Tag:Journal of Regulatory Compliance
Regulating Crypto Markets through the Build Back Better Act: Crypto Investors’ Future Compliance with Wash Sale Rules
The Build Back Better Act, which passed through the House of Representatives in November 2021, has been stalled in the Senate for several months. Senate Majority Leader Chuck Schumer has insisted that Democrats will work until the bill is passed. Within the Build Back Better Act, cryptocurrencies are shifted from being treated like property to being treated more like traditional securities, subjecting all digital currencies to wash rules under Section 1091. With cryptocurrencies collectively evaluated at upwards of $3 Trillion in 2021, crypto investors under the Build Back Better Act would be subject to the regulatory anti-abuse rules that currently apply to both stocks and bonds. This move by Democrats is for taxing purposes, but ultimately will call into question the IRS’ ability to regulate certain crypto transactions and asset disclosures. Additionally, questions have been raised as to the future regulation of cryptocurrencies and what that will mean for one of the most volatile trading markets.
Failure To Regulate NFTs and Crypto Currencies Will Lead to Catastrophic Environmental Implications
Non-fungible tokens (NFTs) are emerging digital assets with numerous rights and obligations. However, regulations and laws in the United States are only barely beginning to catch up, and NFTs consume nearly as much energy as a small country. Without NFT regulation, climate change catastrophes are likely to be evident sooner than expected.
The Financial Services Industry and Its Regulatory Landscape: 2021
Every year, hundreds of financial advisors and brokers across the country are convicted of a host of bad acts, which include conducting Ponzi schemes, misappropriating client funds and forging customer signatures. 2021 was no exception. Here are ten recent examples of how the legal system as well as regulators in the financial services industry, respond to allegations of fraud, misappropriation, improper hiring practices, and criminal activity.
Expanding Generic Approval Benefits Pharmaceutical Manufacturers & Patients
Prescription drug consumers are often left frustrated when confronted with limited generic versions, if any are available, and must resort to paying out-of-pocket for their prescriptions. This is due in part to how the FDA evaluates and approves new drug products prior to market entry. Applications for FDA approval of a drug product reach the FDA by pathways established under the federal Food Drug & Cosmetics Act (FDCA).
2022: U.S. Privacy Chaos, Continued?
Conversation surrounding the hodgepodge of state data privacy legislation in the U.S. has long been a subject of frustration within the U.S. and abroad. 2021 saw a drastic uptick in awareness and a need for meaningful comprehensive consumer privacy laws. With both data privacy and cybersecurity repeatedly making front page news over the last year, and even becoming high priority within the Biden Administration, it has become one of the few issues on which people across the political spectrum can agree. But will 2022 be the year that comprehensive federal privacy legislation becomes a reality? Don’t count on it.
The ATF Has Become Too Weak to Do its Job
On January 19, 2022, a searchable database of inspection reports from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) became publicly accessible. The ATF carries out firearms compliance inspections to ensure that federal firearms licensees (FFLs) are complying with federal gun control regulations, as well as local laws. Brady, the organization responsible for compiling the inspection database, reports that even when FFLs have violated regulations, the ATF only rarely revokes their licenses.
NATO Membership and the Rising Tensions Between Ukraine and Russia
Russia has recently been assembling their troops along their shared border with Ukraine in what is seemingly amounting to a planned invasion of the country. While Ukraine is warning that Russia is attempting to destabilize and invade the country, Russia denies any potential plans to attack and insists that NATO support for Ukraine is a threat on Russia’s border. As the world watches in suspense, the United States and other NATO members are at a crossroads as to whether Ukraine may join the pact.
Insider Trading Isn’t Illegal if You Are a Member of Congress
Jon Ossoff, the freshman Senator from Georgia, has made it clear that he intends to put forth a bill that would ban members of Congress from trading individual stocks. This is a policy that seems likely to fail, but that doesn’t make it any less necessary. It is estimated that members of Congress and their families bought and sold over $500 million worth of assets. That’s not to say that all these trades were based on information not available to the general public, but it is clear that there is a massive conflict of interest in allowing law makers to trade stocks when their job is intrinsically tied to making decisions that affect the price of stocks.
International Student-Athletes Lose Out in NIL Era
The NCAA’s interim Name, Image, and Likeness (“NIL”) policy has made it possible for student-athletes to receive compensation, however, equitable shortcomings are evident. The most significant issue is faced by international student-athletes, who are substantively barred from capitalizing on the NIL opportunities afforded to their American counterparts.
Cargo Congestion at America’s Container Ports
Container ports from coast to coast are inundated with empty cargo containers. The Federal Maritime Commission has commenced an investigation into America’s import and export flows, as many ports are overcrowded with empty containers that have yet to be collected or transported back to their point of origin. Carriers that fail to remove empty containers from the port run the risk of incurring fines or penalties, but there is widespread inconsistency with regard to port authorities and their enforcement practices. In addition, the global pandemic has exacerbated container congestion, as shipping flows reached an all-time high in 2020 and citizens around the world have become increasingly reliant on online retailers to deliver household goods.