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Category Archives: Regulation & Enforcement

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The Dawn of Crypto Regulation Standard

cryptocurrency dollar

On April 11, 2018, regulators, academics and market users gathered in Washington DC to discuss the issues, challenges and future of regulation for the digital asset space. Titled “Smart Financial Regulation Roundtable: Implications of Cryptocurrencies,” the program featured three separate sessions: The first session: The State of Play in Cryptocurrencies – What are cryptocurrencies and how are they being used and regulated? The second session: The Regulatory Response to Cryptocurrencies – What should regulators and policymakers do to help cryptocurrencies achieve their potential while minimizing risk? The final session: A Fireside Chat with CFTC Commissioner Rostin Behnam and Brian Knight,…

Lessons From the “Not Guilty” Verdict in This Week’s Criminal Spoofing Trial Standard

Wednesday’s stunning “not guilty” verdict in United States v. Andre Flotron, only the second spoofing case ever taken to trial, is a reminder that it is extremely difficult for prosecutors to prove a defendant’s intent beyond a reasonable doubt in the absence of direct evidence. We should expect the DOJ and CFTC to reevaluate their charging practices in the wake of this significant defense victory. The seeds of the “not guilty” verdict were sown when the DOJ drafted an initial indictment charging Flotron in the District of Connecticut with a single count of conspiring with others to “drive prices” up…

Tax Law Change Means All Cash Grain Traders Are Not Equal, Better Bids or No Standard

Grain market players who are not part of farmer-owned cooperatives are alarmed over the potential impact on grain market origination of the recent changes to the U.S. tax code. In what appears to be an unintended consequence of bad tax bill writing, cooperatives have been favored over other market players in the form of a tax benefit to farmers for selling their grain to cooperatives rather than to private grain companies. This change in the way physical grain moves through the system could make it more expensive for consumers, as cooperatives exercise what appears to be newly granted monopoly powers…

An Update on the Consolidated Audit Trail Standard

At STAC’s 92nd Annual Mid-Winter Meeting, JLN spoke with Shane Swanson, chief compliance officer with Thesys CAT LLC, about the state of the Consolidated Audit Trail (CAT). The CAT will be a large trade data repository for options and equities used for surveillance and tracking. Thesys CAT is the recently formed subsidiary of Thesys Technologies tasked with developing the CAT. The plan was intended to go live in November 2017, but as the date neared, the SROs put in a one year exemptive request. While the SEC has not granted the request, it did agree to work toward a new…

Don’t Get the Munchees! A Lesson from the SEC Standard

The Securities & Exchange Commission (“SEC” or the “Commission”) has made good on its promise to pursue companies that engage in what it views as unregulated offerings of securities by way of initial coin offerings or “ICOs.” Specifically, the Commission recently pursued a company called “Munchee” that created an iPhone application for people to review restaurant meals. To fund the creation of its app, Munchee began an ICO seeking to raise $15 million and, in return, issue its token known as a “MUN.”  The company issued a white paper in connection with its ICO. In that document, Munchee indicated that…

Asia Pacific Financial News from John Lothian News – December 21, 2017 Standard

Lead Stories China to Shake Up Global Market With Yuan-Based Oil Futures Contract; Chinese traders, analysts expect start by early 2018 By Georgi Kantchev – WSJ China is preparing to launch its own yuan-based oil futures contract, a move set to shake up the 96 million barrel-per-day global crude market currently dominated by trading in London and New York. https://goo.gl/FMoxQ4 Cameron sold out more than China Bruno Maçães – The Royal Gazette When it was announced earlier this week that former British Prime Minister David Cameron had accepted a leadership role in a new $1 billion UK investment fund intended…

Asia Pacific Financial News from John Lothian News – December 19, 2017 Standard

Lead Stories South Korean cryptocurrency exchange to file for bankruptcy after hacking Reuters Staff A South Korean cryptocurrency exchange said on Tuesday it is shutting down and is filing for bankruptcy after it was hacked for the second time this year, highlighting concerns about security as trade in bitcoin and other virtual currencies boom. https://goo.gl/mmcpy4 China issues new code of conduct to tame overseas investors; New guidelines set out 36 dos and don’ts to bring order to booming sector Frank Tang – South China Morning Post Beijing has imposed a 36-point code of conduct for the country’s private enterprises to…

Asia Pacific Financial News from John Lothian News – December 18, 2017 Standard

Lead Stories Hong Kong Listings Rule Changes Set to Transform Market, Li Says By Benjamin Robertson and Rishaad Salamat – Bloomberg HKEX on Friday proposed allowing dual-class share companies; Profitability requirement for biotech companies also dropped Hong Kong Exchanges & Clearing Ltd.’s proposal to change which companies are eligible to list in the city will boost the pipeline of initial public offerings, according to Chief Executive Officer Charles Li. https://goo.gl/LHtGVH Trump to label China as a strategic ‘competitor’; Beijing accused of pursuing policies of economic aggression to weaken US Demetri Sevastopulo in Washington – FT President Donald Trump will describe…