The SEC issued an order approving the applications of 11 different spot Bitcoin exchange-traded products to each list and trade their shares on a national securities exchange. This order represents the first time that the SEC has permitted the listing
The Capital Commitment
Proskauer on Private Fund Litigation
The Capital Commitment, published by Proskauer Rose LLP, focuses on legal issues affecting private capital markets, including private funds, private equity, and private credit. The blog covers regulatory and litigation risks, SEC enforcement actions, compliance challenges, and market trends impacting fund managers and investors. Topics include SEC rulemaking, whistleblower regulations, cryptocurrency and blockchain-related securities matters, ESG compliance, and the effects of macroeconomic changes on private capital. It also addresses corporate governance, investment management, and transactional developments relevant to private capital stakeholders.
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2023 SEC Enforcement Results – Takeaways for Fund Managers
On November 14, 2023, the SEC’s Division of Enforcement announced its Enforcement Results for Fiscal Year 2023. Below are some key takeaways for fund managers:…
Words Matter: Three Key Steps to Mitigate SEC Enforcement Risks Relating to Whistleblower Carveout Language
Since 2015, the SEC has brought nearly two dozen enforcement actions for violations of the whistleblower protection rules under Rule 21F-17(a) against employers for actions taken to impede reporting to the SEC. The bulk of these actions have focused on…
The Countdown Starts: Compliance Dates Set for Private Fund Adviser Rules
Earlier today, the SEC’s Private Fund Adviser Rules were published in the Federal Register. As with all federal regulations, publication in the Federal Register begins the countdown to the Rules’ compliance dates. These dates are listed in the table…
Lawsuit Challenges Private Fund Adviser Rules
On Friday, September 1, 2023, a lawsuit was filed with the federal Court of Appeals in the Fifth Circuit challenging the validity and enforceability of the recently adopted Private Fund Adviser Rules under the Investment Advisers Act of 1940 (the…
Second Circuit Holds That the Syndicated Term Loans in Kirschner Are Not Securities
On August 24, 2023, the Second Circuit Court of Appeals issued its much-anticipated decision in Kirschner v. JP Morgan Chase Bank, holding that the syndicate term loans at issue were not securities. As noted in our earlier blog post…
SEC Adopts Private Fund Adviser Rules
Yesterday, the five SEC commissioners voted 3-2, along party lines, to approve the Private Fund Adviser Rules. The final Rules scale back from what was initially proposed 18 months ago, in ways that are likely to be a relief to…
Are Syndicated Term Loans Securities? The SEC Declines to Weigh in on Kirschner
Participants in the syndicated loan markets may have been relieved last month when the SEC declined to file the amicus brief requested by the Second Circuit Court of Appeals in Kirschner v. JP Morgan Chase Bank. In an unusual turn…
The Ripple Effect: Implications of the SEC’s Partial Loss in SEC v. Ripple Labs Inc.
The SEC suffered a significant loss last week in its ongoing legal battle with Ripple over the XRP digital token. While the District Court held that Ripple’s initial sales of XRP to institutional investors constituted the sale of unregistered securities,…
The Crypto Wars Escalate
The gloves are off. The SEC’s recent enforcement actions against leading crypto exchanges suggest that the SEC has decided that time’s up for the crypto industry as it currently exists in the United States.
After spending years urging industry participants to…