The Biden Administration has moved shortly to appoint new management on the Securities and Change Fee (“SEC” or “Fee”). President Biden, in a transfer that gives perception into his priorities and the strategy his administration will pursue with regard to regulatory motion, has nominated former Commodity Futures Buying and selling Fee (“CFTC”) Chairman Gary Gensler to guide the SEC. Mr. Gensler, who led the CFTC through the Obama Administration within the aftermath of the 2008 monetary disaster, is anticipated to take a more durable stance towards Wall Road than the prior administration did. We usually anticipate to see elevated regulatory exercise and a extra energetic enforcement agenda below the Biden Administration.
This memorandum discusses the anticipated enforcement priorities of the brand new administration’s SEC and CFTC. The next listing represents predictions relating to doable areas of focus, and the listing seemingly will change because the administration takes form and resultant enforcement actions happen. Regulated entities ought to monitor regulatory developments, and SEC, and CFTC bulletins, and will anticipate elevated enforcement actions within the areas described herein.
COVID-19 Associated Disclosures
We anticipate that COVID-19 will proceed be an enforcement precedence for the SEC.1 From mid-March 2020 by means of the tip of the Fee’s 2020 fiscal 12 months (September 30, 2020), the SEC opened over 150 COVID-19 associated inquiries and investigations and really helpful a number of COVID-related fraud actions.2 Throughout this similar time interval, the SEC suspended buying and selling in securities of two dozen issuers to guard the market from questionable statements relating to COVID-19, “together with claims about COVID-19 remedies, the manufacture and sale of non-public safety gear, and disaster-response capabilities.”3
On the outset of the pandemic, the SEC “remind[ed] all firms to offer buyers with perception relating to their evaluation of, and plans for addressing, materials dangers to their enterprise and operations,” stressing that such disclosures ought to present significant info that market members can depend on to make funding and voting choices, reasonably than boilerplate language.4 These warnings have been strengthened just lately, when the SEC settled
1 In April 2020, the SEC introduced that COVID-19 is a regulatory precedence. See SEC, Public Assertion: Regulatory Priorities and COVID-19 (April 3, 2020), https://www.sec.gov/information/public-statement/statement-lee-regulatory-priorities-covid-19-2020-04-03.
2 See SEC Division of Enforcement, 2020 Annual Report, 25-26, https://www.sec.gov/information/enforcement-annual-report-2020.pdf (“SEC Annual Report 2020”).
4 See SEC, SEC Offers Conditional Regulatory Reduction and Help for Corporations Affected by the Coronavirus Illness 2019 (COVID-19) (Mar. 4, 2020), https://www.sec.gov/information/press-release/2020-53.
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expenses towards The Cheesecake Manufacturing facility in its first public, high-profile settlement regarding disclosures concerning the affect of COVID-19 on the enterprise operations of a public firm. The SEC targeted on statements The Cheesecake Manufacturing facility had made in press releases filed in Present Reviews on Kind 8-Ok that it was “working sustainably” through the pandemic regardless of inner paperwork evidencing extreme monetary shortcomings.5 The Cheesecake Manufacturing facility was ordered to pay a $125,000 penalty. Because the Cheesecake Manufacturing facility settlement demonstrates, public firms ought to deal with the accuracy of their public disclosures, particularly these regarding enterprise operations through the pandemic.
