General Counsel
Tw Li

January 14, 2022

Time to Address Blockchain

Cabinet Commentary: The Securities Law Treatment of Utility Tokens

Steven Lofchie

Commentary by Steven Lofchie

Cadwalader attorneys argue that the SEC should revisit the application of the securities regulations to the sale of utility tokens on blockchain networks.

"The middle ground may provide somewhat less investor protection than the full application of the U.S. securities laws . . . but may be one that provides sufficient investor protection as well as benefits to the U.S. economy by facilitating financial innovation."

Cadwalader attorneys on the regulation of utility tokens

OCC Acting Comptroller Argues that Bank Regulation Would Mitigate Crypto Risk

OCC Acting Comptroller Michael J. Hsu identified some of the risks associated with stablecoins and suggested that the regulation of issuers as banks could actually enable more durable innovation.

CFTC Commissioner Stump Describes Regulatory Challenges Presented by Innovation

CFTC Commissioner Dawn D. Stump described regulatory challenges presented by financial market innovation.

"I believe it is thus incumbent upon the CFTC to bridge the gap between its enforcement and oversight functions by setting more clearly defined regulatory expectations for new, innovative applications in the derivatives market infrastructure."

CFTC Commissioner Dawn D. Stump

FRB Governor Brainard Prioritizes Controlling Inflation at Nomination Hearing

At a hearing before the Senate Banking Committee on her nomination to become Vice Chair of the Federal Reserve Board, Governor Lael Brainard argued that monetary policies must be "focused on getting inflation back down to 2 percent while sustaining a recovery."

NFA Reminds Members of Deadline on Exemptions for CPOs and CTAs

NFA reminded firms that the CFTC requires any CPO that claims an exemption from registration to file a notice of exemption by March 1, 2022.

MSRB Annual Report Highlights Modernization Efforts

In its 2021 Annual Report, the MSRB highlighted the organization's ongoing modernization efforts amid the challenges posed by the global pandemic.

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