In the wake of further developments by the SEC, many key players in the industry are currently combining efforts to petition federal authorities to see certain virtual currencies in a “different light.” The Venture Capital Working Group is led by Andreessen Horowitz, which includes another significant VC firm, Union Square Ventures, and lawyers from Cooley […]
Venture Capitalists Seek “Safe Harbor” for Virtual Currencies
What Do We Not Know about Bitcoin?
Have you ever gotten the feeling that everyone knows something you don’t know? Many people are starting to feel that way about Bitcoin. Most recently, China has blocked everyone in its country from accessing websites that offer cryptocurrency trading services or initial coin offerings (“ICOs”). Yes, no more Bitcoin in China! The initial response […]
Celebrity Endorsements Leave ICOs Counting Much More than Coins
The Securities and Exchange Commission (SEC) recently issued a public statement cautioning celebrities like Paris Hilton, DJ Khaled, and Floyd Mayweather from endorsing “initial coin offerings,” commonly referred to as ICOs. These celebrities were primarily using their various social media platforms to advertise for ICOs. A recent example is Mayweather’s attention-grabbing Instagram post from July, […]
SEC fines Zenefits and former CEO Parker Conrad
On October 26, 2017, the Securities and Exchange Commission (the “SEC”) fined a Silicon Valley unicorn startup, Zenefits, and its former CEO Parker Conrad for “materially false and misleading statements and omissions” to the company’s investors regarding non-compliance with state insurance laws. This is a first for a Silicon Valley startup. Zenefits and Conrad agreed […]
A New Approach to Financial Regulatory Enforcement
The regulatory enforcement of the financial industry may soon change. As the new administration settles into Washington; reports have suggested the rise of dedicated efforts to change, and potentially reduce, financial regulation by the Securities and Exchange Commission (“SEC”) and the Consumer Financial Protection Bureau. While these efforts have not yet fully materialized, there are […]
SEC finds U.S. Crowd-Funding Offers New Capital Source
Crowdfunding has become an increasingly popular form of raising capital for small businesses and entrepreneurs. Social Media platforms have come to play a large role in facilitating crowd funding. They also, as a platform for crowd funding, have enabled regulators to foster fair valuations in determining the value of enterprises whose shares are offered for […]
President Trump to Repeal Dodd-Frank
President Trump Scales Back Dodd-Frank The Dodd-Frank Wall Street Reform and Consumer Protection Act, better known as the Dodd-Frank Act (the “Act”), is a financial reform package passed during the Obama administration as a response to the financial crisis of 2008. The Act, signed into law in 2010, re-designed Wall Street and the American financial […]
Snap’s IPO and Lack of Shareholders’ Rights
Snap Inc. (“Snap”) recently filed its IPO with the SEC. The intended IPO of the parent company of the messaging app Snapchat has already been heavily debated and various commentators have criticized Snap’s intended governance structure.
Supreme Court Appointment Threatens Long-Standing Chevron Doctrine
Agency law is having a moment in the spotlight. With the nomination of Judge Neil M. Gorsuch to the Supreme Court, attention is being drawn to issues where his vote stands to make an impact. One such issue is Chevron deference, a long-standing agency law doctrine followed by the Supreme Court for over thirty years. […]
The Future of the Securities and Exchange Commission
Last week, U.S Securities and Exchange Commission Chairwoman, Mary Jo White, announced that she will resign at the end of President Barack Obama’s second term. While this comes as no surprise, there is collective worry as to who will be appointed next. If Hilary Clinton had won the presidency, the new SEC chair would likely […]