broker-dealer territory can result in serious regulatory repercussions. Fri, 20 Sep 2024 05:07:30 GMT https://braedenanderson.com/insights/sec-adopts-amendments-to-regulation-nms-new-minimum-pricing-increments-reduced-access-fee-caps-and-enhanced-order-transparency https://braedenanderson.com/insights/sec-adopts-amendments-to-regulation-nms-new-minimum-pricing-increments-reduced-access-fee-caps-and-enhanced-order-transparency On September 18, 2024, the U.S. Securities and Exchange Commission (SEC) announced significant amendments to Regulation NMS (National Market System) aimed at improving market quality, reducing transaction costs, and enhancing transparency in equity markets. These changes, which address minimum pricing increments (tick sizes), access fee caps, and the visibility of better-priced orders, mark a major shift in the regulatory landscape designed to foster competition and protect investors. Wed, 18 Sep 2024 17:25:04 GMT https://braedenanderson.com/insights/sec-shifts-focus-climate-and-esg-enforcement-task-force-disbanded https://braedenanderson.com/insights/sec-shifts-focus-climate-and-esg-enforcement-task-force-disbanded The Securities and Exchange Commission (SEC) recently dissolved its Climate and ESG Enforcement Task Force, signaling a notable shift in the Commission's regulatory focus. Formed in 2021 under Acting Chair Allison Herren Lee, the Task Force played a central role in SEC Chair Gary Gensler’s push to enhance the availability of environmental, social, and governance (ESG) data for investors. However, after facing significant industry resistance and legal challenges, the SEC has decided to wind down the Task Force, though several key ESG and climate-related rules remain in development. Tue, 17 Sep 2024 04:44:30 GMT https://braedenanderson.com/insights/preparing-for-2025-key-esg-trends-and-regulatory-updates-for-in-house-counsel https://braedenanderson.com/insights/preparing-for-2025-key-esg-trends-and-regulatory-updates-for-in-house-counsel As we move towards 2025, ESG (Environmental, Social, and Governance) issues continue to evolve, driven by new regulatory frameworks, increasing litigation, and heightened scrutiny from investors and stakeholders. For in-house counsel, staying ahead of these developments is critical, as 2025 promises to bring new challenges and opportunities. This article outlines the key ESG trends and regulatory updates that legal departments should be preparing for as we head into the new year. Mon, 16 Sep 2024 16:59:40 GMT https://braedenanderson.com/insights/sec-targets-misleading-ai-claims-enforcement-actions-and-key-takeaways https://braedenanderson.com/insights/sec-targets-misleading-ai-claims-enforcement-actions-and-key-takeaways Explore the SEC's recent enforcement actions targeting "AI washing"—the practice of overstating or misrepresenting the use of artificial intelligence. Learn about key cases, regulatory risks, and compliance strategies for firms leveraging AI technology. Mon, 16 Sep 2024 15:37:46 GMT https://braedenanderson.com/insights/financial-services-banking https://braedenanderson.com/insights/financial-services-banking Financial Services & Banking Law At Anderson P.C. , we provide comprehensive legal counsel to financial institutions, banks, investment advisers, funds, broker-dealers, and other market participants navigating today’s complex regulatory environment. Our firm helps clients reduce regulatory risk thr Sat, 14 Sep 2024 19:05:17 GMT https://braedenanderson.com/insights/securities-enforcement https://braedenanderson.com/insights/securities-enforcement Securities Enforcement Defense At Anderson P.C. , led by Principal Attorney Braeden Anderson , we offer unparalleled representation in high-stakes securities enforcement matters. Braeden personally defends clients facing investigations initiated by the U.S. Securities and Exchange Commission (SEC) Sat, 14 Sep 2024 19:00:32 GMT https://braedenanderson.com/insights/crypto https://braedenanderson.com/insights/crypto Blockchain and Digital Assets At Anderson P.C. , we understand the fast-paced and ever-changing nature of the blockchain and digital assets industry. Led by Principal Attorney Braeden Anderson , our firm provides tailored legal services to corporations, startups, and individuals navigating the comp Sat, 14 Sep 2024 18:59:01 GMT