Environmental, Social, and Governance (“ESG”) Disclosures
The SEC has signaled that it’ll focus its investigative and enforcement efforts on current ESG disclosures. On February 24, 2021, Performing SEC Chair Allison Herren Lee introduced that she was directing the Division of Company Finance to “improve its deal with climate-related disclosure in public firm filings.”6 Performing Chair Lee’s announcement states that the SEC will deal with “the matters recognized within the 2010 steerage,” together with climaterelated disclosures required below the next: description of enterprise (Merchandise 101 of Regulation S-Ok), authorized proceedings (Merchandise 103), threat components (Merchandise 105), and administration’s dialogue and evaluation of monetary situation and outcomes of operations (MD&A) (Merchandise 303).7
On March 4, 2021, the SEC introduced the creation of a Local weather and ESG Activity Drive within the Division of Enforcement that may “develop initiatives to proactively establish ESG-related misconduct,” together with “materials gaps or misstatements in issuers’ disclosure of local weather dangers below current guidelines” and “disclosure and compliance points regarding funding advisers’ and funds’ ESG methods.”8 Moreover, the SEC Division of Examinations emphasised its higher deal with climate-related dangers in its 2021 Examination Priorities. Performing Chair Lee said that the Division of Examination would improve its deal with ESG by “inspecting proxy voting insurance policies and practices to make sure voting aligns with buyers’ greatest pursuits and expectations, in addition to companies’ enterprise continuity plans in mild of intensifying bodily dangers related to local weather change.”9
In mild of this agency-wide renewed deal with local weather threat and ESG disclosures, public firms ought to verify that their disclosures mirror the dangers posed by local weather change as required below the prevailing guidelines significantly these required below the related Gadgets of Regulation S-Ok recognized above and anticipate new guidelines and steerage relating to ESG disclosures within the close to future.
Final 12 months noticed a report variety of suggestions obtained by means of the SEC’s Whistleblower Program. For the fiscal 12 months ended September 30, 2020, the SEC obtained 6,900 suggestions, a 31% enhance from the prior 12-month report.10
5 See CLS Blue Sky Weblog, Cahill Gordon Discusses SEC Motion Towards Cheesecake Manufacturing facility for Deceptive COVID-19 Disclosures (Feb. 9, 2021), https://clsbluesky.legislation.columbia.edu/2021/02/09/cahill-gordon-discusses-sec-action-against-cheesecake-factoryfor-misleading-covid-19-disclosures/.
6 Performing Chair Allison Herren Lee, Assertion on the Evaluation of Local weather-Associated Disclosure (Feb. 24, 2021), https://www.sec.gov/information/public-statement/lee-statement-review-climate-related-disclosure.
7 For a dialogue of required, climate-related disclosures below these provisions, see CAHILL GORDON & REINDEL LLP, SEC Broadcasts Enhanced Evaluation of Local weather-Associated Disclosure (Mar. 4, 2021), https://www.cahill.com/publications/firmmemoranda/2021-03-04-sec-announces-enhanced-review-of-climate-related-disclosure.
8 SEC, SEC Broadcasts Enforcement Activity Drive Centered on Local weather and ESG Points, Press Launch 2021-42 (Mar. 4, 2021), https://www.sec.gov/information/press-release/2021-42.
9 See SEC, SEC Division of Examinations Broadcasts 2021 Examination Priorities, Press Launch 2021-39 (Mar. 3, 2021), https://www.sec.gov/information/press-release/2021-39#.YD_0HEOMd20.mailto (“SEC Examination Priorities 2021”).
10 SEC, 2020 Annual Report back to Congress: Whistleblower Program, 2-3, https://www.sec.gov/information/2020percent20Annualpercent20Report_0.pdf.
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Curiously, the surge in whistleblower suggestions coincided with work-from-home orders starting in March 2020, when many people remained within the privateness of their very own houses. In accordance with a former SEC official who assisted in establishing the Whistleblower Program, the rise in suggestions is probably going associated to workers’ newfound privateness: “You are not being noticed on the photocopy machine once you’re working from house. It is by no means been simpler to report a gathering when you are able to do it out of your eating room desk.”11 As well as, the shortage of connection and diminished loyalty an worker could really feel towards his or her employer when not within the workplace could have been an element within the rise in suggestions.12 As workers proceed to make money working from home for the foreseeable future, the excessive quantity of whistleblower suggestions ought to proceed.
