Background: Crypto Catch 22
Followers of the SEC’s efforts to regulate digital tokens will recall former SEC Corp Fin Director William Hinman’s speech at the June 14, 2018 Yahoo Finance Conference in which he introduced the now generally accepted proposition
Continue Reading Crypto Reform Goes to Congress: Proposed Three-Year Safe Harbor for Distribution of Pre-“Network Maturity” Digital Tokens
Lately I’ve been approached by clients and potential clients about series LLCs, so I thought it would be worth blogging about. Basically, a series LLC is an LLC that may create one or more series, each generally having separate assets
Continue Reading Series LLCs, Serious Risks
The Securities and Exchange Commission announced on July 13, 2021 that it settled fraud charges against a special purpose acquisition company, its sponsor, its sponsor’s CEO and its proposed merger target for making misleading statements about the target’s technology and
Continue Reading “Do Your Homework!”: SEC Order Sends Strong Message to SPAC Participants on Due Diligence
On May 3, 2021, blockchain-based trading platform operator INX Ltd. announced it had completed its initial public offering of digital tokens, raising approximately $85 million in the IPO from over 7,200 institutional and retail investors. The INX IPO is the
Continue Reading First Ever SEC Registered Digital Token IPO May Bring Clarity to Blockchain Asset Industry
A new reality streaming television series called Unicorn Hunters debuts May 10 in which startups will pitch to a panel that includes Apple co-founder Steve Wozniak, and the panelists after grilling the entrepreneurs will make decisions on whether or not
Continue Reading Securities Safety Check for New TV Series “Unicorn Hunters”
Perhaps the most vexing threshold issue faced by any company considering a capital raise is which securities exemption to pursue. The chosen exemption largely depends on the targeted amount of the raise, as well as the manner in which potential
Continue Reading Issuers May “Test-the-Waters” Before Choosing a Securities Exemption
On December 2, the Securities and Exchange Commission filed a lawsuit against Ripple Labs, Inc. and two of its executives alleging they offered and sold over $1.38 billion of digital asset XRP without registration or exemption in violation of Section
Continue Reading SEC vs. Ripple Could Make Waves in Cryptocurrency Market
For the second time in nine days, I recently drove ten hours round-trip to drop my son off at school for spring semester. The first time around, he ended up returning home with me the next day for unexpected oral
Continue Reading Relief for Pre-Verified Accredited Investors May Encourage Rule 506(c) Offerings
A freeze on government regulation is generally perceived by most people as being a positive development for private enterprise. Not necessarily so, however, when the regulation being frozen is itself a reform of preexisting regulatory burdens.
Among the many Presidential
Continue Reading Why Private Capital and Crowdfunding Markets Should be Nervous about President Biden’s Regulatory Freeze
You just raised $1 million in your crowdfunding offering under Title III/Regulation CF. That’s the good news. The bad news? You now have over a thousand shareholders on your cap table, making it unwieldy, an administrative nightmare and likely to
Continue Reading Strict Traffic Rules for New Crowdfunding Vehicles – Part Three of Exempt Offering Amendments Deeper Dive
