Tag:SEC
Kraken Settles with the SEC in a $30 Million Deal
Sophie Shapiro Associate Editor Loyola University Chicago School of Law, JD 2024 Kraken will pay $30 million to settle SEC (Securities and Exchange Commission) allegations that it broke the agency’s rules with its cryptoasset staking products and will discontinue them in the United States as part of the agreement with the regulator. What is Kraken? …
Read more
A Blizzard of Controversy: Activision-Blizzard Settles with the SEC Amid Controversy
A Blizzard of Controversy: Activision-Blizzard Settles with the SEC Amid Controversy Jacob Taylor Associate Blogger Loyola University Chicago School of Law, JD 2024 Activision-Blizzard became one of the largest gaming companies in the world after the merger between the two companies in 2008. The company is known for its games, and more recently for …
Read more
The SEC’s Second Attempt to Fix a 10-Year-Old Problem
The 2008 financial collapse occurred when banks began substantially increasing access to debt. They offered adjustable-rate mortgages to borrowers who could afford the initial mortgage payments, but would end up defaulting on the loans when their adjustable interest rates kicked in. The banks then subsequently packaged these high-risk loans together and sold them as securities to mutual funds, investment banks, and pension funds. When most of these high-risk loans defaulted, the market crashed. The recession that followed cost the public thousands of jobs, homes, and retirement accounts.
Coinbase Global Inc. Settlement Raises More Questions for Financial Regulators
On January 4th, 2023, the New York State Department of Financial Services made public that a $100 million settlement with the cryptocurrency exchange Coinbase Global Inc. (Coinbase) has been agreed to. The settlement follows an enforcement action imposed this past August aiming to regulate cryptocurrencies. With a lot of discussion happening given the recent collapse of FTX and anti-money laundering violations by Robinhood Markets, this action begs the question: should the digital currency industry be regulated nationwide and, if so, what should these regulatory agendas look like?
The SEC and Its New Marketing Rule: Testimonials and Endorsements
The Securities and Exchange Commission’s (SEC) new marketing rule will take effect on November 4, 2022. Advertising and solicitation regulations have undergone a major overhaul after decades of continuity. Further, testimonials and endorsements are no longer prohibited, but their use will be conditioned on compliance with certain provisions. The new rule only applies to financial adviser’s communications that are advertisements, as defined in the new rule.
The Clock Continues to Tick for SEC Climate Proposal
Juhi Desai Associate Editor Loyola University Chicago School of Law, JD 2024 In March 2022, the U.S. Securities and Exchange Commission (SEC) released a 490-page proposal encouraging organizations to adopt climate-focused regulations. The policies could include climate disclosure requirements and an expense report detailing the effect climate change has on businesses. However, shortly after the …
Read more
Climate-Related Disclosures for Investors: What the SEC Has Proposed & How Proposals May Impact the Regulatory World and Small Businesses
In March of this year, the Securities and Exchange Commission (SEC) proposed a new rule that would require public companies to disclose important information about their carbon footprint. Although many continue to sing the praises of the new rule, a fair share of critics has emerged as well. Additionally, while this proposal may have an impact on large public companies, critics question what this rule will mean for smaller suppliers.
Jarksey v. SEC and the Future of Administrative Adjudications
On May 18, 2022, the United States Court of Appeals for the Fifth Circuit issued a novel and divisive decision that greatly restricts the administrative enforcement powers of the SEC and its use of Administrative Law Judges (ALJs) in Jarksey v. SEC. Although much deliberation has been had over the implications and immediate impact of this ruling, the takeaway is that the Securities and Exchange Commission (SEC) may be facing significant challenges to its internal enforcement procedures in the near future.
SEC Looks to Modernize the Fund Names Rule
On May 25th, 2022, the Securities and Exchange Commission (SEC) issued a proposal to the Investment Company Act of 1940 Rule 35d-1 which expands on a rule that mostly regulates fund names. The SEC has decided to take these measures to combat “greenwashing”; a marketing ploy used by fund investors to draw in socially conscious investors for investments that are anything but sustainable. The SEC believes investors lack comparable, consistent, reliable information on ESG products. This article will discuss these new proposals and what they mean for important stakeholders.
The SEC and Its ESG Investment Disclosure Proposal
The Securities and Exchange Commission (SEC) established the Environmental, Social, and Governance (“ESG”) Task Force in 2021. In March and May of 2022, the SEC proposed a disclosure rule “forcing publicly traded companies to disclose how climate change could threaten their businesses and describe their contributions to global warming.” The rule further accentuates the SEC’s mission “to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.” However, the proposal has faced substantial opposition, as some believe the proposal exceeds the SEC’s authority.