Final 12 months additionally set new data by way of the quantity and quantity of whistleblower awards. The Fee issued roughly $175 million in whole awards to 39 people, a 200% enhance within the variety of particular person awards over the subsequent highest 12 months.13 Given just lately enacted amendments to the Whistleblower Program that for now restrict whistleblower awards, we could not see one other report 12 months for greenback quantity of awards, 14 regardless of the possible enhance in suggestions in 2021, until the brand new Fee rolls again these amendments. The amendments clarified that (i) restoration just isn’t accessible the place a separate whistleblower program extra appropriately applies (e.g., within the case of a non-SEC motion); (ii) the SEC has broad discretion to contemplate the components set forth in Rule 21F-6 below the Whistleblower Program in setting whistleblower award quantities; (iii) a whistleblower’s “unbiased evaluation” should transcend what’s publicly accessible to the SEC; and (iv) the SEC could ban people from in search of awards in the event that they submit false info to the SEC.
Disclosure Enforcement Usually
Along with COVID-specific disclosures, the SEC Annual Report 2020 said that the Fee would proceed to deal with monetary fraud and issuer disclosure. The Fee additional remarked that “[i]n addition to conventional case sources, the Division [of Enforcement] took a proactive, risk-based analytical strategy to figuring out potential violations,” which it relied on to launch and settle enforcement actions regarding disclosures about earnings administration practices, and distortion of non-GAAP monetary measures.15 Underneath Mr. Gensler’s anticipated management, and with the restoration of sure Enforcement officers’ authority to provoke formal investigations,16 the SEC is anticipated to carry an elevated variety of actions regarding company disclosures and materials info usually, which the Fee has said “lie on the coronary heart of our securities legal guidelines.”17
11 Bloomberg, Whistle-Blowing Soars to File With Individuals Working From Residence (January 12, 2021), https://www.bloomberg.com/information/articles/2021-01-12/whistle-blowing-soars-to-record-with-americans-working-from-home.
12 Id. 13 See SEC 2020 Annual Report, at 5. 14 On September 23, 2020, the SEC adopted amendments to its Whistleblower Program “to offer higher readability to whistleblowers
and enhance this system’s effectivity and transparency.” See Press Launch 2020-219, SEC Provides Readability, Effectivity and Transparency to Its Profitable Whistleblower Award Program (Sept. 23, 2020), https://www.sec.gov/information/press-release/2020219; Whistleblower Program Guidelines, Launch No. 34-89963 (Sept. 23, 2020), https://www.sec.gov/guidelines/remaining/2020/34-89963.pdf. 15 SEC Annual Report 2020, 9-10. 16 On February 9, 2021, Performing SEC Chair Allison Herren Lee restored the authority of senior Division of Enforcement officers to approve the issuance of a Formal Order of Investigation. Such authority was delegated through the Obama Administration and withdrawn in 2017 by Performing Chairman Michael Piwowar. See Performing Chair Allison Herren Lee, Assertion on Empowering Enforcement to Higher Shield Buyers (Feb. 9, 2021), https://www.sec.gov/information/public-statement/lee-statement-empoweringenforcement-better-protect-investors. 17 SEC Annual Report 2020, 10.