https://braedenanderson.com/insights/regulatory-counseling https://braedenanderson.com/insights/regulatory-counseling Regulatory Counseling At Anderson P.C. , we provide comprehensive regulatory counseling for public companies, financial institutions, broker-dealers, investment advisers, other market participants. Led by Principal Attorney Braeden Anderson , our firm offers strategic guidance across a wide array o Sat, 14 Sep 2024 18:57:52 GMT https://braedenanderson.com/insights/internal-investigations https://braedenanderson.com/insights/internal-investigations Independent and Internal Investigations At Anderson P.C. , we are known for our swift, thorough, and discreet handling of internal and independent investigations . Led by Braeden Anderson , our firm specializes in navigating the most complex corporate issues, including executive-level misconduct, c Sat, 14 Sep 2024 18:56:55 GMT https://braedenanderson.com/insights/government-investigations-white-collar-litigation https://braedenanderson.com/insights/government-investigations-white-collar-litigation Government Investigations & White-Collar Litigation When a government agency initiates an investigation, the stakes are high, and navigating these inquiries with precision and expertise is critical to protecting a company’s business and reputation. At Anderson P.C. , we provide strategic counsel to Sat, 14 Sep 2024 18:55:12 GMT https://braedenanderson.com/insights/sec-amends-binance-complaint-amid-industry-criticism-over-token-classification https://braedenanderson.com/insights/sec-amends-binance-complaint-amid-industry-criticism-over-token-classification In a recent development, the U.S. Securities and Exchange Commission (SEC) amended its complaint in the ongoing case against Binance, one of the world’s largest cryptocurrency exchanges. The SEC acknowledged that it may have caused confusion regarding its stance on whether certain digital tokens should be classified as securities. This amended filing, submitted in the District of Columbia, includes procedural adjustments and legal clarifications, reflecting an evolving enforcement strategy as the SEC seeks to address the regulatory challenges posed by digital assets. Sat, 14 Sep 2024 17:11:50 GMT https://braedenanderson.com/insights/fifth-circuits-decision-in-jarkesy-v-sec-and-its-implications-for-sec-enforcement https://braedenanderson.com/insights/fifth-circuits-decision-in-jarkesy-v-sec-and-its-implications-for-sec-enforcement The Jarkesy ruling has considerable consequences for the SEC’s enforcement program. For years, the SEC has utilized its administrative forum to pursue civil penalties for securities fraud, with the flexibility to adjudicate matters in-house. However, the Supreme Court's decision effectively eliminates this option for cases seeking civil penalties. As a result, the SEC will likely need to shift more cases to federal court, where defendants are entitled to a jury trial. This shift could increase the complexity, time, and costs associated with SEC enforcement actions. Fri, 13 Sep 2024 16:52:29 GMT https://braedenanderson.com/insights/broker-dealer-fined-3m-for-trading-supervision-failures https://braedenanderson.com/insights/broker-dealer-fined-3m-for-trading-supervision-failures In a recent settlement with FINRA, a major broker-dealer agreed to pay over $3 million in monetary sanctions due to supervisory failures related to short-term trading recommendations. These trading activities, which spanned a two-year period from January 2017 to December 2018, resulted in client losses while generating significant profits for the firm. Thu, 12 Sep 2024 21:40:57 GMT https://braedenanderson.com/insights/sec-charges-former-executives-of-medly-health-inc-with-investor-fraud https://braedenanderson.com/insights/sec-charges-former-executives-of-medly-health-inc-with-investor-fraud The Securities and Exchange Commission (SEC) recently charged three former executives of the now-defunct digital pharmacy startup Medly Health Inc. with defrauding investors in a scheme that raised over $170 million. The charges underscore the SEC’s continued focus on corporate malfeasance, particularly within startups seeking capital from investors. Thu, 12 Sep 2024 21:18:52 GMT https://braedenanderson.com/insights/navigating-finras-new-residential-supervisory-location-rsl-rule-key-insights-for-firms