Props for the “Reg A” Reality: A lesson in digital asset securities offerings
It pains me to say it, but Open Props’ recent announcement of the coming termination of its ongoing Regulation A (“Reg A”) digital asset securities (Props) offering and the cessation of support for its Props Loyalty Program leads me to one stark conclusion.
SEC and DOJ Charge Startup with Defrauding Investors
This week, the Securities Exchange Commission (“SEC”) charged a small, California-based private company (YouPlus, Inc., or “YouPlus”) and its CEO with violating antifraud provisions of the federal securities laws by making false and misleading statements about the company’s finances and sources of revenue.1 In a parallel action, the U.S. Department of Justice (“DOJ”) announced criminal charges against the CEO for wire fraud and securities fraud following an investigation by the Federal Bureau of Investigation.2
Proposed Rules on Facilitating Capital Formation and Expanding Investment Opportunities
The U.S. Securities and Exchange Commission recently proposed a number of amendments to its capital formation rules. The proposed amendments focus on certain aspects of exempt offerings—that is, securities offerings that don’t need to be registered with the SEC. We submitted a letter to the SEC laying out some of our thoughts on the proposed rules. You can read our comment letter here.
Capital Raising Under Regulation CF Just Became (Temporarily) Easier
The temporary final rules are intended to expedite the offering process for small businesses affected by COVID-19 by providing tailored, conditional relief from certain requirements of Reg CF.
Hindsight from 2020: Notable Regulatory Events for Blockchain in 2019
Ketsal’s team of lawyers put our heads together in early January to reflect on the prior year and what it means for the one to come. Regulators really did step it up this year. There’s a lot to digest.