The SEC Wants You!

SEC Crypto Cyber

Notice that it’s all in the Division of Enforcement. As far as I can tell the Division of Writing DeFi Rules continues to have roughly zero dedicated position. The way you will know what SEC’s crypto rules are is that in like five years you will be able to look at a bunch of enforcement actions. Each enforcement action will begin by describing what the company did that was bad, and you’ll know that is illegal. Each settled enforcement action will end by describing what the company agreed to do to remedy the problem, and you’ll know that is legal. And you’ll try to do the legal things and not do the illegal things and make your best guess about things that aren’t described in any of the enforcement actions. But it seems to me that the major enforcement actions are still mostly in the future, so good luck figuring it out now.

California governor signs executive order on cryptocurrencies

Newsom is directing the state’s business and economic development office to work in collaboration with California’s Business, Consumer Services and Housing Agency and the Department of Financial Protection and Innovation.

The order is designed to “create a transparent and consistent business environment for companies operating in blockchain, including crypto assets and related financial technologies, that harmonizes federal and California laws, balances the benefits and risks to consumers, and incorporates California values, such as equity, inclusivity, and environmental protection.”

U.S. securities regulator probes Didi Global’s $4.4 billion IPO

The U.S. Securities Exchange Commission is investigating Didi Global Inc over its $4.4 billion initial public offering in the United States in June last year, the Chinese ride-hailing giant said.

Didi was cooperating with the U.S. securities regulator’s investigation related to the offering, “subject to strict compliance” with Chinese law, the company said in its annual filing on Monday.

SEC Obtains Asset Freeze Against Idaho Residents in Trading Scheme

The SEC’s complaint, filed in federal court in New York, alleges that since at least November 2020, David Lee Stone has used deceptive means to obtain pre-release access to stock picks by at least two subscription stock picking services offered by The Motley Fool. According to the complaint, beginning in January 2021, Stone began sharing those picks with his friend John Robson, typically a day or two prior to their release. The SEC alleges that Stone and Robson then purchased aggressive positions in the securities of the selected issuers, the prices of the issuers’ stocks would typically rise after The Motley Fool announced its picks, and Stone and Robson would then cash out of their positions, often within minutes after The Motley Fool announcement. The SEC contends that Stone has made illicit profits of more than $3.9 million, and Robson has made illicit profits of nearly $3 million. The SEC’s complaint names as relief defendants two of Stone’s family members and two of Robson’s friends whose brokerage accounts placed similar trades and generated approximately $5 million by trading ahead of The Motley Fool stock picks.