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Insider Buying and selling / Market Manipulation
Insider buying and selling and market manipulation will stay on the forefront of the SEC’s mission, particularly in mild of elevated market volatility, the current buying and selling frenzy surrounding GameStop, and renewed public consideration to the topic. The SEC introduced solely 32 insider-trading instances in 2019, the fewest since 1996.18 In 2020, that quantity elevated by just one, to 33.19 The brand new SEC management seemingly will examine considerably extra instances of alleged insider buying and selling and market manipulation than can be recommended by these traditionally low figures, as unstable market situations ensuing from the pandemic may show to be fertile floor for insider buying and selling makes an attempt. Though in a roundabout way referring to the current exercise surrounding GameStop’s inventory and the Robinhood buying and selling app, Mr. Gensler remarked at his affirmation listening to that the SEC may take motion to make sure that buyers have entry to markets even when “apps could at occasions fall wanting wanted margin funds” and will search extra protections for buyers who use apps “with behavioral prompts designed to incentivize prospects to commerce extra.”20
We additionally anticipate the CFTC to proceed specializing in market manipulation, together with spoofing, on commodity futures exchanges. The CFTC, persistently by means of the final two administrations, has introduced a report variety of enforcement actions,21 together with its largest ever inter-agency spoofing and manipulation case, the place federal companies assessed $920 million in disgorgement, restitution, and penalties.22 Then-Chairman Heath Tarbert warned on the outset of the pandemic, when agricultural commodity markets have been particularly unstable, that the company can be “expecting any indication that costs are transferring in an uneconomic method relative to the underlying commodity’s money costs” and “monitoring to see if … merchants are trying to govern futures pricing by means of disruptions attributable to provide and demand shocks.”23 Because the COVID-19 pandemic and its attendant market volatility continues, the CFTC seemingly will proceed scrutinizing potential instances of market manipulation and spoofing.
Dealer-Sellers, Funding Advisers, and Related Individuals
The SEC is anticipated to pursue a higher variety of enforcement actions towards broker-dealers, funding advisers, and their related individuals, predicated upon Regulation Finest Curiosity (“Reg BI”) and Kind CRS. Reg BI and its attendant Kind CRS “Relationship Abstract,” which have been adopted by the SEC in June 2019, require that registered broker-dealers act within the “greatest curiosity” of their purchasers. The brand new management’s interpretation of the regulation may function the idea of a higher variety of enforcement actions. For instance, the SEC’s Division of Examinations has said it can proceed to focus within the coming 12 months on retail buyers, with a watch towards Reg BI, Kind CRS, and “whether or not registered funding advisors have fulfilled their fiduciary duties of loyalty and care.”24 Registered entities ought to overview the chance alerts launched by the SEC’s Workplace of Compliance, Inspections, and Examinations (“OCIE”) regarding compliance with Reg BI and Kind CRS and monitor courtroom choices.25 Courts
18 SEC Division of Enforcement, 2019 Annual Report, https://www.sec.gov/information/enforcement-annual-report-2019.pdf. 19 SEC Annual Report 2020. 20 Dean Seal, GameStop, Range Insurance policies Dominate Gensler Listening to, Law360 (Mar. 2, 2021),
https://www.law360.com/compliance/articles/1357940/gamestop-diversity-policies-dominate-gensler-s-sechearing?nl_pk=44cf18ed-1c30-4431-adc03ec703a794bb&utm_source=publication&utm_medium=e-mail&utm_campaign=compliance. 21 See CFTC Division of Enforcement, Annual Report, accessible at https://www.cftc.gov/PressRoom/PressReleases/8323-20 (“CFTC Annual Report 2020”). 22 See CFTC, CFTC Orders JPMorgan to Pay File $920 Million for Spoofing and Manipulation (Sept. 29, 2020), https://www.cftc.gov/PressRoom/PressReleases/8260-20. 23 CFTC Chair Tarbert, Opening Assertion earlier than the April 22 Agricultural Advisory Committee Assembly (Apr. 22, 2019), https://www.cftc.gov/PressRoom/SpeechesTestimony/tarbertstatement042220. 24 See SEC Examination Priorities 2021. 25 For a full listing of OCIE publications, see https://www.sec.gov/exams/bulletins.
