Daily Archives: August 30, 2023, 5:32 pm

DOJ, SEC Investigate Tesla Over Secret Glass House Project – WSJ

Manhattan federal prosecutors are investigating Tesla’s use of company funds on a secret project that had been described internally as a house for Chief Executive Elon Musk, people familiar with the matter said. The U.S. Attorney’s Office for the Southern District of New York has sought information about personal benefits paid to Musk, how much Tesla spent on the project—which…

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Grayscale Can Be a Bitcoin ETF – Bloomberg

One possible interpretation of this case is that the SEC’s decision to block spot Bitcoin ETFs was unusually egregious, and a court fixed that, and there are no broader implications for anything. And that’s possible, because the spot Bitcoin ETF decision really was weird. But another possible interpretation is that the modern SEC has become more aggressive about regulating the…

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SEC Defends Administrative Judges in Initial Supreme Court Brief

Administrative law judges should be able to adjudicate enforcement proceedings in which the government seeks civil penalties for securities violations, the Securities and Exchange Commission said in its opening brief before the US Supreme Court. The Fifth Circuit’s ruling against the use of ALJs rests on a misunderstanding of legislative power, and Congress didn’t violate the constitution by allowing the…

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SEC Charges Citigroup Global Markets Inc. with Recordkeeping Failures concerning Underwriting Expenses

The Securities and Exchange Commission today announced settled cease-and-desist proceedings against broker-dealer Citigroup Global Markets Inc. (CGMI) for willfully violating recordkeeping requirements concerning expenses that the firm incurred in connection with its underwriting business. Recordkeeping requirements of the federal securities laws require broker-dealers to make and keep current certain books and records, including ledgers or other records reflecting all assets…

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SEC Charges Archipelago Trading Services with Failing to File Suspicious Activity Reports

The Securities and Exchange Commission today announced charges against Archipelago Trading Services Inc. (ATSI) for failing to file hundreds of legally required reports of suspicious financial transactions, known as Suspicious Activity Reports (SARs), between August 2012 and September 2020. The charges were related to transactions in over-the-counter (OTC) securities executed on ATSI’s alternative trading system (ATS). ATSI, a Chicago-based broker-dealer,…

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Goldman Sachs to Pay $5.5 Million Over Audio Recording Failures During Pandemic – WSJ

Goldman Sachs agreed to pay about $5.5 million to settle allegations it failed to record and retain mobile device calls made by its traders at the onset of the Covid-19 pandemic, in violation of record-keeping rules and a previous settlement agreement. The civil fine, announced by the Commodity Futures Trading Commission on Tuesday, was the latest settlement against Goldman in…

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The SEC’s First NFT Enforcement Action: SEC v. Impact Theory | Akin Gump Strauss Hauer & Feld LLP

Takeaways — With the SEC engaged in high profile litigation across the country regarding the status of digital assets as securities, this case marks the first time the SEC has extended its jurisdictional reach further into the NFT space. This is not surprising, given remarks from Chair Gary Gensler last year, which indicated that the SEC’s broad reading of the…

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Grayscale’s Court Win Over SEC Lifts Hopes for Bitcoin ETF Approval – WSJ

A federal appeals court ruled Tuesday that the Securities and Exchange Commission must reconsider the crypto asset manager Grayscale Investments’ application to launch the first bitcoin exchange-traded fund, the latest setback for SEC Chair Gary Gensler’s efforts to regulate the upstart industry. *** “The denial of Grayscale’s proposal was arbitrary and capricious because the Commission failed to explain its different…

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