SEC Commissioner Hester M. Peirce challenged the basis of a recent SEC enforcement action against an initial coin offering issuer for unregistered digital token offerings and criticized the agency for failing to provide guidance on the dividing line between tokens that are securities and those that are not.
The U.S. District Court for the Southern District of New York held that certain syndicated loans sold to institutional investors are not "securities" and rejected claims of violations of federal and state securities laws.
On July 17, 2019, members of the U.S. House Committee on Financial Services considered testimony on the potential impact of Facebook's proposed cryptocurrency on consumers, investors and the global financial system.
SEC Commissioner Hester M. Peirce proposed establishing a three-year safe harbor from the securities laws, other than the anti-fraud requirements, for the sale and trading of digital tokens that satisfy various conditions.
The SEC Division of Corporation Finance determined that, for the purposes of applying Exchange Act Rules related to "Collar Contracts," an insider will be deemed to own the corporation shares underlying the operating partnership units.
SIFMA and the Security Traders Association raised concerns about legislative proposals on capital formation and corporate governance currently under consideration by the U.S. Senate Committee on Banking, Housing and Urban Affairs.