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even have begun to weigh in on the affect of Reg BI, and people choices may present extra bases to pursue an elevated variety of enforcement actions.26
Elevated Penalties and Disgorgement
The Fee is anticipated to pursue bigger penalties and disgorgement quantities. In 2020, the Fee obtained a report $4.68 billion in whole penalties and disgorgement, surpassing 2019’s earlier excessive of $4.35 billion. Regardless of this report, the median quantity ordered per motion truly decreased to $532,860, down from $554,033, with median penalties and disgorgements each declining from FY 2019.27 Not too long ago, Commissioner Caroline Crenshaw endorsed pursuing greater particular person penalties, stating that “company penalties needs to be tied to the egregiousness of the particular misconduct, not simply the profit or affect on shareholders.” 28 Commissioner Crenshaw contrasted her view with the shareholder-centered strategy to penalties at present pursued by the Fee,29 reasoning that greater penalties will strengthen compliance and inner controls, which can profit shareholders in the long run. If Mr. Gensler’s tenure as Chairman on the CFTC is any indication, he’s more likely to agree with Commissioner Crenshaw, and the SEC below his management could search greater particular person penalties, which might end in elevated whole cash recovered and median penalty quantities.
Congress just lately expanded the SEC’s authority to hunt disgorgement in Part 6501 of the Nationwide Protection Authorization Act for fiscal 12 months 2021, which went into impact on January 1, 2021. Part 6501 doubles the statute of limitations for “scienter-based” disgorgement actions these involving intentional or severely reckless conduct from 5 years to 10. Disgorgement was beforehand accessible to the Fee solely as an equitable treatment.30 Now that disgorgement is statutorily-based, and the Fee can “`attain again” as much as a decade in sure instances, the SEC is anticipated to hunt disgorgement extra incessantly and in greater quantities.
Part 1502 of the Dodd-Frank Act of 2010 required the SEC to promulgate guidelines requiring issuers to reveal yearly whether or not minerals which are “essential to the performance or manufacturing of a product” manufactured by the corporate originated within the Democratic Republic of the Congo or any adjoining nation. In 2012, the SEC adopted the Conflicts Mineral Rule, which requires public firms to conduct a “cheap nation of origin inquiry” and publicly disclose of their Types SD whether or not their merchandise comprise battle minerals specifically, tin, tantalum, tungsten (the so-called “3Ts”), or gold.31
26 See, e.g., CAHILL GORDON & REINDEL LLP, Second Circuit Rejects Problem to SEC’s Regulation Finest Curiosity (Jul. 27, 2020), https://www.cahill.com/publications/firm-memoranda/2020-07-27-second-circuit-rejects-challenge-to-secs-regulation-bestinterest.
27 See SEC Annual Report 2020. 28 Tom Zanki, SEC’s Crenshaw Urges Stiffer Company Misconduct Penalties, Law360 (Mar. 9, 2021),
https://www.law360.com/securities/articles/1362860/sec-s-crenshaw-urges-stiffer-corporate-misconductpenalties?nl_pk=dbb6ab14-4708-43cd-8327352cbedacd5e&utm_source=publication&utm_medium=e-mail&utm_campaign=securities&read_more=1. 29 The “shareholder-centered” view primarily has guided the Fee’s strategy to misconduct penalties since 2006, when it was articulated in a then-unanimous Assertion. See SEC, Assertion of the Securities and Change Fee Regarding Monetary Penalties, Press Launch 2006-4 (Jan. 4,2006), https://www.sec.gov/information/press/2006-4.htm. 30 See CAHILL GORDON & REINDEL LLP, Supreme Courtroom Holds that SEC Disgorgement Is a Type of Equitable Reduction (Jul. 27, 2020), https://www.cahill.com/publications/firm-memoranda/2020-07-27-supreme-court-holds-that-sec-disgorgement-is-a-form-ofequitable-relief. 31 Textual content of the ultimate rule accessible at https://www.sec.gov/guidelines/remaining/2012/34-67716.pdf.
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In April 2017, Performing SEC Chairman Michael Piwowar issued an announcement successfully freezing enforcement of the Conflicts Mineral Rule.32 Piwowar’s assertion was primarily based on a call by the USA Courtroom of Appeals for the D.C. Circuit that the Conflicts Mineral Rule “violate[s] the First Modification to the extent the statute and rule require regulated entities to report back to the Fee and to state on their web site that any of their merchandise have `not been discovered to be DRC battle free'” and remanded to the SEC to take extra motion in furtherance of the courtroom’s resolution.33 The SEC has not issued any re-formulation of the Conflicts Mineral Rule, and then-Chairman Jay Clayton didn’t touch upon the rule throughout his tenure.
