SEC Commissioner Peirce: Many Memecoins Are Not Within SEC's Jurisdiction

SEC’s Peirce Says ‘Many’ Memecoins Likely Fall Outside Regulator’s Jurisdiction

The U.S. Securities and Exchange Commission (SEC) likely doesn’t have jurisdiction over many of the memecoins flooding the crypto market, SEC Commissioner Hester Peirce said in a Tuesday interview with Bloomberg.

We always have to look at the facts and circumstances, but many of the memecoins that are out there probably do not have a home in the SEC under our current set of regulations,” Peirce said. “If that’s something Congress wants to address, they can do that. Maybe that’s something that the [Commodity Futures Trading Commission] wants to address. But many of those, I think, are probably not within our jurisdiction.”

Bye Bye SEC Binance Case (So This Is How The SEC Dies)

The U.S. Securities and Exchange Commission (SEC) and crypto exchange Binance have asked a Washington, D.C. federal judge overseeing the SEC enforcement action to pause the case for two months as the agency transforms its approach to digital asset regulation and enforcement.

In a joint motion to stay the case on Tuesday, the parties argued that the work of the SEC’s newly created crypto task force to develop a regulatory framework for digital assets “may impact and facilitate the potential resolution of this case… Accordingly, the SEC proposed a brief stay to defendants, and the defendants agreed that a stay is appropriate and in the interest of judicial economy,” said the unprecedented 2-page motion.[…]

This SEC action of halting litigation after an election is not just unusual — it is wholly unprecedented in SEC history.

And you ain’t seen nothin’ yet — yesterday’s SEC Binance enforcement stoppage is just the beginning of the end of the SEC’s crypto-enforcement program. Here’s what to expect from the SEC crypto-realm in the coming weeks and months….

Not Everywhere Is Insider Trading

Here’s an insider trading hypothetical for you. I have a golf buddy who is a senior executive at a public company. One day on the course, she tells me: “My firm is going to announce a takeover of Anacott Steel at $15 per share; you should buy some.” I go back to my office, open up my brokerage app, and am about to buy 10,000 short-dated out-of-the-money call options when I think: “Wait, no, this is insider trading, I will get in trouble for this.” I close the app.

Instead, I pick up my phone and call you. “Hey,” I say, “I’ll bet you a million dollars that Anacott Steel closes above $13 this Friday.” You are a degenerate gambler and have never heard of the concept of adverse selection, so you say “ha, Anacott Steel is at $10 now, this is easy money, it’s a bet.” The next day, the takeover offer is announced, the stock goes to $14, and I collect $1 million from you.

Did I commit insider trading? Oh man is this not legal advice, but my gut is: yes?….

Elizabeth Holmes Says Life Behind Bars Is ‘Hell’ in First Prison Interview

Now she wears drab khaki prison garb, with her blonde hair pulled back, bare makeup and a silver cross around her neck— speaking in a voice notably softer than the throaty baritone she was known for.

“I’m not the same person I was back then,” says Holmes, who pleaded not guilty at her trial and maintains her innocence today, albeit while vaguely acknowledging “there are things I would have done differently” on her path to lockup.

“It’s surreal. People who have never met me believe so strongly about me. They don’t understand who I am. It forces you to spend a lot of time questioning belief and hoping the truth will prevail. I am walking by faith and, ultimately, the truth. But it’s been hell and torture to be here.”

SEC Administrative Judges Risk Being Sidelined Under Paul Atkins

The US Supreme Court dealt a near-fatal blow last year to the Securities and Exchange Commission’s already weakened administrative law judge program. The expected return of Paul Atkins as SEC chairman will likely weaken the ALJ program even further, relegating the in-house judges to the fringe of any enforcement activities.[…]

Atkins’ expected return to the SEC further signals the decline of ALJs. Initial ALJ decisions hit a record high of 205 in 2015, but ALJs issued only 169 total decisions from 2002 to 2008—the same years Atkins served as commissioner.

Since the end of President Donald Trump’s first term in 2020, only 10 ALJ initial decisions have been issued. This was likely due to former chairman Gary Gensler devoting enforcement resources to testing new theories of liability in federal court, including crypto cases and shadow trading. Unsurprisingly, in the anticipation and wake of Jarkesy, no initial decisions were issued in 2024.

The New York Stock Exchange to Launch NYSE Texas

The New York Stock Exchange, part of Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of technology and data, today announced plans to launch NYSE Texas, a fully electronic equities exchange, headquartered in Dallas, Texas. Pending the effectiveness of regulatory filings, NYSE Chicago will reincorporate in Texas and be renamed NYSE Texas, offering companies the opportunity to list their securities on NYSE Texas.

“As the state with the largest number of NYSE listings, representing over $3.7 trillion in market value for our community, Texas is a market leader in fostering a pro-business atmosphere,” said Lynn Martin, President, NYSE Group. “We are delighted to expand our presence in the Lone Star State, which plays a key role in driving our U.S. economy forward.”