Fifth Circuit Vacates SEC's Private Funds Rule

Court Strikes Down S.E.C.’s Fee Disclosure Rule for Funds

The unanimous decision from the U.S. Court of Appeals for the Fifth Circuit in New Orleans sided with a group of associations representing the private fund industry in ruling that the S.E.C. exceeded its authority with the rule, which was enacted in August.

In its decision, the appeals court agreed with their argument, saying that the regulator had overstepped with its rule, which was based on a law meant to protect everyday investors, who typically invest in mutual funds and other public securities, rather than investors in hedge fund and private equity firms.

Dallas Needs a Stock Exchange

Because if you’re starting an exchange, you probably do need some value proposition beyond “we’re a computer where you can trade stocks.” You need a story to attract investors and attention and ultimately traders.

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And now here’s TXSE, the Texas Stock Exchange, whose proposition seems to be some combination of “we will protect public companies from woke,” “we will charge lower fees for listing exchange-traded funds,” and “our computers are in Texas”:

FTX seeks to stop outside litigation against insiders, VC firms

FTX on Tuesday asked a U.S. judge to stop outside litigation against company insiders and venture capital firms accused of playing a role in the bankrupt crypto exchange’s collapse, saying the lawsuits undermine FTX’s own effort to repay customers.

The lawsuits, including class action complaints filed by FTX customers, could eat into an estimated $16 billion recovery that the company intends to pay customers in its bankruptcy, FTX said in court documents filed Tuesday in federal court in Miami.

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FTX said that the class action lawyers were trying to pocket up to $400 million in legal fees “despite having to date provided next to no monetary benefit” for FTX customers and other victims.

U.S. crypto advocacy group tops 1 million members after Biden veto

Stand with Crypto, an advocacy organization for voters who own cryptocurrencies, saw its membership surpass 1 million on Wednesday, as crypto backers push politicians to create a new regulatory framework for the digital asset industry while averting more onerous compliance requirements.

Brian Armstrong, chief executive of Coinbase, an online platform for buying and selling crypto that helped launch Stand With Crypto last August, said the group’s rapid growth showed the potential voting power of cryptocurrency users.

“It’s a much bigger voting bloc than most people probably would have anticipated,” Armstrong told Reuters.

Robinhood Doubles Down on Crypto With Deal for Bitstamp

Robinhood is wading deeper into crypto with a $200 million deal for Bitstamp, despite the Securities and Exchange Commission’s warning that it plans to sue the brokerage over its digital-assets business.

The deal for the crypto exchange comes a month after Robinhood disclosed that it received a so-called Wells notice that the regulator is preparing to sue the company over alleged violations of securities laws.

The acquisition would allow Robinhood to serve institutional crypto clients and expand its crypto offerings internationally, the company said. Bitstamp holds more than 50 licenses and registrations globally.