Underneath the Biden Administration, the SEC is anticipated to re-formulate the Conflicts Mineral Rule to deal with the D.C. Circuit’s ruling. The rule additionally may very well be overhauled in new laws from the Democratic-majority Congress. A newly re-formulated Conflicts Mineral Rule may function the idea for enforcement actions towards issuers whose battle mineral due diligence or disclosures are discovered missing. A number of public firms for instance, Apple, Intel, and Tiffany & Co.34 have continued to stick to the rule even within the absence of enforcement. Affected public firms ought to undertake or proceed to observe business best-practices for battle mineral due diligence and disclosure, and they need to anticipate new regulatory and enforcement motion relating to make use of of battle minerals and sourcing strategies.
Cryptocurrencies / Digital Property
The CFTC is anticipated to proceed regulating cryptocurrencies as coming throughout the definition of a “commodity” below the Commodity Change Act (“CEA”) and bringing enforcement actions towards cryptocurrency merchants and exchanges, because it has completed since 2015.35 In 2020, the CFTC introduced a report seven actions involving digital belongings.36 No matter whom is ultimately nominated as Chairman, we anticipate the CFTC to proceed this development and pursue a higher variety of enforcement actions surrounding cryptocurrencies significantly Bitcoin and Ether, which each have been declared commodities.37 This elevated deal with cryptocurrencies could speed up additional as cryptocurrencies proceed to rise in worth, quantity, and use.
The SEC additionally is anticipated to pursue enforcement actions regarding digital belongings and cryptocurrencies. In 2019, the SEC revealed a framework for analyzing whether or not a digital asset is an funding contract38 and whether or not provides and gross sales of digital belongings are securities transactions topic to federal securities legal guidelines.39 The SEC’s Division
32 Performing SEC Chairman Michael S. Piwowar, Piwowar on the Courtroom of Appeals Resolution on the Battle Minerals Rule (Apr. 7, 2017), https://www.sec.gov/information/public-statement/piwowar-statement-court-decision-conflict-minerals-rule#_ftn1.
33 Nat’l Ass’n of Mfrs., et al. v. SEC, 800 F.3d 518, 530 (D.C. Cir. 2015) (inner citation marks omitted). 34 See Todd C. Frankel, Why Apple and Intel do not need to see the conflicts mineral rule rolled again, Washington Put up (Feb. 23,
2017), https://www.washingtonpost.com/enterprise/financial system/why-apple-and-intel-dont-want-to-see-the-conflict-minerals-rulerolled-back/2017/02/23/b027671e-f565-11e6-8d72-263470bf0401_story.html. 35 See CFTC, Backgrounder on Oversight of and Strategy to Digital Foreign money Futures Markets (Jan. 4, 2018), https://www.cftc.gov/websites/default/information/idc/teams/public/@newsroom/paperwork/file/backgrounder_virtualcurrency01.pdf; CFTC Orders Bitcoin Choices Buying and selling Platform Operator and Its CEO to Stop Illegally Providing Bitcoin Choices and to Stop Working a Facility for Buying and selling or Processing of Swaps with out Registering (Sept. 17, 2015), https://www.cftc.gov/PressRoom/PressReleases/7231-15. 36 See CFTC Annual Report 2020. 37 See Daniel Roberts, CFTC Says Cryptocurrency Ether Is a Commodity, and Ether Futures Are Subsequent, Yahoo Finance, (Oct. 10, 2019), https://ca.finance.yahoo.com/information/cftc-says-cryptocurrency-ether-is-a-commodity-and-is-open-to-ether-derivatives133455545.html. 38 The crucial inquiry for the SEC has been whether or not tokens and different digital belongings are “securities” below the Howey Check, promulgated over 70 years by the Supreme Courtroom in SEC v. W.J. Howey Co., 328 U.S. 293, 66 S. Ct. 1100, 90 L. Ed. 1244 (1946). 39 SEC, Framework for “Funding Contract” Evaluation of Digital Property (Apr. 3, 3019), https://www.sec.gov/corpfin/frameworkinvestment-contract-analysis-digital-assets#_edn1.