https://braedenanderson.com/insights/navigating-finras-new-residential-supervisory-location-rsl-rule-key-insights-for-firms In response to the growing trend of remote work since the COVID-19 pandemic, FINRA has introduced a new rule under its supervision framework, allowing firms to designate private residences as Residential Supervisory Locations (RSLs). This significant development provides firms with an opportunity to adapt their supervisory practices to a more flexible work environment while ensuring compliance with FINRA’s stringent supervision requirements. Effective June 1, 2024, FINRA Rule 3110.19 enables firms to treat certain residential locations as non-branch locations, offering relief from the annual inspection requirements that apply to branch offices and Offices of Supervisory Jurisdiction (OSJs). Tue, 10 Sep 2024 15:32:21 GMT https://braedenanderson.com/insights/sec-enforcement-on-marketing-rule-violations-rias-to-pay-12m-in-fines https://braedenanderson.com/insights/sec-enforcement-on-marketing-rule-violations-rias-to-pay-12m-in-fines The SEC continues to flex its regulatory muscle over Registered Investment Advisors (RIAs) in its latest enforcement action targeting violations of the 2021 marketing rule. Nine RIAs have agreed to pay more than $1.2 million in collective fines for misleading advertising practices. The firms include prominent names like Integrated Advisors Network, Richard Bernstein Advisors, and Abacus Planning Group, each paying six-figure fines to settle charges brought by the commission. Tue, 10 Sep 2024 15:09:43 GMT https://braedenanderson.com/insights/key-drivers-behind-state-securities-enforcement-actions https://braedenanderson.com/insights/key-drivers-behind-state-securities-enforcement-actions State regulators play a pivotal role in maintaining the integrity of the securities industry, particularly when it comes to protecting retail investors. While federal agencies like the SEC often garner more attention, state securities regulators serve as critical front-line enforcers of compliance and ethical standards within their jurisdictions. Through targeted enforcement actions and oversight, state regulators address misconduct that can often slip through the cracks at the national level, ensuring that investment advisors and firms adhere to both state and federal regulations. Tue, 10 Sep 2024 14:54:25 GMT https://braedenanderson.com/insights/massachusetts-investment-advisor-fined-for-undisclosed-wechat-communications https://braedenanderson.com/insights/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. Mon, 09 Sep 2024 19:54:49 GMT https://braedenanderson.com/insights/opinion-us-congress-must-establish-a-clear-regulatory-framework-for-crypto-assets-to-maintain-western-leadership-in-financial-innovation https://braedenanderson.com/insights/opinion-us-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. Mon, 09 Sep 2024 00:56:46 GMT https://braedenanderson.com/insights/recent-sec-enforcement-action-highlights-the-importance-of-robust-mnpi-policies-in-clo-trading https://braedenanderson.com/insights/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. Sun, 08 Sep 2024 08:00:00 GMT https://braedenanderson.com/insights/doj-and-sec-crack-down-on-market-manipulation-enforcement-actions-against-short-sellers-signal-increased-scrutiny https://braedenanderson.com/insights/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. Sat, 07 Sep 2024 17:00:06 GMT https://braedenanderson.com/insights/finra-prevails-in-brokers-post-jarkesy-challenge-to-disciplinary-hearing https://braedenanderson.com/insights/finra-prevails-in-brokers-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. Fri, 06 Sep 2024 14:05:22 GMT https://braedenanderson.com/insights/sec-fines-six-major-credit-rating-agencies-for-recordkeeping-failures-a-significant-regulatory-action https://braedenanderson.com/insights/sec-fines-six-major-credit-rating-agencies-for-recordkeeping-failures-a-significant-regulatory-action 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. Wed, 04 Sep 2024 15:55:45 GMT https://braedenanderson.com/insights/nvidia-faces-doj-antitrust-investigation-a-potential-turning-point-in-the-ai-industry https://braedenanderson.com/insights/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. Wed, 04 Sep 2024 15:36:33 GMT