How to regulate a digital asset that has both a functional "use" and that may increase in monetary value is a difficult question. Commissioner Peirce is grappling with the difficult regulatory situation in which a purchaser of the digital asset may be buying it for its functional use (in which case the asset is not being purchased as a "security") or may be buying it with the hope of making a profit (in which case that same asset might be a "security").

Individuals and companies who…

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A broker-dealer ordinarily becomes subject to a suitability obligation when it makes a "recommendation" to a customer. However, in the case of options, a broker-dealer is subject to the obligation as a result of effecting the transaction, without regard to whether a recommendation has been made. Accordingly, firms are subject to an obligation to review the decisions of customers who trade options, even if the transaction or product was not recommended.

FINRA may take a more aggressive…

While the Federal Reserve Board's cautious approach as to the digital dollar is understandable, it has been clear that this development was coming. The United States will now be - at best - second in line.

One can argue all one likes as to whether central bank digital currencies are a good thing. They are an inevitable thing, so whether it is good or bad is a somewhat moot policy question. Given that it is inevitable, it would be better to be early to the game.