U.S. Supreme Court Declines to Hear Broker-Dealer's Constitutional Challenge to FINRA

US Supreme Court turns away challenge by Alpine Securities to FINRA

The U.S. Supreme Court declined on Monday to hear a challenge by broker-dealer Alpine Securities claiming that the enforcement power given by the federal government to the Financial Industry Regulatory Authority, Wall Street’s self-regulator, is unconstitutional.

The justices turned away Salt Lake City-based Alpine’s appeal of a lower court’s ruling that allowed FINRA to move forward with an enforcement action against the company for allegedly stealing more than $54.5 million from customers.

Coinbase Moves to Bring Oregon Securities Suit to Federal Jurisdiction

Coinbase (COIN) is petitioning a federal court to take over jurisdiction of Oregon’s lawsuit accusing it of selling unregistered securities, arguing the state is improperly interfering with federal efforts to clarify digital asset regulations.

In a filing late Monday evening, Coinbase argued that Oregon Attorney General Dan Rayfield’s lawsuit which it initiated in April over alleged trading of unregistered securities represents an overreach, and seeks to establish a patchwork regulatory landscape conflicting directly with ongoing bipartisan efforts at the federal level.

Muddying the Waters: More Confusion on Crypto Asset Security Status

Over the last several months, we have heard repeatedly that the Commission, and its new Crypto Task Force, are embarking on a quest to give the crypto industry regulatory clarity. We’ve heard “change is coming fast” for crypto at the SEC and that the crypto markets will soon be free from the “limbo” they’ve been “languishing […] in for years.”

In the name of this clarity, we’ve seen staff statement after staff statement, pronouncing that all sorts of crypto assets are not securities. And yet, now we see no objection to the effectiveness of new exchange-traded funds that assert certain crypto assets—ETH and SOL—actually are securities. Does this Commission, in fact, believe that ETH and SOL are securities?

How is it that these crypto assets are supposedly not securities when it comes to registration requirements, but conveniently are securities when a registrant sees an opportunity to sell a new product?

If you’re confused, join the club….

Accounting Fraud, Failed Audits Remain on SEC Enforcement Agenda

Accounting fraud and audit failures remain fixtures of the SEC’s enforcement agenda even as the Wall Street regulator shifts its priorities under the Trump administration and grapples with the fallout of a recent Supreme Court decision.

The Securities and Exchange Commission continues to focus on gatekeeper accountability, acting Chief Accountant Ryan Wolfe said to auditors and their lawyers at an American Law Institute conference Monday.

“A strong accounting profession that is acting as a force for good is completely consistent with the presence of a robust enforcement program focused on gatekeepers,” Wolfe said. “Ethics and quality are worth defending.” …

A Friend Bought Crypto for My Newborn Baby. Do I Have to Hold on to It?

My wife and I just had a baby girl. A college friend of ours sent us $175 in Bitcoin as a baby gift. He’s a crypto bro and is super-into it, while I, on the other hand, am extremely skeptical. My friend said that I can’t sell it until her bat mitzvah (when “it will be at least $1,000,” in his words). I believe that there is a decent likelihood that it is worth $0 in 12 years. Since I am the steward of my baby’s money (until she turns 18), do I have a fiduciary responsibility to sell the Bitcoin now since I think it will be worth nothing, or do I have a responsibility to honor my friend’s wishes and keep the money in Bitcoin until she turns 12? — Michael, New York