https://braedenanderson.com/insights/sec-targets-opensea-the-potential-implications-for-the-nft-market https://braedenanderson.com/insights/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. Sun, 01 Sep 2024 05:07:45 GMT https://braedenanderson.com/insights/finra-update-on-crypto-asset-activities https://braedenanderson.com/insights/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. Fri, 30 Aug 2024 15:23:11 GMT https://braedenanderson.com/insights/former-broker-fined-for-alleged-stock-hype-in-client-emails-a-cautionary-tale-for-advisors https://braedenanderson.com/insights/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. Thu, 29 Aug 2024 00:54:54 GMT https://braedenanderson.com/insights/court-denies-secs-request-for-disgorgement-in-ripple-case-implications-for-crypto-enforcement https://braedenanderson.com/insights/court-denies-secs-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. Wed, 28 Aug 2024 03:15:18 GMT https://braedenanderson.com/insights/sec-issues-24-million-in-whistleblower-awards-a-testament-to-the-power-of-insider-cooperation https://braedenanderson.com/insights/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. Mon, 26 Aug 2024 20:34:29 GMT https://braedenanderson.com/insights/sec-charges-abra-with-unregistered-offers-and-sales-of-crypto-asset-securities-a-regulatory-wake-up-call https://braedenanderson.com/insights/sec-charges-abra-with-unregistered-offers-and-sales-of-crypto-asset-securities-a-regulatory-wake-up-call 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. Mon, 26 Aug 2024 20:13:26 GMT https://braedenanderson.com/insights/national-futures-association-nfa-implements-new-member-reporting-requirements https://braedenanderson.com/insights/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). Mon, 26 Aug 2024 16:53:17 GMT https://braedenanderson.com/insights/top-10-sec-enforcement-developments-of-summer-2024 https://braedenanderson.com/insights/top-10-sec-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. Fri, 23 Aug 2024 04:39:41 GMT https://braedenanderson.com/insights/sec-targets-standalone-investment-adviser-in-groundbreaking-off-channel-communication-enforcement-action https://braedenanderson.com/insights/sec-targets-standalone-investment-adviser-in-groundbreaking-off-channel-communication-enforcement-action On April 3, 2024, the U.S. Securities and Exchange Commission (SEC) announced a landmark enforcement action against Senvest Management, LLC (Senvest), marking the first such action against a private fund adviser and a standalone investment adviser for failures related to off-channel communication recordkeeping. This case represents a significant development in the SEC’s ongoing enforcement efforts focused on recordkeeping failures in the financial industry. Sun, 18 Aug 2024 18:50:42 GMT https://braedenanderson.com/insights/navigating-new-risks-key-insights-from-finras-2024-regulatory-oversight-report https://braedenanderson.com/insights/navigating-new-risks-key-insights-from-finras-2024-regulatory-oversight-report The Financial Industry Regulatory Authority (FINRA) has recently issued its 2024 Annual Regulatory Oversight Report (the Report). This comprehensive 90-page document underscores evolving regulatory concerns and introduces several new areas of focus. Notably, the Report includes a dedicated section on cryptoasset developments and a detailed examination of market integrity topics, including the Securities and Exchange Commission (SEC) Market Access Rule. Sun, 18 Aug 2024 18:42:15 GMT https://braedenanderson.com/insights/finra-proposes-rules-to-implement-new-securities-lending-and-transparency-engine-slate https://braedenanderson.com/insights/finra-proposes-rules-to-implement-new-securities-lending-and-transparency-engine-slate On May 1, 2024, the Financial Industry Regulatory Authority (FINRA) proposed a new Rule 6500 Series to implement its Securities Lending and Transparency Engine (SLATE™). The new rule series is mandated by Rule 10c-1a under the Securities Exchange Act of 1934 (Exchange Act), which was adopted by the U.S. Securities and Exchange Commission (SEC) on October 13, 2023. Sun, 18 Aug 2024 18:21:18 GMT https://braedenanderson.com/insights/doj-announces-new-pilot-program-for-voluntary-self-disclosures-what-you-need-to-know https://braedenanderson.com/insights/doj-announces-new-pilot-program-for-voluntary-self-disclosures-what-you-need-to-know