A Short Election Day Edition

SEC Faces Rising Litigation Risk Over Rules, Watchdog Says

Legal challenges over the SEC’s corporate climate disclosure and hedge fund fee reporting rules are a harbinger of more litigation to come over agency regulations, the agency inspector general’s office said.

The Securities and Exchange Commission is facing heightened judicial scrutiny under Democrat Gary Gensler, the SEC’s chair since 2021, according to the Office of Inspector General’s annual report on the agency’s top management and performance challenges, released Monday….

Binance, CZ’s Lawyers File Motion to Dismiss Amended Complaint in SEC Lawsuit

On Monday, they filed a motion to dismiss an amended complaint submitted by the SEC last month.

Their filing argues that the amended complaint pays “lip service” to an earlier court ruling that crypto assets are not in and of themselves securities but “refuses to accept the logical conclusion of that ruling—that secondary market resales of the assets long after they were first distributed by their developers are not ‘securities’ transactions.”

“Instead, the SEC’s Amended Complaint continues to insist that virtually all transactions involving crypto assets—including blind secondary market resales of tokens—are securities transactions because some buyers might hope the assets will increase in value,” it said.