Posts by Lahdan Rahmati, Esq.
Digital Asset Activities Are Subject to Anti-Money Laundering and Anti-Terrorism Rules
On October 11, 2019, the leaders of the U.S. Commodity Futures Trading Commission (CFTC), the Financial Crimes Enforcement Network (FinCEN), and the U.S. Securities and Exchange Commission (SEC) (the “Agencies”) issued a joint statement to remind persons engaged in activities involving digital assets of their anti-money laundering and countering the financing of terrorism (AML/CFT) obligations…
Read MoreSEC shutdown Telegram’s allegedly illegal ICO that raised over $1.7 Billion of Investor Funds
The U.S. Securities and Exchange Commission’s (SEC) Cyber Unit is actively fulfilling its promise to protect investors against cyber-related misconduct involving distributed ledger technology and ICOs. Earlier today, the SEC issued a press release to announce that it has filed an emergency action and obtained a temporary restraining order against two offshore entities, Telegram Group Inc.…
Read MoreJoint Statement by SEC & FINRA on Custody Solutions for Digital Securities
On July 8, 2019, the SEC and FINRA issued a joint statement, which underscores the importance of establishing custody solutions that meet the possession or control standards over customers’ digital asset securities, or digital securities, because brokerage firms can fail just like Bear Stearns and Lehman Brothers failed in 2008. The joint statement acknowledges the fact…
Read MoreSEC Final Rules Intelligently Reduce Disclosure Requirements
On March 20, 2019, the U.S. Securities and Exchange Commission (SEC) adopted final rules (the Final Rules) to modernize and simplify certain disclosure requirements in Regulation S-K, as mandated by the 2015 Fixing America’s Surface Transportation Act (the FAST Act). The Final Rules are effective today. The most significant changes to the disclosure requirements under Item 601(b)(10) of Regulation…
Read MoreFinal Rules Allow Exchange Act Reporting Companies To Use Regulation A
On December 19, 2018, the U.S. Securities and Exchange Commission (the “Commission”) adopted final rules (the “Final Rules”) to allow Exchange Act reporting companies (“Reporting Companies”) to rely on Regulation A for their securities offerings. Prior to the adoption of the Final Rules, Reporting Companies were deemed ineligible to rely on Regulation A. In the words of Chairman of the…
Read MoreTop Takeaways from LACBA’s 51st Annual Securities Regulation Seminar
The U.S. Securities and Exchange Commission (SEC) looks at the root cause of misconduct and fashions relief that directly addresses the root cause. – Steven Peikin, SEC, Co-Director, Division of Enforcement Steven Peikin explained that as a result of the recent SEC Settlement with Tesla, Tesla must establish protocols of oversight with respect to Musks’…
Read MoreSecurity Token Offerings White Paper
Bevilacqua PLLC released a white paper for issuers entitled “Security Token Offerings: How to Sell Security Tokens in a Manner that Complies with U.S Federal and State Securities Laws” describing the legal and financial considerations involved in these types of offerings. According to estimates, ICOs raised over $5 billion during 2017 and over $6 billion…
Read MoreAre You Compliant With The New OTCQB Listing Standards Implemented In Q2 2018?
The OTC Markets Group implemented new standards for companies planning to list on the OTCQB® Venture Market (OTCQB®) effective May 20, 2018 in order to improve the information and trading experience for investors. The OTCQB® is for early-stage and developing companies while the OTCQX® Best Market is for established, investor-focused companies. Requirements for Admission to OTCQB® A…
Read MoreCrypto Czar Is Shutting Down Fraudulent ICOs Like Titanium Blockchain & Centra Tech
On June 4, the U.S. Securities and Exchange Commission (the “Commission”) announced that Valerie A. Szczepaknik was named Associate Director of the Division of Corporation Finance and Senior Advisor for Digital Assets and Innovation for Division Director Bill Hinman. Valerie A. Szczepaknik is referred to informally as the “Crypto Czar” and is shutting down as many fraudulent…
Read MoreRegulation A+ Is Even Better After Passage Of The Economic Growth Act
On May 24, 2018, President Trump signed the Economic Growth, Regulatory Relief and Consumer Protection Act (the Act) into law. The Act was introduced by Senator Mike Crapo, a Republican Senator from Idaho, in the United States Senate Committee on Banking, Housing and Urban Affairs on November 16, 2017. The 73-page-long Act contains a short…
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