The Department of Justice (DOJ) has introduced a new pilot program aimed at incentivizing individuals involved in corporate wrongdoing to voluntarily disclose information. This initiative, highlighted by Principal Deputy Assistant Attorney General Nicole M. Argentieri, underscores the DOJ’s commitment to enhancing accountability and uncovering hidden corporate misconduct. Sun, 18 Aug 2024 17:22:09 GMT https://braedenanderson.com/insights/california-law-firm-settles-false-claims-act-allegations-over-misuse-of-ppp-loan-funds https://braedenanderson.com/insights/california-law-firm-settles-false-claims-act-allegations-over-misuse-of-ppp-loan-funds On August 15, 2024, a California-based law firm, along with senior managers, agreed to a settlement totaling $274,000 to resolve allegations of False Claims Act violations related to the misuse of Paycheck Protection Program (PPP) loan funds. Sun, 18 Aug 2024 17:12:03 GMT https://braedenanderson.com/insights/2igydhvkj49ejmtvr004x55j2yasba https://braedenanderson.com/insights/2igydhvkj49ejmtvr004x55j2yasba On August 1, 2024, Principal Deputy Assistant Attorney General Nicole M. Argentieri unveiled a significant new initiative: the Corporate Whistleblower Awards Pilot Program . This program represents a strategic enhancement to the Department of Justice’s (DOJ) enforcement capabilities and aims to fortify corporate accountability across multiple sectors. Sun, 18 Aug 2024 17:05:27 GMT https://braedenanderson.com/insights/activist-short-seller-indicted-for-16m-market-manipulation-scheme https://braedenanderson.com/insights/activist-short-seller-indicted-for-16m-market-manipulation-scheme On July 26, 2024, a federal grand jury in the Central District of California returned an indictment charging Andrew Left, a well-known activist short seller, with multiple counts of securities fraud. The indictment alleges that Left orchestrated a sophisticated market manipulation scheme that generated at least $16 million in illicit profits. Sun, 18 Aug 2024 17:01:33 GMT https://braedenanderson.com/insights/advancing-financial-data-transparency-new-joint-standards-proposed-by-financial-regulators https://braedenanderson.com/insights/advancing-financial-data-transparency-new-joint-standards-proposed-by-financial-regulators On August 2, 2024, Chair Gary Gensler announced a groundbreaking proposal aimed at enhancing the transparency and accessibility of financial data. This proposal, born from the Financial Data Transparency Act of 2022 (FDTA) , represents a significant step toward standardizing financial data reporting across multiple regulatory agencies. The initiative involves nine financial regulators and is poised to streamline data collection and improve oversight efficiency. Sun, 18 Aug 2024 16:11:24 GMT https://braedenanderson.com/insights/enhancing-financial-reporting-insights-from-the-updated-conceptual-framework-in-fasb-standard-setting https://braedenanderson.com/insights/enhancing-financial-reporting-insights-from-the-updated-conceptual-framework-in-fasb-standard-setting On August 12, 2024, Paul Munter, the Chief Accountant at the SEC, released a statement emphasizing the significance of the recently updated Conceptual Framework for Financial Reporting issued by the Financial Accounting Standards Board (FASB). This comprehensive update, culminating with the issuance of Chapter 6, Measurement, of Concepts Statement No. 8, marks a pivotal moment in accounting standards development. As the FASB integrates these updates into its standard-setting activities, it's crucial for stakeholders to understand how these changes will shape the future of financial reporting and investor protection. Sun, 18 Aug 2024 16:07:16 GMT https://braedenanderson.com/insights/understanding-conflicts-of-interest-in-artificial-intelligence-video-from-sec-chair-gary-gensler https://braedenanderson.com/insights/understanding-conflicts-of-interest-in-artificial-intelligence-video-from-sec-chair-gary-gensler On August 13, 2024, SEC Chair Gary Gensler released a video discussing the growing role of artificial intelligence (AI) in finance, particularly how it can introduce conflicts of interest that may impact investors. As AI becomes more integrated into financial services—from robo-advisors to brokerage applications—the