Lindgren, Lindgren, Oehm & You LLP’s Post

Alexander Lindgren and I collaborated on an article, "Highlighting Regulatory Issues with Forward Contracts on Crypto Assets." This article highlights a relatively common practice of market participants entering into "forward contracts" on crypto assets. Are these arrangements Swaps under the CEA? This article concludes: IT DEPENDS! This might be one of those rare instances in which market participants may be unwittingly taking on a lot of regulatory risk. Would appreciate any feedback. https://lnkd.in/gMBjHhWc

The article reports that SEC Chair Gary Gensler is advocating for changes to the definition of "exchange" and "dealer," which could impact crypto trading platforms and other market participants. tZERO is already compliant and is one of only two firms in the US with special purpose broker-dealer status, enabling it to provide secure custody for digital asset securities. #digitalassets #privatemarket #privatesecurities #digitalsecurities #tokenization #regulatorycompliant #DeFi https://lnkd.in/gDpk59KR

#Canada Interpreting the Gray zones in the tester definitions for classification of Digital Assets/ Securities/Crypto. The issuer’s management retains a significant number of unsold tokens from the offering or “pre-mines” a significant number of tokens before they are publicly available; Management makes statements suggesting that the tokens will appreciate in value, or compares them to other cryptocurrencies that have increased in value; and Management makes representations that tokens are reasonably expected or marketed to trade on crypto trading platforms or to otherwise be freely tradeable in the secondary market.

The Canadian Securities Administrators (CSA) - Autorités canadiennes en valeurs mobilières (ACVM) has extended the compliance deadline for value-referenced crypto assets to December 31, 2024. 🗓️💰 In their latest analysis, Sabrina Alaimo and Rachel D'Ercole unpack the implications of this extension for crypto asset trading platforms (#CTPs) and investors. With the regulator considering specific exemptions, this shift could significantly impact the Canadian crypto landscape. Read the full breakdown to stay ahead>> https://lnkd.in/gwD45UTV

The #crypto industry has been fighting in every available arena to avoid being regulated by the U.S. Securities and Exchange Commission, which is known to be a tough and effective cop on the financial beat. For years now, the #SEC has aggressively protected investors and markets from the predators and crooks in the crypto industry. In our new report by Benjamin Schiffrin, we explain why crypto should be regulated by the #SEC under the #Howey Test to protect investors. https://lnkd.in/dajs7s6w

Another crypto case involving an unregistered b-d. eToro settled charges with the SEC that it operated an unregistered broker and unregistered clearing agency in connection with its trading platform that facilitated buying and selling certain crypto assets as securities. The firm operated as a broker and clearing agency, allowing U.S. customers to trade crypto assets offered and sold as securities through its online platform. However, the firm did not comply with the registration provisions of the federal securities laws. The firm agreed to cease and desist the activities and pay $1.5 million to settle charges. The firm also agreed to liquidate any crypto assets offered and sold as securities that it cannot transfer to its customers and return the proceeds to the respective customers. #SEC, #digitalassets, #crypo, #regulatorycompliance Read More👇:    https://lnkd.in/eWhSCmjS.   

The CFTC regulating crypto, instead of the SEC, brings clearer rules and fosters innovation by treating cryptos as commodities. This can drive technological advancements and encourage startups. Conversely, the SEC's stricter oversight provides stronger investor protection but may slow innovation. Balancing these approaches is key. #CryptoRegulation #CFTC #SEC #Innovation #InvestorProtection https://lnkd.in/e9HM3g3g

Canadian securities regulators provide update on interim approach to value-referenced crypto assets The Canadian Securities Administrators is providing an update today to crypto asset trading platforms on the implementation of its interim approach to value-referenced crypto assets.