By: Julie Chung The rise in cryptocurrency usage and sales confused the traditional securities and financial space. The Securities and Exchange Commission (“SEC”) typically exercised regulatory oversight to protect investors in the capital markets.[1]Cryptocurrencies have notably dodged financial regulators like the SEC with virtual currencies and sophisticated payment systems structured to avoid financial regulation.[2] Cryptocurrencies…

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By: Cassy Sulzer On February 6, 2024, The Securities and Exchange Commission (“SEC”) implemented two new rules in the Securities Exchange Act of 1934 (“the Act”): Rule 3a5-4 and 3a44-2.[1] These rules introduce ambiguity regarding the classification of individuals as “dealers” or as “traders,” crucial for determining registration requirements with both the SEC and self-regulatory…

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By: Hannah Lief Alpine Securities Corporation (“Alpine”), a broker-dealer, is challenging the delegation of authority by the Securities and Exchange Commission (“SEC”) to Financial Industry Regulatory Authority (“FINRA”) in Alpine Securities Corp. v. Financial Industry Regulatory Authority, Inc.[1] The lawsuit arises out of Alpine’s constitutional challenge to FINRA’s enforcement of securities regulations.[2] During district court…

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By: Elizabeth Sloop When a borrower requires a loan too large for a single lender’s capital base, a group of lenders, or syndicate, may step in to provide funds.[1]  By participating in syndicated lending, the lenders, typically banks and non-bank financial institutions,[2] are able to distribute the risk of default among themselves.[3]  Because of the…

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