potential for these conflicts to influence investment decisions and outcomes increases. Sun, 18 Aug 2024 16:04:02 GMT https://braedenanderson.com/insights/2024-mid-year-review-sec-enforcement-regarding-crypto-assets https://braedenanderson.com/insights/2024-mid-year-review-sec-enforcement-regarding-crypto-assets The Securities and Exchange Commission (SEC) has been highly active in 2024, particularly in the enforcement of regulations within the crypto asset space. As the digital asset market continues to evolve, so too does the regulatory landscape. The SEC’s actions reflect its commitment to protecting investors and maintaining fair, orderly, and efficient markets, even in the rapidly changing world of cryptocurrencies. Sun, 18 Aug 2024 15:57:35 GMT https://braedenanderson.com/insights/navigating-the-sec-whistleblower-program-guidance-for-whistleblowers-and-companies-alike https://braedenanderson.com/insights/navigating-the-sec-whistleblower-program-guidance-for-whistleblowers-and-companies-alike The SEC’s Whistleblower Program , established under the Dodd-Frank Act, plays a pivotal role in uncovering and addressing violations of federal securities laws. While it provides significant incentives for individuals to report wrongdoing, it also poses substantial risks and challenges for companies whose employees may come forward as whistleblowers. Understanding the program's intricacies and how it impacts both whistleblowers and companies is crucial for navigating these situations effectively. Sun, 18 Aug 2024 15:46:13 GMT https://braedenanderson.com/insights/key-takeaways-from-sec-report-on-cyber-related-frauds-and-internal-accounting-controls https://braedenanderson.com/insights/key-takeaways-from-sec-report-on-cyber-related-frauds-and-internal-accounting-controls In today's rapidly evolving digital landscape, the threat of cyber-related fraud has become an ever-present concern for public companies. The SEC's 2018 report sheds light on this issue, focusing on the risks posed by cyber-related frauds that exploit vulnerabilities in internal controls. The report serves as both a cautionary tale and a guide for companies looking to strengthen their defenses against these sophisticated attacks. Sun, 18 Aug 2024 15:21:44 GMT https://braedenanderson.com/insights/sec-crackdown-on-texting-violations-asset-managers-and-rating-agencies-brace-for-next-round-of-fines https://braedenanderson.com/insights/sec-crackdown-on-texting-violations-asset-managers-and-rating-agencies-brace-for-next-round-of-fines The SEC’s relentless pursuit of record-keeping violations has reached new heights, as asset managers and rating agencies find themselves in the crosshairs of the regulator’s expanding probe into the use of personal devices for business communications. The investigation, which began in 2021 with a focus on investment bankers, has already resulted in over $2 billion in civil penalties from Wall Street firms. With recent settlements amounting to nearly $400 million from multiple firms, the SEC shows no signs of slowing down. Sun, 18 Aug 2024 15:12:39 GMT https://braedenanderson.com/insights/supreme-courts-landmark-ruling-in-sec-v-jarkesy-implications-for-sec-enforcement-and-administrative-adjudication https://braedenanderson.com/insights/supreme-courts-landmark-ruling-in-sec-v-jarkesy-implications-for-sec-enforcement-and-administrative-adjudication On June 27, 2024, the U.S. Supreme Court issued a groundbreaking opinion in SEC v. Jarkesy , which fundamentally alters the landscape of securities enforcement and administrative adjudication. The Court’s decision unequivocally declared unconstitutional the SEC’s use of its in-house administrative courts to levy civil penalties in securities fraud cases. This ruling not only challenges the SEC’s procedural practices but also raises profound questions about the authority of federal agencies to seek similar forms of administrative relief. Sat, 17 Aug 2024 05:18:34 GMT https://braedenanderson.com/insights/cybersecurity-alert-finra-update-on-crowdstrike-it-service-disruption https://braedenanderson.com/insights/cybersecurity-alert-finra-update-on-crowdstrike-it-service-disruption FINRA has issued a cybersecurity alert concerning a recent CrowdStrike service outage that has impacted Microsoft operating systems. This disruption, which began on July 