Over the past year, the U.S Securities and Exchange Commission (“SEC”) has increasingly scrutinized initial coin offerings (“ICO”) and certain digital assets. On September 20, 2018, the SEC’s Enforcement Division co-Director, Stephanie Avakian, gave a speech in which she addressed
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The SEC and FINRA Bring the First Enforcement Actions Against Broker-Dealers for Violations in Digital Asset Markets, Providing Reminder of Compliance Obligations
On September 11, the Securities and Exchange Commission (“SEC”) and the Financial Industry Regulatory Authority (“FINRA”) each separately initiated their first enforcement action for violations of broker-dealer regulatory requirements under U.S. securities laws in digital asset markets. These actions echo
Federal Court, SEC, and FINRA Scrutinize Cryptocurrencies and ICOs
On Tuesday, September 11, 2018, Judge Raymond J. Dearie of the Eastern District of New York issued a decision holding that Initial Coin Offerings (“ICO”) may qualify as securities offerings and therefore be subject to the criminal federal securities laws.
New York Department of Financial Services Approves Gemini and Paxos Virtual Currency “Stablecoins”
This week, the New York Department of Financial Services (“NYDFS”) announced approval for its two licensed FinTech-oriented state trust companies, Gemini Trust Company LLC and Paxos Trust Company LLC (formerly known as itBit Trust Company), to offer a new type
Treasury Report Embraces Machine Learning and Artificial Intelligence in Financial Services
Artificial intelligence and machine learning (for simplicity, we refer to these concepts together as “AI”)[1] have been hot topics in the financial services industry in recent years as the industry wrestles with how to harness technological innovations. In its
OCC Begins Accepting Applications for FinTech Charters
On July 31st, the Office of the Comptroller of the Currency (“OCC”) announced that it would begin accepting applications for a special purpose national bank charter (“FinTech Charter”) from nonbank financial technology companies that offer bank products and services, meet
Treasury Report Recommends More Consistent Regulation to Spur Innovation
On July 31st, the Treasury Department (“Treasury”) released its fourth and final report in response to President Trump’s Executive Order 13772. The report, entitled “A Financial System That Creates Economic Opportunities: Nonbank Financials, Fintech, and Innovation” (the “Report
Treasury Releases FinTech Report, and OCC Immediately Relaunches a National FinTech Charter
Today, Treasury released its long-awaited FinTech report entitled “A Financial System That Creates Economic Opportunities: Nonbank Financials, Fintech, and Innovation”. While the report provided only a very truncated discussion of distributed ledger technologies, blockchain, and digital assets, it discussed at
Cleary Gottlieb Partner Pamela Marcogliese Moderates Panel on Machine Learning and Artificial Intelligence in Finance
On Wednesday, July 25th, Pamela Marcogliese, a partner at Cleary Gottlieb, moderated a panel for Women in Derivatives on the role of artificial intelligence (“AI”) and machine learning in the financial industry featuring experts such as Dr. Sherry Marcus, Managing
New York Department of Financial Services Approves Significant Expansions of State-Regulated Virtual Currency Businesses
The New York Department of Financial Services (“NYDFS”) recently announced approval of significant new activities for FinTech-oriented businesses. Over the past week, NYDFS has granted the following approvals:
- Additional virtual currencies available for trading through Paxos Trust Company LLC (formerly