This is another case in which the regulators brought charges against a firm for failing to do a locate where the broker-dealer was executing a "riskless principal" transaction; i.e., buying a security from a customer and then selling it to a third party.  See also .

There is simply no logic to this, regardless of how the SEC defines the term "riskless principal." There is only one share of stock needed in the two transactions; the share that the customer sells to the broker-…

It is quite clear that Chair Gensler is of the view that all digital assets (except Bitcoin) are securities and that the ordinary securities rules generally apply.

The problem with Mr. Gensler's position is not a lack of clarity. The problem is that the ordinary securities rules are not practical for digital assets (other than those digital assets that are ordinary securities or debt represented on the blockchain) and, therefore, there is no practical way for firms to comply. If Mr.…

First, the statement that none of the bailout will be borne by taxpayers is somewhat misleading. The bailout is not being financed by other banks buying a business that had positive going forward value. Rather, it is being financed by government-imposed regulatory fees that must be passed through and eaten by shareholders or paid by customers in higher fees or lower interest rates on deposits.  

Second, the statement raises many questions. Are all bank deposits from now on…

From an administrative law standpoint, the agency is a strange creature, particularly in its ability to obtain funding that it outside of congressional control. The structure of the agency and its funding mechanism will most likely be determined by courts reviewing whether they violate the Constitution.