Pro-Crypto Groups Lobby Against Re-Nomination of SEC Commissioner Crenshaw

Crypto Groups Push Ads, Letters to Oppose Democrat’s U.S. SEC Commissioner Nomination

U.S. Securities and Exchange Commission member Caroline Crenshaw is “even more extreme” than Chair Gary Gensler, according to a digital advertising campaign now being launched by Cedar Innovation Foundation — a dark-money group funded by unnamed crypto interests.

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Several digital assets organizations have deployed in an effort to block her approval. Cedar Innovation Foundation underlined in a statement that Crenshaw had opposed the approval of spot bitcoin exchange-traded funds and has criticized crypto markets as “a ‘petri dish’ of fraud.” The Blockchain Association and other lobbying groups have sent letters to the Senate lawmakers urging a rejection of the commissioner, whose current five-year term has expired, leaving her serving in a buffer period that could last until the end of 2025.

PCAOB Critic Picked for SEC Chair, Raising Potential for a Smaller Audit Watchdog

President-elect Donald Trump’s plan to nominate Paul Atkins, a longtime critic of the Public Company Accounting Oversight Board, to lead the regulator that oversees it could spur major changes at the audit watchdog, possibly including a move to abolish it.

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Atkins is expected to ease overall oversight, including of cryptocurrency firms, but his past criticism of the PCAOB could signal an even more drastic shake-up to audit regulation. That would likely mean a softer regulatory touch with accounting firms and a new leader to replace Chair Erica Williams, longtime observers say.

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New leadership likely would scale back the PCAOB’s reach, leading to fewer penalties, slower rule making and a smaller budget, PCAOB observers say. A long-gestating debate over whether the SEC should absorb the PCAOB is poised to resurface, they say.

SEC Charges Morgan Stanley Smith Barney for Policy Deficiencies that Resulted in Failure to Prevent and Detect its Financial Advisors’ Theft of Investor Funds

The Securities and Exchange Commission today charged Morgan Stanley Smith Barney LLC (MSSB) with failing to reasonably supervise four investment adviser and registered representatives (hereafter, financial advisors) who stole millions of dollars of advisory clients’ and brokerage customers’ funds and for failing to adopt policies and procedures reasonably designed to prevent and detect such theft. To settle the charges, MSSB agreed to pay a $15 million penalty and accept certain undertakings.

According to the SEC’s order, MSSB failed to adopt and implement policies and procedures reasonably designed to prevent its financial advisors from using two forms of unauthorized third-party disbursements, Automated Clearing House (ACH) payments and certain patterns of cash wire transfers, to misappropriate funds from advisory client accounts and brokerage customer accounts. The order finds that MSSB financial advisors made hundreds of unauthorized transfers from customers’ or clients’ accounts to themselves or for their own benefit.

Reframing the Critiques of a U.S. Bitcoin Reserve

Critiques of a U.S. Bitcoin reserve often rely on oversimplifications and fail to address the broader economic, legal, and strategic considerations. The BITCOIN Act of 2024 offers a thoughtful framework for responsibly incorporating Bitcoin into national reserves, balancing innovation with fiscal prudence.

By leveraging Bitcoin’s unique attributes, managing risks effectively, and positioning the U.S. as a global leader in digital finance, a Bitcoin reserve represents a forward-thinking approach to economic resilience. The debate should move beyond sensationalist critiques to focus on the nuanced realities of integrating a multi-trillion dollar asset class into national policy.

Boies Schiller Tops Rivals’ Bonuses as Some Surpass $1 Million

Boies Schiller Flexner is topping rivals with year-end associate bonuses—some exceeding $1 million—as a firm leader said lawyers deserve a return for their work. Nearly 99% of associates will get awards that match or exceed what they would earn under the scale of $21,000 to $140,000 set by Milbank and Cravath Swaine & Moore, Boies Schiller managing partners said in a memo reviewed by Bloomberg Law.

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The firm takes an individual approach in formulating associate bonus amounts, weighing client business origination, hours worked, and payouts from contingency matters, Schwartz said. “Multiple” associates have done well enough under the calculation to take home seven-figure bonuses, he said.