This marks the second wave of Marketing Rule enforcement actions by the SEC following charges brought against nine registered investment advisers in September 2023. These actions should serve as a reminder that all registered investment advisers must regularly review and update all marketing materials, including websites, social media and printed materials to ensure they are not misleading and are in compliance with the Marketing Rule.

It's interesting to note that for each of the…

While certain SEC Commissioners and staff may argue otherwise, the current SEC framework and its application to digital assets does raise significant regulatory questions. The existing regulatory framework, primarily designed for traditional securities, fails to adequately address the decentralized nature, potential utility and evolving functionalities of certain digital assets. Further, many argue that the SEC registration scheme is not workable when applied to digital assets.

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Currently, internet advisers may register with the SEC (rather than with the States) if they have fewer than fifteen clients to which they provide services other than through the internet. The new rule eliminates this de minimis provision and requires investment advisers relying on the exemption to provide investment advice to all of their clients exclusively through an interactive website. Advisers that currently rely on the internet exemption to register with the SEC, rather than with the…

There is widespread agreement that tailored regulation could benefit the crypto markets, rather than the SEC’s continued theme of regulation by enforcement. The fact that no crypto firm has registered with the SEC could be taken as evidence that the SEC registration scheme, developed for ordinary equity and debt securities, is not workable as applied to crypto assets and crypto market participants. As the SEC continues to pursue enforcement actions against major crypto firms, many crypto…