Distributed Ledger Technology (DLT) and cryptocurrency have been a hot topic this summer. DLT has begun its transition from a proof-of-concept phase, to a real world deployment. Some of the changes over the last six weeks include: Bitcoin splitting into two currencies; the Securities Exchange Commission (SEC), the Canadian Securities Administrators (CSA), and the Monetary
SEC Securities Trading Suspension for Three Blockchain- Related Companies
By Kari Larsen, Michael Selig, Aron Izower & Herbert Kozlov on
Digital tokens are now being incorporated into federal and state regulatory regimes. Over the past two weeks, the Securities and Exchange Commission (“SEC”) has suspended the trading of company securities of three publicly-traded blockchain-related companies The first company to be suspended was CIAO Group, Inc. (“CIAU”) due to questions regarding the accuracy of statements pertaining…
SEC Increases Focus on Cyber Incident Response
By Bhashit (Sheek) Shah on
In the past few years, we have seen an uptick in agencies beginning to focus on the cybersecurity readiness and response of organizations subject to their jurisdiction.
The U.S. Securities and Exchange Commission (SEC), for example, has identified cybersecurity as a top priority for many years. This past June, the SEC named Stephanie Avakian and…
Leveraging the Blockchain to Provide an Unalterable, Distributed Ledger for Transactions, Supply Chains and Other Corporate Processes
By Kari Larsen, David Krone & Anthony J. Ford on
On Monday, November 14, 2016, the Securities and Exchange Commission (SEC) hosted a forum to discuss financial technology (FinTech) innovation in the financial services industry. The summit discussed several topics, but the second panel, titled “Impact of Recent Innovation on Trading, Settlement, and Clearance Activities,” specifically addressed blockchain-enabled distributed ledger technology and its applicability in corporate environments. The panel provided an opportunity for the SEC to highlight blockchain’s potential for assisting companies in meeting compliance requirements, cutting costs with respect to record keeping and tracking assets, and disintermediating transactions.
Corporations have begun to seriously examine the opportunities made available by blockchain-enabled distributed ledger technology beyond digital currency, in areas ranging from financial services and retail supply chains to art and music. Unlike Bitcoin, where the blockchain provides a transfer mechanism and ledger for the intangible currency, digital ledger technology also may provide a distributed, often a privately managed system of records for a wide variety of transactions.
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Cybersecurity Oversight: What is a Board of Directors to Do?
By Sarah R. Wolff on
Cybersecurity and the risks of data breaches figured prominently at the 35th Annual Ray Garrett Corporate and Securities Law Institute held April 30, 2015, at Northwestern Law School in Chicago. Participating in a panel addressing Cybersecurity and Data Breach: The New Reality for Directors and Those Who Advise Them, Reed Smith partner Mark Melodia and several other panelists engaged in a wide-ranging discussion of effective board oversight of cybersecurity challenges facing their companies. Notably, this was the first time that cybersecurity issues were the sole focus of a Garrett Institute panel.
During his remarks, Mark stressed that boards must be engaged in oversight of a company’s cybersecurity enterprise risk management, as well as crisis management. In a widely publicized June 2014 speech given by Securities and Exchange Commissioner (SEC) Luis Aguilar, the commissioner threw down the gauntlet to directors of public companies, telling them that they needed to become active participants in overseeing their companies’ cybersecurity planning and preparation. As he put it, “directors should take seriously their obligation to make sure that companies are appropriately addressing [cyber risks].”
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SEC Regs Amended To Allow Hedge Funds To Advertise: Potential Data Privacy Implications
By Paul Bond & Keri S. Bruce on
This post was also written by Alexandra Poe and Frederick Lah.
Last week, the SEC proposed amendments to Rule 506 of Reg D to lift a long-standing ban on advertising for hedge funds and certain other investments. Over the course of the next few weeks, Reed Smith will be releasing a series of blog posts…