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of Examinations has signaled that it’ll flip its focus to registrants that commerce in cryptocurrencies and different digital belongings.40
The SEC has remained targeted on figuring out when the federal securities legal guidelines apply to provides and gross sales of digital belongings. One excessive profile enforcement motion this previous 12 months involved actor Steven Seagal’s promotion of an preliminary coin providing (“ICO”) performed by Bitcoiin2Gen with out first disclosing funds he obtained from the corporate.41 The SEC discovered that Mr. Seagal violated the anti-touting provisions of the federal securities legal guidelines, fined him $157,000, and ordered disgorgement of all promotional funds.
In one other current, high-profile case filed in federal district courtroom, SEC v. Ripple Labs, et al., 20-cv-10832 (S.D.N.Y. Dec. 22, 2020), the SEC alleged that Ripple (a cryptocurrency alternate) and its present and former CEOs performed an providing of digital belongings referred to as XRP in an unregistered securities providing price $1.3 billion. As well as, the SEC alleged that Ripple performed exchanges of XRP for non-cash consideration equivalent to labor and market-making providers. As digital belongings proceed to growth, there are more likely to be related enforcement actions in 2021 particularly, these involving unregistered “tokens” or “cash,” deceptive statements about advantages or future worth of sure digital belongings, or promotional efforts by celebrities.42
The SEC and CFTC below the Biden Administration are anticipated to be extra enforcement-focused than below the prior administration and can pursue investigations and enforcement actions in step with the brand new administration’s said coverage objectives. Though the priorities of those companies could change on account of shifting developments or political realities, firms and controlled entities ought to be sure that their compliance and supervisory applications are up-to-date and working easily, together with by staying abreast of latest guidelines, rules, and enforcement actions as they come up.
In case you have any questions concerning the points addressed on this memorandum, or if you want a duplicate of any of the supplies talked about in it, please don’t hesitate to name or e-mail authors Bradley J. Bondi (accomplice) at 202.862.8910 or [email protected]; Joel Kurtzberg (accomplice) at 212.701.3120 or [email protected]; Peter J. Linken (counsel) at 212.701.3715 or [email protected]; Adam Mintz (counsel) at 212.701.3981 or [email protected]; Grace McAllister (affiliate) at 212.701.3343 or [email protected]; or Connor Shea (affiliate) at 212.701.3756 or [email protected]; or e-mail [email protected]
40 See SEC Examination Priorities 2021.
41 SEC, Actor Steven Seagal Charged With Unlawfully Touting Digital Asset Providing, Press Launch 2020-42 (Feb. 27, 2020), https://www.sec.gov/information/press-release/2020-42.
42 See, e.g., SEC, Unregistered $25.5 Million ICO Issuer to Return Cash for Distribution to Buyers, Press Launch 2020-124
(Might 28, 2020), https://www.sec.gov/information/press-release/2020-124; SEC, Unregistered ICO Issuer Agrees to Disable
Tokens and Pay Penalty for Distribution to Harmed Buyers, Press Launch 2020-211 (Sept. 15, 2020),
https://www.sec.gov/information/press-release/2020-211; and SEC, SEC
Prices Issuer and CEO With Misrepresenting
Platform Know-how in Fraudulent ICO,
Press Launch 2020-181 (Aug. 13, 2020), https://www.sec.gov/information/press-
This memorandum is for normal info functions solely and isn’t supposed to promote our providers, solicit purchasers or characterize our authorized recommendation.
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