Daily Archives: February 27, 2023, 5:20 pm

Kraken Settles SEC Charge That Its SAAS Model Was an Illegal Securities Offering | Foley & Lardner LLP

In addition to recent settlements involving crypto asset lenders, the Kraken settlement is an example of the SEC pursuing enforcement actions against “centralized crypto companies” and claiming that existing securities laws apply to crypto-related financial products. Following the Kraken settlement, SEC Chair Gary Gensler gave an interview on CNBC in which he asserted that the settlement “should put everyone on…

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Sam Bankman-Fried Cosplayed as a Genius. The Facts Reveal His Incredible Stupidity

All of this implies two ways Bankman-Fried may have been thinking about his long-term game plan. He may have simply thought he could do nothing but win, and that all the money he was stealing would magically regenerate somehow through his deranged financial and influence-peddling machinations. This species of stupidity would have flowed from Bankman-Fried’s apparently incurable case of elite…

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Blackstone and BlackRock Are Among Managers in SEC Texting Sweep

Blackstone Inc. and BlackRock Inc. are among the money managers facing scrutiny in a US regulatory crackdown on Wall Streeters’ once-prolific use of unauthorized messaging platforms. Blackstone was contacted by the Securities and Exchange Commission in October for information on retention of electronic business communications and text messages, the firm said in a filing on Friday. BlackRock said in a…

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SEC’s ‘Hammer’ Approach to Custody Revamp Worries Money Managers

Were the rule adopted as proposed, money managers would have to re-evaluate many custodial agreements. Investment firms would also have to wrestle with additional complexities around whether their arrangements comply with the expanded rule—something that can already be a sensitive judgment call. “It’s not a simple matter of more paperwork,” Avellaneda said. As proposed, the rule could have a “hugely…

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Kodak – Bloomberg

In general, it is the position of this newsletter (though it is not legal advice) that: You should not do insider trading. If you must do insider trading, you should not text your accomplice about it. If you must do crimes and text your accomplices about them, you should not use cutesy codenames for your crimes. You should use boring codenames for…

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SEC’s Coinbase Insider Trading Case Is ‘Backdoor Rulemaking,’ Trade Association’s CEO Says

The Chamber of Digital Commerce is trying to stop a case brought by the U.S. Securities and Exchange Commission (SEC) against a former Coinbase (COIN) employee accused of insider trading. The organization’s founder, Perianne Boring, said if the SEC succeeds, many digital assets could be defined as securities. “We see this action as seriously concerning and would have significant ramifications…

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