We examine the SEC's ongoing investigation of domestic Initial Coin Offerings and cryptocurrencies.
The SEC Division of Trading and Markets held a panel discussion and workshop at the PLI SEC Speaks program on February 24, 2018, where the implications of blockchain technology for securities markets was a prominent topic of discussion. However, the discussions reveal that the staff is in the early stages of assessing the issues and determining the appropriate application of Exchange Act rules to the new technology.
The SEC's Division of Corporation Finance discussed its views on token sales and other blockchain issues.
On February 21, 2018, the SEC issued new guidance for public companies regarding the disclosure of material cyber risks and incidents affecting their businesses. The new guidance updates and expands on guidance issued in October 2011 by the SEC’s Division of Corporate Finance, which advised that although no rule explicitly mandates cybersecurity disclosures, cyber risks and incidents could nonetheless be sufficiently material to investors to warrant disclosure in a company’s public filings. The new guidance is similarly non-binding but nonetheless addresses how disclosure of material cyber risks and incidents may be required as part of a company’s existing disclosure obligations. Here are five takeaways from the new guidance.
Former federal prosecutor Joseph Facciponti has joined white-collar boutique Murphy & McGonigle in New York as a shareholder in its cybersecurity practice.
Recently, the SEC has used its authority in Exchange Act Section 12(k) to suspend trading in the stock of four issuers that reflects the SEC’s concern about the public market for an issuer’s stock influenced by potentially unfounded claims about the use of, or association with, blockchain technology and cryptocurrencies. A trading suspension can have a significant impact on the subsequent market for the issuer's stock.