19, 2024, is linked to a software update affecting CrowdStrike’s Falcon software. The Cyber and Analytics Unit (CAU) within FINRA’s Member Supervision program is actively monitoring the situation. Wed, 14 Aug 2024 13:51:35 GMT https://braedenanderson.com/insights/navigating-finras-updated-policy-on-recording-calls-and-meetings https://braedenanderson.com/insights/navigating-finras-updated-policy-on-recording-calls-and-meetings FINRA has issued Regulatory Notice 24-10, reminding members of its longstanding policy prohibiting the recording of conversations between FINRA staff and member firm personnel during oversight-related calls or meetings. This policy extends to both audio and video recordings and includes all related technologies. The Notice underscores the continued relevance of this policy amidst technological advancements that facilitate recording and transcription. Wed, 14 Aug 2024 13:39:16 GMT https://braedenanderson.com/insights/understanding-finras-membership-application-program-a-guide-to-joining-the-broker-dealer-industry https://braedenanderson.com/insights/understanding-finras-membership-application-program-a-guide-to-joining-the-broker-dealer-industry In the world of securities trading, the Financial Industry Regulatory Authority (FINRA) plays a crucial role in maintaining market integrity and protecting investors. One of the key components of this oversight is FINRA’s Membership Application Program (MAP). Here, we delve into what MAP entails, the process firms must go through to gain membership, and the role it plays in safeguarding the industry. Wed, 14 Aug 2024 13:35:56 GMT https://braedenanderson.com/insights/finra-provides-update-on-member-firms-crypto-asset-activities https://braedenanderson.com/insights/finra-provides-update-on-member-firms-crypto-asset-activities As part of its regulatory mandate to safeguard investors and uphold market integrity, FINRA is addressing the evolving landscape of crypto asset activities conducted by its member firms. Crypto assets—commonly referred to as digital assets—encompass a range of items issued or transferred using blockchain technology. These include virtual currencies, coins, and tokens, which may or may not qualify as “securities” under federal laws. Wed, 14 Aug 2024 13:21:57 GMT https://braedenanderson.com/insights/regulatory-notice-24-11-updated-interpretations-of-finras-margin-rule-what-you-need-to-know https://braedenanderson.com/insights/regulatory-notice-24-11-updated-interpretations-of-finras-margin-rule-what-you-need-to-know FINRA has announced an important update to the set of interpretations for its Margin Rule, FINRA Rule 4210. These updated interpretations, now effective, are available on the FINRA website. To help member firms navigate these changes, FINRA has also released a comprehensive guide. This guide includes a text comparison with the previous interpretations, published on October 27, 2021, and provides additional information about the updates. Wed, 14 Aug 2024 13:11:18 GMT https://braedenanderson.com/insights/anderson-insights-finras-landmark-action-on-social-media-influencer-programs https://braedenanderson.com/insights/anderson-insights-finras-landmark-action-on-social-media-influencer-programs In a significant development, FINRA has imposed an $850,000 fine on a financial services firm for violations related to its use of social media influencers. This marks the first enforcement action by FINRA concerning a firm's supervision of social media influencer activities. Wed, 14 Aug 2024 13:07:20 GMT https://braedenanderson.com/insights/blog-post-title-one-3zaa9-tp3la-spruu https://braedenanderson.com/insights/blog-post-title-one-3zaa9-tp3la-spruu It All Begins Here Tue, 28 May 2019 15:13:10 GMT https://braedenanderson.com/insights/blog-post-title-two-t5my5-l6axx-dkwbb https://braedenanderson.com/insights/blog-post-title-two-t5my5-l6axx-dkwbb It All Begins Here Tue, 28 May 2019 15:12:55 GMT https://braedenanderson.com/insights/blog-post-title-three-y3peb-cdl75-9iv9s https://braedenanderson.com/insights/blog-post-title-three-y3peb-cdl75-9iv9s It All Begins Here Tue, 28 May 2019 15:12:09 GMT https://braedenanderson.com/insights/blog-post-title-four-lr658-f6ehs-ltf4u https://braedenanderson.com/insights/blog-post-title-four-lr658-f6ehs-ltf4u It All Begins Here Tue, 28 May 2019 15:11:49 GMT